- International Monetary Fund
- Published Date:
- June 2002
© 2002 The International Bank for Reconstruction and Development/The World Bank
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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.
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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.
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
Cover photo by Adalberto Pacheco
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-Minassian||Cheryl Gray|
|Director, Fiscal Affairs Department||Director, Public Sector Group|
|International Monetary Fund||Poverty Reduction and|
|Economic Management Network|
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:
|Benin||Mouhamadou Drame,||Cyrille Briaricon,|
|Catherine M. Laurent,||Fabien Nsengiyumva|
|Bolivia||Pablo Alonso||Wayne Lewis,|
|Cambodia||Su Yong Song,||Thomas Rumbaugh,|
|Toshi Kato||Philippe Marciniak|
|FYR of Macedonia||Pascale Kervyn de||Biswajit Banerjee,|
|Lettenhove, Gary Reid||Juan Zalduendo|
|Mali||Ezzeddine Moudoud,||Dhaneshwar Ghura,|
|Mohamed A. Toure,||Diarietou Gaye|
|Christina A. Wood|
|Mongolia||Vera Songwe||Lazaros Molho,|
|Pakistan||Ahmad Ahsan,||Klaus Enders,|
|Christine Allison||Gunther Taube,|
|Russian Federation||Neil Parison||Thomas Laursen,|
|Tanzania||Denyse Morin||Jurgen Reitmaier,|
|Republic of Yemen||Linda van Gelder,||Edward Gardner,|
|Amine Khene,||David Moore|
|Giulio de Tommaso|
|Zambia||Mushiba Nyamazana,||Robert Sharer,|
|Harry Garnett||Koshy 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 AbbreviationsAPL
Adaptable program loanAsDB
Asian Development BankBOP
Balance of paymentsBESSIP
Basic Education Subsector Investment Program Support Project (World Bank)CAS
Country Assistance StrategyCCM
Chama Cha Mapinduzi (Revolutionary Party) of TanzaniaCSF
Civil service fundEFF
Extended Fund FacilityESAF
Enhanced structural adjustment facilityFAD
Fiscal Affairs DepartmentFNRB
Fonds National de Retraite du BeninGDP
Gross domestic productGoP
Government of PakistanHIPC
Heavily Indebted Poor CountriesIFI
International financial institutionIMF
International Monetary Fund (or the Fund)IT
Local currency unitsLGO
Local governments (Pakistan)MDAs
Ministries, departments, and agenciesMoCS
Ministry of the civil service (Benin)MOCSAR
Ministry of Civil Service and Administrative Reform (Republic of Yemen)MoF
Ministry of financeMTEF
Medium-term expenditure frameworkMTPS
Medium-term pay strategyPER
Public Expenditure ReviewPIU
Project implementation unitPMG
Priority Mission GroupPRGF
Poverty Reduction and Growth FacilityPRSC
Poverty Reduction Support CreditPRSP
Poverty Reduction Strategy PaperPSCAP
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 enhancementSBA
Technical Cooperation Action PlanUTS
Unified tariff schedule