Front Matter

Front Matter

Author(s):
International Monetary Fund
Published Date:
June 2002
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    © 2002 The International Bank for Reconstruction and Development/The World Bank

    1818 H Street, NW

    Washington, DC, 20433, USA

    All rights reserved.

    Manufactured in the United States of America

    First printing June 2002

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    A discussion paper prepared by the Public Sector Group of the World Bank’s PREM Network and the Fiscal Affairs Department of the IMF.

    The findings, interpretations, and conclusions expressed here are those of the authors and should not be attributed in any manner to the World Bank or the IMF, to their affiliated organizations, or to members of their Boards of Executive Directors, or the countries they represent.

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    Library of Congress Cataloging-in-Publication Data

    Civil service reform: strengthening World Bank and IMF collaboration / World Bank, International Monetary Fund.

    • p. cm. -(Directions in development)

    Includes bibliographical references.

    ISBN 0-8213-5095-1

    1. International Monetary Fund. 2. World Bank. 3. International finance. 4. Development banks. I. World Bank. II. International Monetary Fund. III. Series.

    HG3881.5. W57 C478 2001

    351—dc21

    2002016816

    Cover photo by Adalberto Pacheco

    Contents

    Foreword

    Civil service reform is often essential to bring about governance improvements that are needed for sustainable poverty reduction. On September 6, 2001, staff of the World Bank and International Monetary Fund (IMF, or Fund) met at a workshop co-sponsored by the IMF’s Fiscal Affairs Department (FAD) and the Public Sector Group of the World Bank’s Poverty Reduction and Economic Management (PREM) Network to discuss the support for civil service reform offered by their respective institutions. Several key conclusions emerged from that workshop. First, strengthened collaboration between the World Bank and the IMF should ensure consistency between the sometimes-conflicting goals of short-term fiscal discipline and longer-term structural reforms supported by Fund and Bank programs. Second, realistic objectives embedded in a medium-term fiscal framework, explicit assumptions about sequencing and timing of reforms, and continuing assessment of the underlying political feasibility of reforms are crucial for effective civil service reform. Finally, the maintenance of a minimum core set of wage and employment data is indispensable to have a full understanding of the public sector and its potential maladies.

    The workshop was organized in response to concerns raised during a joint trip to Africa in 2001 by the World Bank president and the IMF managing director. Clearly, efforts to support civil service reform, with some notable exceptions, had not been very successful over the years, particularly in poor countries. As a result, FAD and PREM decided to review the experiences of Bank-Fund advice to countries in the area of civil service reform, and to draw lessons for the future. The workshop was organized in the context of other discussions aimed at strengthening Bank-Fund collaboration on country programs and streamlining conditionality.

    About 60 staff, including managers and country teams from the two institutions, participated in the discussions. In advance of the workshop, an issues paper was prepared by Bank and Fund staff to guide the discussions. 1 The present paper includes the background material prepared for the workshop, as well as the resulting conclusions and next steps proposed.

    Teresa Ter-MinassianCheryl Gray
    Director, Fiscal Affairs DepartmentDirector, Public Sector Group
    International Monetary FundPoverty Reduction and
    Economic Management Network

    March 2002

    Acknowledgments

    This paper was prepared by the staffs of the Public Sector Group of the World Bank and the FAD of the IMF, under the direction of Cheryl Gray, then Public Sector Director in the World Bank and Sanjeev Gupta, Assistant Director of the IMF FAD.

    The primary authors were Nick Manning and Jeffrey Rinne, PREM, World Bank; and Sanjeev Gupta, Calvin McDonald, Gabriela Inchauste, and Juan Pablo Cordoba, FAD, IMF. Amar Bhattacharya, Stefan Koeberle, Helen Sutch, and Ulrich Zachau of the World Bank made valuable contributions.

    The preparation of the paper was made possible by the contributions of country teams in the Bank and the Fund who provided the detailed background material for the case studies. Key contributions were received from:

    World BankIMF
    BeninMouhamadou Drame,Cyrille Briaricon,
    Catherine M. Laurent,Fabien Nsengiyumva
    Claude Leroy-Themeze
    BoliviaPablo AlonsoWayne Lewis,
    Maria Gonzalez
    CambodiaSu Yong Song,Thomas Rumbaugh,
    Toshi KatoPhilippe Marciniak
    FYR of MacedoniaPascale Kervyn deBiswajit Banerjee,
    Lettenhove, Gary ReidJuan Zalduendo
    MaliEzzeddine Moudoud,Dhaneshwar Ghura,
    Mohamed A. Toure,Diarietou Gaye
    Christina A. Wood
    MongoliaVera SongweLazaros Molho,
    Vincent Moissinac
    PakistanAhmad Ahsan,Klaus Enders,
    Christine AllisonGunther Taube,
    Valeria Fichera
    Russian FederationNeil ParisonThomas Laursen,
    Ali Mansoor
    TanzaniaDenyse MorinJurgen Reitmaier,
    Harry Snoek
    Republic of YemenLinda van Gelder,Edward Gardner,
    Amine Khene,David Moore
    Giulio de Tommaso
    ZambiaMushiba Nyamazana,Robert Sharer,
    Harry GarnettKoshy Mathai

    Suzanne Alavi (FAD, IMF) and Claudia Nolan (PREM, World Bank) provided administrative support for organizing the workshop. Kim Kelley, with the World Bank’s Office of the Publisher, was the production editor for this publication.

    Acronyms and Abbreviations

    APL

    Adaptable program loan

    AsDB

    Asian Development Bank

    BOP

    Balance of payments

    BESSIP

    Basic Education Subsector Investment Program Support Project (World Bank)

    CAS

    Country Assistance Strategy

    CCM

    Chama Cha Mapinduzi (Revolutionary Party) of Tanzania

    CSF

    Civil service fund

    EFF

    Extended Fund Facility

    ESAF

    Enhanced structural adjustment facility

    FAD

    Fiscal Affairs Department

    FNRB

    Fonds National de Retraite du Benin

    GDP

    Gross domestic product

    GoP

    Government of Pakistan

    HIPC

    Heavily Indebted Poor Countries

    IFI

    International financial institution

    IMF

    International Monetary Fund (or the Fund)

    IT

    Information technology

    LCU

    Local currency units

    LGO

    Local governments (Pakistan)

    MDAs

    Ministries, departments, and agencies

    MoCS

    Ministry of the civil service (Benin)

    MOCSAR

    Ministry of Civil Service and Administrative Reform (Republic of Yemen)

    MoF

    Ministry of finance

    MTEF

    Medium-term expenditure framework

    MTPS

    Medium-term pay strategy

    PER

    Public Expenditure Review

    PIU

    Project implementation unit

    PMG

    Priority Mission Group

    PRGF

    Poverty Reduction and Growth Facility

    PRSC

    Poverty Reduction Support Credit

    PRSP

    Poverty Reduction Strategy Paper

    PSCAP

    Public Sector Capacity-Building Project (World Bank)

    PSMAC

    Public Sector Management Adjustment Credit /Loan (for the former Yugoslav Republic of Macedonia)

    SASE

    Selected accelerated salary enhancement

    SBA

    Stand-by arrangement

    TCAP

    Technical Cooperation Action Plan

    UTS

    Unified tariff schedule

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