Front Matter

Front Matter

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.

    The World Bank cannot guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The boundaries, colors, denominations, and other information shown on any map in this work do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries.

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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



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

    March 2002


    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


    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)


    Information technology


    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


    Stand-by arrangement


    Technical Cooperation Action Plan


    Unified tariff schedule

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