Civil service reform: strengthening World Bank and IMF by World Bank, International Monetary Fund

By World Bank, International Monetary Fund

In September 2001, employees from the realm financial institution and the overseas financial Fund met with the target of strengthening collaboration among the 2 agencies in initiatives of civil carrier reform. This bolstered collaboration could have key merits in making sure consistency among the conflicting ambitions of the 2 organisations, developing real looking ambitions in the reform procedure, and preserving a center set of salary and employment information. The important end arrived at used to be that international financial institution and IMF employees may be undertaking collaboration previous within the reform method. to lead the collaboration, six foundations have been pointed out. those comprise: strengthen a medium-term financial framework; foster nationwide possession by means of making reforms politically possible; concentration and streamline conditionality; agree on sequencing and timing of reforms; and advance information assortment. those principals may be validated for effectiveness in different concentration nations.

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6 Cambodia: The Main Dimensions of the Public Sector Wage Bill (all units are local currency, 1999) Total Civilian Central Government Wage Bill (millions) Armed Forces (defense and security) Wage Bill (millions) Total Civilian Central Gov’t. 4 11,470,000 1,033,802 1,847,000 a. LCU is local currency unit. Sources: IMF RED tables; and WB World Development Indicators database for population. A broad spectrum of international financial institution (IFI) assistance to macrofiscal reform is covered by the Fund under a three-year Technical Cooperation Action Plan (TCAP) initiated in early 2001 and by the Bank through an Economic Capacity Building project and grant assistance.

This places the country in the bottom third of a set of Central and Eastern European comparator countries (Albania, Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, the Slovak Republic, and Turkey). However, FYR Macedonia outstrips other Central and Eastern European countries in terms of general government wage expenditures relative to both total expenditures and GDP. The General Government Wage Bill is significantly underestimated because many of the line ministries supplement wage payments from their special revenue funds, which are not recorded in either the central or general government accounts.

Most staff are hired to position rather than being promoted. While there are important advantages in permitting and encouraging competition for open positions, the effective absence of reasonable prospects for career advancement reflecting higher salaries undermines the public sector’s capacity to attract and retain qualified and highly motivated staff. It does not appear that central authorities exercise much oversight of the personnel management authority exercised by line ministries, nor do there appear to be particularly effective mechanisms for staff to challenge personnel management actions.

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