Prepared by Lorraine Ocampos
Even at the end of the 1988–99 civil conflict, the census of security forces carried out in the context of the demobilization, reinsertion, and reintegration program (DRRP) (see section D, para. 19) amounted to 12,595 (military, paramilitary, and militia), which represented about 1 percent of the population (see World Bank: “Implementation Completion Report of the Economic Rehabilitation and Recovery Credit,” December 2004).
Data for the 1991–2005 series were drawn from various publications and were adjusted for reporting inconsistencies. Inaccuracies are therefore unavoidable.
The compression ratio is the difference between the highest and the lowest salary (discarding the highest level if this concerns less than 1 percent of total effectives). For the assessment of compression rates this papers has only taken into account the wage part, leaving aside nonwage allowances since a breakdown between civil servants and military forces has not been available..
Guido De Weerd—expert in public administration hired in the context of the public administration reform project financed by the World Bank and other donors—reviewed the salary structure in Guinea-Bissau at the end of the 1990s (see section C, paras. 15–16). According to his findings a wage system with adequate incentives will have compression rates above 4 but lower than 10. The structural adjustment programs of the 1990s aimed at reaching a maximum compression ratio of 13.4:1.0 (see IMF: Public Expenditure Handbook, 1991; page 51).
The personnel structure, which is based on decree N° 2 of 1980, has 25 salary levels (in addition to 6 other higher political levels). The levels correspond to the letters A to Z and refer to positions (cargos).
This could also be explained by the fact that before the harmonization nonwage allowances were not accounted for in the salaries of civil servants while representing a large part of their salaries (60 percent in 2003) (Figure 9).
See footnote 4.
See IMF, Guinea-Bissau’s Selected Issues Paper and Statistical Appendix, November 2004.
Guido De Weerd, Commission de Réflexion Chargée de la Reforme du Système Salarial. République de Guinée-Bissau, Ministère de l’Économie et des Finances—Project Banque Mondiale de Gestion Économique, Décembre 1997, and Guido De Weerd, Éléments de Reforme du Système Salarial et du Régime du Personnel. Primature, Ministère de l’Administration Publique et du Travail, Ministère de l’Économie et des Finances. Project de Reforme de l’Administation Publique, Mars 2001.
According to De Weerd, this decompression level was considered appropriate to ensure normal payment of salaries and to avoid the creation of privileged islands.
According to De Weerd, countries that have preserved salary harmonization throughout the public sector have kept similar salary compression ratios between civil servants and militaries (De Weerd 2001, p. 81).
De Weerd 1997, page 80.
The Poverty Reduction and Growth Facility-supported program immediately got off track because of expenditure overruns. Consequently, part of the interim debt relief and assistance to the DRRP was suspended.
The program’s original budget amounted to US$19.6 million. As of end-2005 the disbursed amount was of US$9.5 million.
The size of the security forces was much smaller than initially reported (12,595 versus an initial estimation of 23,000). The program’s original objective was to reduce the size of the armed forces by some 12,000 soldiers, by demobilizing 5,000 ex-combatants by end-December 2001 and 7,000 more combatants either before reaching the HIPC completion point or not later than the end of 2003. (See World Bank,”Implementation Completion Report of the Economic Rehabilitation and Recovery Credit,” December 2004).
In countries were salaries are irregularly paid and pension systems are financially weak, government employees who reach retirement age are unwilling to leave the workforce, because they fear they will not receive their retirement gratuities and pensions. As a result, a large number of government employees who have reached retirement age remain on the payroll.