- International Monetary Fund
- Published Date:
- June 2002
© 2002 The International Bank for Reconstruction and Development/The World Bank
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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.
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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 Abbreviations
Adaptable program loan
Asian Development Bank
Balance of payments
Basic Education Subsector Investment Program Support Project (World Bank)
Country Assistance Strategy
Chama Cha Mapinduzi (Revolutionary Party) of Tanzania
Civil service fund
Extended Fund Facility
Enhanced structural adjustment facility
Fiscal Affairs Department
Fonds National de Retraite du Benin
Gross domestic product
Government of Pakistan
Heavily Indebted Poor Countries
International financial institution
International Monetary Fund (or the Fund)
Local currency units
Local governments (Pakistan)
Ministries, departments, and agencies
Ministry of the civil service (Benin)
Ministry of Civil Service and Administrative Reform (Republic of Yemen)
Ministry of finance
Medium-term expenditure framework
Medium-term pay strategy
Public Expenditure Review
Project implementation unit
Priority Mission Group
Poverty Reduction and Growth Facility
Poverty Reduction Support Credit
Poverty Reduction Strategy Paper
Public Sector Capacity-Building Project (World Bank)
Public Sector Management Adjustment Credit /Loan (for the former Yugoslav Republic of Macedonia)
Selected accelerated salary enhancement
Technical Cooperation Action Plan
Unified tariff schedule