Objectives: This article examines whether the internalization of public services by the Portuguese socialist government (2016–2024) effectively reduced consultancy costs and improved service quality. Theoretical Framework: Drawing on Mariana Mazzucato, Rosie Collington, and Max Weber, it engages with concepts such as New Public Management, ESG criteria, and the infantilization of public administration. Method: A qualitative, critical case study approach is used, analyzing government policies including the renationalization of TAP, the end of healthcare PPPs, expanded university access, and the re-establishment of the National Institute of Administration (INA). Results and Discussion: Internalization increased budget costs, reduced service quality, and introduced ideological bias into public sector training. Overreliance on consultants and a bureaucratic mindset weakened state capacity and legitimacy, fueling populist reactions. Research Implications: The findings advocate for mission-oriented reforms focused on public policy rather than bureaucratic structures, emphasizing strategic vision, interdisciplinarity, and citizen-centered governance. Originality/Value: This study offers a critical contribution to public administration reform, challenging both neoliberal and statist extremes. It proposes a hybrid model rooted in public value, transparency, and democratic accountability as a path toward a more resilient and responsive state.
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