Back Matter

Back Matter

Author(s):
International Monetary Fund
Published Date:
June 2002
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    Notes

    The issues paper was based on 11 country cases illustrating recent Bank- and Fund-supported civil service reforms: Benin, Bolivia, Cambodia, the FYR of Macedonia, Mali, Mongolia, Pakistan, the Russian Federation, Tanzania, the Republic of Yemen, and Zambia.

    Prepared by the FAD of the IMF and the Public Sector Group of the Poverty Reduction and Economic Management (PREM) Network in the Bank, with assistance from Fund Area Departments and Bank country teams. This is a staff discussion paper. It is not for decision, and has not been endorsed by senior management in the Bank or the Fund.

    See “Strengthening IMF-World Bank Collaboration on Country Programs and Conditionality” (August 23, 2001) http://www.imf.org/ external/np/pdr/ cond/2001/eng/collab/coll.htm.

    The 11 sample countries are: Benin, Bolivia, Cambodia, the FYR of Macedonia, Mali, Mongolia, Pakistan, the Russian Federation, Tanzania, the Republic of Yemen, and Zambia.

    Data on public employment for local governments were available for only 6 of the 11 case studies. In many countries, subnational governments could constitute a substantial part of public employment, such as employment in health and education. Given the significance and complexities of public employment issues in education and health, it may be necessary to address reforms of these sectors separately from the reform of general civil service administration.

    The case studies, in focusing on core central government employees, have not emphasized the parallel work that may be taking place in the health and education sectors (see endnote 5). Teachers or medical professionals usually constitute a majority of civilian central government staff with direct service delivery responsibility. There are also many parallel reforms in subnational government currently under way in these two sectors.

    Per capita GDP itself can be a questionable measure when labor participation rates are low and much of the economy is informal.

    The PRGF provides medium-term assistance to countries where poverty reduction is the cornerstone of the growth-oriented economic strategy. It is based on a comprehensive, nationally owned PRSP prepared by the borrowing country and endorsed in their respective areas of responsibility by the Boards of the Fund and Bank as the basis for the institutions7 concessional loans and for relief under the enhanced HIPC Initiative.

    The EFF provides medium-term assistance to members with (a) an economy suffering a serious payments imbalance relating to structural maladjustments in production and trade and where price and cost distortions have been widespread; or (b) an economy characterized by slow growth and an inherently weak balance of payments position that prevents pursuit of an active development policy. The length of an EFF arrangement is typically three years, and disbursement is conditional on the borrower’s meeting specified performance requirements, including structural reforms.

    In particular, the availability of an integrated computerized payroll system can be very useful in identifying ghost workers, irregular wage drift, irregular hiring, and wage arrears.

    Pension reform was subsequently dropped as a structural benchmark in the Republic of Yemen.

    See “Strengthening IMF-World Bank Collaboration on Country Programs and Conditionality” (August 23, 2001) http://www.imf.org/external/np/pdr/cond/2001 / eng/collab/coll.htm.

    Adjustment loans have a short-term focus (1 to 3 years), and provide quick-disbursing assistance to countries with external financing needs, to support structural reforms in a sector or the economy as a whole. They support the policy and institutional changes needed to create an environment conducive to sustained and equitable growth.

    Investment loans have a long-term focus (5 to 10 years) and finance goods, works, and services in support of economic and social development projects in a broad range of sectors.

    Programmatic loans are arranged as a series of operations that support a medium-term government program of policy reforms and institution building.

    Employment in subnational government has been increasing (particularly in Latin America), partially offsetting the reduction in central government staffing.

    See “Strengthening IMF-World Bank Collaboration on Country Programs and Conditionality” (August 23, 2001) http://www.imf.org/external/np/pdr/cond/2001/eng/collab/coll.htm.

    See “Strengthening IMF-World Bank Collaboration on Country Programs and Conditionality” (August 23, 2001) http://www.imf.org/external/np/pdr/cond/2001/eng/collab/coll.htm.

    These core civil service reform operations are defined as those that directly target employment, pay, and working practices of civilian central government, excluding reforms that affect the employment arrangements for professional health personnel, primary and secondary school teachers, police, armed forces, and staffs of state-owned enterprises. See http://www1.worldbank.org/publicsector/civilservice/cross.htm#l for further details of employment categories.

    Two important reforms have been enacted. In 1987 state hiring of all university graduates was abolished. In education (a stronghold of the unions), a reform was enacted so that new hires are contract employees (with wages a little more than half those in the civil service), who are offered a career perspective through late entry to the civil service (after 10 years of service and based on a competitive exam).

    23.

    Wage and Salary Structure: Final Report, Team, June 1997, for the Institutional Development for Public Administration project.

    Index

    Note: f indicates figures, n indicates notes, and t indicates tables

    • accountability, 4f, 5t, 8-9, 24t, 50, 53

    • acquired immune deficiency syndrome (AIDS), 73

    • adaptable program loans, 33, 34

    • adjustment loans and operations, 12, 21, 23-24,79nl3

    • Africa, 12,14

    • Albanians, 43

    • armed forces, 6t, 7t,37, 38, 60

    • Asian Development Bank (AsDB), 35, 37

    • balance of payments, 56

    • Bank’s Basic Education Subsector Investment Program Support Project, Zambia, 75

    • benchmarks, 11, 22t

      • Benin, 30

      • Bolivia, 34

      • Cambodia, 39

      • Macedonia, FYR, 44

      • Mali, 48

      • Mongolia, 52

      • Pakistan, 57

      • Russian Federation, 62

      • for structural reforms, 11, 21-22,79n11

      • Tanzania, 67

      • Yemen, Rep. of, 72

      • Zambia, 77

    • Benin, 5t, 6t, 7t, 13, 26-30

    • Bolivia, 5t, 6t, 7t, 9,11, 31-34

    • Cambodia, 5t, 6t, 7t, 35-39

    • central government employment, decline in, 14, 79n16

    • Chama Cha Mapinduzi of Tanzania, 64

    • civil service fund (CSF), 70

    • Civil Service Statute of 1999, Bolivia, 32 civilian central government

      • Benin, 26, 27f

      • Bolivia, 31f

      • Cambodia, 35

      • Mali, 45

      • Mongolia, 49

      • Pakistan, 53

      • Russian Federation, 58

      • Tanzania, 63, 64

      • wage bill,6t

      • Yemen, Rep. of, 68-70

      • Zambia, 73

    • collaboration in reform, 16-20

    • community-driven approaches, 12,13,23

    • compression ratios, 40

    • conditionalities, 18, 20, 21, 22t, 23

      • Bank-supported programs, 12,16

      • Bolivia, 34

      • Yemen, Rep. of, 72

    • corruption, 9,13,14, 48

    • Country Assistance Strategy (CAS), 17

    • CSF. see civil service fund (CSF)

    • Customs Administration, Bolivia, 33

    • debt rescheduling, 56

    • decentralization, 12,13, 23, 63

    • defense spending, 55

    • development spending, 55-56

    • devolution, 53, 57

    • division of labor, between Bank and fund, 11

    • Economic Capacity Building, 38

    • EFFs. see Extended Fund Facilities (EFFs)

    • employment, 7t, 12, 30

      • advancement in, 26

      • career structure, 4f,5t

      • core civil service operations, 21-22, 79-80n21

      • decreases in, 67

      • ghost workers, 11, 73, 79nl0

      • hiring freeze, 70

      • increases in, 64

      • reductions in, 6, 8,11, 44, 55

      • Russia, 58, 59f

      • sector-specific, 42, 68

      • state service positions, 58, 60

      • subnational government, 79nl6

      • Tanzania, 67

      • types of, 8, 78n6

      • university graduates, 80n22

      • see also government employment

    • enhanced structural adjustment facility (ESAF), 43

    • expenditures, 4, 6t

      • Macedonia, FYR, 40

      • Mongolia, 51

      • see also wage bills

    • Extended Fund Facilities (EFFs), 11, 22t, 43,79n9

    • Fonds National de Retraite du Benin, 30

    • Fund Article IV, 17

    • ghost workers, 11, 73, 79nl0

    • goals of reform, 3, 4-9

    • Governance Action Plan, Cambodia, 39

    • government employment, 59f

      • Benin, 27f

      • Bolivia, 31f

      • Cambodia, 36f

      • Macedonia, FYR, 41f

      • Mali, 45f

      • Mongolia, 49f

      • Pakistan, 54f

      • as percent of total population, 6, 7t, 8,78n5

      • Tanzania, 64f

      • Yemen, Rep. of, 69f

      • Zambia, 74f

      • see also employment; wages

    • Government of Pakistan, see Pakistan

    • gross domestic product (GDP)

      • tax revenues as percent of, 33

      • wage bill as percent of, 4, 6t, 37

      • wages relative to per capita GDP, 8, 78n7

      • see also wage bills; wages

    • IFI. see international financial institutions (IFIs) institutional concerns

      • Benin, 26

      • Bolivia, 32

      • Cambodia, 35

      • Macedonia, FYR, 40, 42

      • Mali, 46

      • Mongolia, 50

      • Pakistan, 53

      • Russian Federation, 58

      • Tanzania, 64

      • Zambia, 73

    • institutional reforms

      • Benin, 28-29, 80n22

      • Bolivia, 32-33

      • Cambodia, 35, 37

      • Macedonia, FYR, 43

      • Mali, 46-47

      • Mongolia, 51

      • Pakistan, 53, 55

      • Russian Federation, 60

      • Tanzania, 64-65

      • Yemen, Rep. of, 70

      • Zambia, 75

    • interest payments on debt, 55

    • International Development Association, 44

    • international financial institutions (IFIs), 38, 60, 62

    • International Standards Organization (ISO), 33

    • investment loans and operations, 12-13, 21, 23-25, 79nl0

    • Joint Guidelines, 1

    • labor force, 8,11, 37, 64

    • see also employment; government employment local governments (LGOs), 53

    • Macedonia, FYR, 5t, 6t, 7t, 40-44

    • macrofiscal concerns, 3-4

      • Bank-Fund collaboration in, 14-20

      • Benin, 29-30

      • Bolivia, 33

      • Cambodia, 37-38

      • effectiveness of interventions, 14-15

      • Macedonia, FYR, 44

      • Mali, 47

      • Pakistan, 55-56

      • reform goals and, 3, 4-8

      • Russian Federation, 61-62

      • Tanzania, 65-66

      • Yemen, Rep. of, 70-72

      • Zambia, 75-76

    • Mali, 5t, 6t, 7t, 45-48

    • medium-term expenditure framework (MTEF), 77

    • merit-based civil service, 58

    • military demobilization, Cambodia, 37, 38

    • military personnel, 60

    • Ministry of Civil Service and Administrative Reform, Yemen, Rep. of, 68

    • Mongolia, 5t, 6t, 7t, 9, 49-52

    • National Tax Service, Bolivia, 11, 33, 34

    • objectives of reform, 4f, 10,15

    • off-budget financing, 43

    • Organisation for Economic Co-operation and Development (OECD), 42

    • Pakistan, 5t, 6t, 7t, 13, 53-57

    • payroll systems, 11, 70, 79nl0

    • Mongolia, 50

    • Pakistan, 53

    • Zambia, 75

    • Peace Framework Agreement, 43

    • pension systems, 5t, 11, 79n11

      • Benin, 30

      • issues effecting sustainability of, 5t,6

      • Pakistan, 55

      • Yemen, Rep. of, 72

      • Zambia, 73

    • PER.see Public Expenditure Reviews (PERs)

    • performance criteria, 22t

    • Performance Improvement Fund, 65

    • personnel management, 26, 28, 42

    • PMGs. see Priority Mission Groups (PMGs)

    • political patronage, 9, 32

    • politics

      • Bolivia, 32, 33

      • Cambodia, 37

      • incentives for reform and, 12-13

      • Macedonia, FYR, 42

      • Tanzania, 64

    • Poverty Reduction Growth Facility (PRGF) programs, 11, 22t, 78n8

      • Benin, 30, 34

      • Bolivia, 33

      • Cambodia, 38-39

      • Macedonia, FYR, 43, 44

      • Mali, 48

      • Mongolia, 51-52

      • Pakistan, 56-57

      • Russian Federation, 62

      • Tanzania, 66

      • Yemen, Rep. of, 72

      • Zambia, 76-77

    • Poverty Reduction Strategy Paper (PRSP), 17-18, 66

    • Poverty Reduction Support Credits (PRSC), 12

      • Benin, 30

      • Bolivia, 33

      • Cambodia, 38, 39

      • Macedonia, FYR, 44

      • Mali, 48

      • Mongolia, 51-52

      • Pakistan, 56-57

      • Russian Federation, 62

      • Tanzania, 66

      • Yemen, Rep. of, 72

      • Zambia, 76-77

    • PRGF. see Poverty Reduction Growth Facility (PRGF)

    • Priority Mission Groups (PMGs), 37

    • privatization, 65

    • programmatic loans and operations, 12, 21, 79nl5

    • project implementation units, 65

    • PRSC. see Poverty Reduction Support Credits (PRSC)

    • PRSP. see Poverty Reduction Strategy Paper (PRSP)

    • PSCAP. see Public Sector Capacity Building Project (PSCAP)

    • Public Expenditure Reviews (PERs), 65

    • Public Sector Capacity Building Project (PSCAP), 75, 77

    • Public Sector Management Adjustment Credit/Loan, 44

    • Public Sector Reform Agenda, Mongolia, 51

    • Public Service Commission, 13

    • public services, 3, 53, 66

    • Putin, Vladimir, 60

    • resource allocation, Mali, 48

    • retirement, 28, 46, 47, 72

    • Russian Federation, 58-62

      • issues raised in Bank-Fund programs, 5t

      • public employment in,7t

      • wage bill, 6t

    • salaries, see wages

    • SBAs. see stand-by arrangements (SBAs)

    • selected accelerated salary enhancement (SASE), 65

    • service delivery, 4f, 5t, 8-9, 24t

      • Cambodia, 38-39

      • demand for better, 13

      • Mali, 48

      • Mongolia, 51

      • Pakistan, 53

      • Tanzania, 67

    • spending, 4, 6

    • stand-by arrangements (SBAs), 22t, 56

    • state service positions, 58, 60

    • Structural Adjustment Credit for Pakistan, 57

    • structural concerns, 3-4

      • Bank-Fund collaboration in, 14-20

      • Bank-supported programs, 12-13

      • benchmarks for, 11, 21-22, 79nll

      • Benin, 26, 28

      • Bolivia, 32

      • Cambodia, 35

      • effectiveness of interventions, 14-15

      • Macedonia, FYR, 40

      • Mali, 46

      • Mongolia, 50

      • Pakistan, 53, 57

      • Russian Federation, 58

      • Tanzania, 64

      • Zambia, 73

    • Tanzania, 5t, 6t, 7t,63-67

    • taxes, 33, 72

    • technical assistance, 66, 72

    • Technical Cooperation Action Plan, 38

    • tehsil,53

    • unified tariff schedule wage system, 60

    • United Kingdom, 75

    • United Nations Development Programme (UNDP), 35

    • wage bills, 4,5t, 6t

      • Benin, 29-30

      • Bolivia, 34t

      • Cambodia, 37, 38t

      • issues related to, 11

      • Macedonia, FYR, 40, 43t

      • Mali, 47t

      • Mongolia, 51, 52t

      • Pakistan, 55, 56t

      • Russian Federation, 60, 61t

      • Tanzania, 64, 66t

      • Yemen, Rep. of, 71t

      • Zambia, 73,76t

    • wages, 4f, 5t, 24t

      • Benin, 28, 29-30

      • Bolivia, 32t

      • Cambodia, 35, 37

      • compression of wage scale, 64

      • increases in, 71, 73, 76

      • levels of, 8

      • Macedonia, FYR, 40, 42

      • Mali, 46t

      • Mongolia, 50, 50t, 51

      • Pakistan, 53, 55t

      • private vs. public sector, 68, 70

      • Russian Federation, 58

      • total compensation, 40

      • Yemen, Rep. of, 68, 70t

      • Zambia, 73, 75t

    • West African Economic and Monetary Union, 47

    • Republic of Yemen, 15t, 6t, 7t, 11, 68-72

    • Zambia, 5t, 6t, 7t, 73-77

    A workshop hosted by the World Bank and the IMF in September 2001 provided a forum for those organizations to review the effectiveness of Bank-Fund advice and programs on civil service reform—and to propose ways to improve joint efforts in coming years. Workshop participants reviewed case studies on the size and structure of the civil service in 11 countries: Benin, Bolivia, Cambodia, the former Yugoslav Republic of Macedonia, Mali, Mongolia, Pakistan, Russia, Tanzania, the Republic of Yemen, and Zambia. They also considered macrofiscal and structural outcomes of Bank-Fund work in those countries.

    Civil Service Reform: Strengthening World Bank and IMF Collaboration provides background materials prepared by World Bank and IMF country teams for use at the workshop, presents conclusions reached that day, and identifies challenges to achieving civil service reform that is competent, sustainable, and accountable. Though not a primer on best practices, Civil Service Reform presents an overview of major objectives, examines recent Bank- and Fund-supported interventions, and proposes ways to reduce poverty and achieve macroeconomic stability through the effective reform of civilian central government.

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