1. Administrative and Civil Service Reform: An Overview
Core Course on Governance and Anticorruption
PRMPS & WBIGP
Presented by:
Gary Reid & Ranjana Mukherjee
ACSR Thematic Group
Public Sector Group
Presented to:
February 14, 2005
The World Bank

2. Gary Reid and Ranjana Mukherjee
The Governance Triad
Politicians/
Policymakers
Delegation of
Implementation
Internal Accountability
Delegation and Voice
Political Accountability
Public Goods and Services
Client Power/Social Accountability
Citizens
Bureaucrats
February 14, 2005
Gary Reid and Ranjana Mukherjee

3. ACSR: Reforming the infrastructure of the public administration
Policy management
Human resource management
Administrative structure and functions
February 14, 2005
Gary Reid and Ranjana Mukherjee

4. Gary Reid and Ranjana Mukherjee
Policy management
Objectives
Strategic prioritization: Policy decisions are consistent with the Government’s strategic priorities.
Trade-offs are faced: Policy decisions take into account social, economic and fiscal trade-offs posed by competing policy objectives.
Implementability: Policies stand a reasonable chance of being implemented as intended.
Learning from experience: The social, economic and fiscal impacts of policy decisions are continuously monitored and assessed; and the results of those assessments are employed to improve subsequent policy decisions and their implementation.
Strategic prioritization: Romania policy instability.
Trade-offs are faced: Francophone Africa education example. Fewer, higher quality, more expensive teachers vs. more, lower quality, less costly teachers.
Implementability:Albania CSR (narrow scope). Political resistance was not insurmountable. Dramatic salary increases were fiscally feasible.
Learning from experience: Albania recruitment & selection “exceptions” requests tracking. Also, R&S process circumvention by Ministers.
February 14, 2005
Gary Reid and Ranjana Mukherjee

5. Making policy together - ministers and bureaucrats
Bureaucrats & policies
February 14, 2005
Gary Reid and Ranjana Mukherjee

6. Policy management (cont.)
How?
Rules and procedures governing the policy formulation process.
Organizational arrangements required for effective implementation of those rules and procedures; i.e., assignment of functional responsibilities and authority, as well as creation of organizational structures, staffing and capacities consistent with those functional responsibilities.
Resource assignments to the organizational units required for effective policy formulation.
Rules and procedures: ex?
Organizational arrangements.ex?
Resource assignments ex?
Policies really made
February 14, 2005
Gary Reid and Ranjana Mukherjee

7. Human resource management
Objectives
Ensure depoliticized, meritocratic personnel management
Attract and retain required human capital skills and talent.
Ensure a fiscally sustainable wage bill.
Motivate staff to achieve organizational objectives.
Provide needed complementary inputs
Meritocratic management: Albania CSR
Attract & retain: Albania CS pay reform
Fiscally sustainable: Albania narrow scope of CS
Motivate staff: Not yet accomplished in Albania. But Ceara example.
Complementary inputs: ?
February 14, 2005
Gary Reid and Ranjana Mukherjee

8. HRM: Meritocratic personnel management
Recruitment and selection procedures
Due process protections
Personnel performance evaluation process
Promotions processes
Albania example:
Transparent and competitive recruitment and selection procedures, including tiered screening. Albania ex.
Due process protections on major personnel management actions. Albania ex.
Personnel performance evaluation process that (a) encourages evaluators to make reliable, unbiased ratings, and (b) links performance criteria for individual staff to the policy and program objectives of the unit for which they work. Ceara ex.Nurses’ role in evaluating these local health care delivery staff. (Doctors’ didn’t do it.)
Transparent and competitive promotions processes that include performance evaluations among their criteria.India ex.
February 14, 2005
Gary Reid and Ranjana Mukherjee

9. HRM: Attract and retain staff
Provide attractive remuneration
Competitive remuneration structure.
Transparent, rule-based, human capital-linked remuneration.
Decompressed salary structure.
Provide non-financial advantages to public employees
Opportunities for human capital accumulation
Opportunities for career growth
Recognition for a job well done
Due process protections
Tenure protections
Provide attractive remuneration
Remuneration structure ensures consistency across skill-sets in the competitiveness of public sector remuneration with relevant domestic private sector comparators. Bahrain, Albania
Total individual remuneration is dominated by transparent, rule-based, human capital-linked elements of remuneration. Singapore
Structure of salaries allows for significant salary growth over one’s career, for positions in which it is important for the public administration to nurture a cadre of career staff; I.e., the civil service. WB (20:1)
Provide non-financial advantages to public employees
Opportunities for human capital accumulation: Korean SES, Venezuela, Romania
Opportunities for career growth: U.S. SES
Recognition for a job well done: Guyana
Due process protections: Albania, Public Service Commissions
Tenure protections: Tradeoffs posed. Romania
February 14, 2005
Gary Reid and Ranjana Mukherjee

10. HRM: Motivate staff to achieve organizational objectives
Focus organizational units on agreed objectives
Focus staff on organizational objectives
Nurture staff pride in their work
Focus organizational units on agreed objectives: Central Banks, Securities and Exchange Commissions, Revenue authorities (Tax, Customs)
Establish clear objectives
Continuously gather feedback on progress in achieving objectives
Continually assess what’s working, what’s not and why
Reward units both for performance and for effort
Focus staff on organizational objectives: Ceara
Performance evaluation process built around organizational objectives
Promotions linked to performance evaluations
Salary increments based, in part, on performance evaluations (limited applicability)
Performance bonuses (limited applicability)
Nurture staff pride in their work: Ceara
Informal encouragement and support from managers
Develop a sense of mission for the unit
Design work processes so that staff can see how their own effort contributes to achieving organizational objectives
Facilitate regular client feedback
February 14, 2005
Gary Reid and Ranjana Mukherjee

11. HRM: Provide required complementary inputs
Capital (facilities, equipment)
Operations and maintenance (recurrent cost items)
Capital (facilities, equipment):
Operations and maintenance (recurrent cost items):
February 14, 2005
Gary Reid and Ranjana Mukherjee

12. HRM: Ensure a fiscally sustainable wage bill
Adequate control over wage-bill-determining policies and parameters
Adequate control over individual staffing and remuneration-setting decisions
Slides on wage bill per GDP and public employment per capita
Adequate control over wage-bill-determining policies and parameters:
Staffing structure authorization procedures require clearances by central authorities responsible for maintaining sound fiscal policies (e.g., Ministry of Finance).
Remuneration structures subject to clearance by central authorities responsible for maintaining sound fiscal policies.
Employment monitoring system linked to payroll system
Adequate control over individual staffing and remuneration-setting decisions
Individual hiring decisions subject to clearance by central authorities responsible for maintaining sound fiscal policies (e.g., Ministry of Finance).
Individual salary setting decisions subject to clearance by central authority responsible for integrity of salary setting system (e.g., Department of Public Administration or similar body).
February 14, 2005
Gary Reid and Ranjana Mukherjee

13. Administrative structure and functions
Size of public employment
Shape of public employment
Building blocks of government
Branches of government
Ministries and Departments
Arms-length agencies within the executive branch
Watchdog agencies
Administrative decentralization
Size of public employment: See slide. Practice varies across regions. <3% is generally decent; >7% is worrisome.
Shape of public employment: see picture. Bad practice: 80% in support and unskilled positions.
Building blocks of government
Branches of government (3)
Ministries and Departments: Hierarchical; budget controlled by Ministry; HRM practices governed by CSL or similar legal framework governing the public administration.
Arms-length agencies within the executive branch: Semi-contractual (rather than hierarchical) relationship between a Ministry and the agency, reflecting some sort of performance agreement; greater managerial autonomy; personnel management typically governed by Labor Code or some other legal framework distinct from the CS Law.
Watchdog agencies: Oversight of various aspects of executive branch behavior (e.g., Ombudsman, SAI, Civil Service Commission); Typically report to Parliament. Management typically governed by special legislation specific-to the agency. Budget set by Parliament rather than by Government.
Administrative decentralization:
Structure of government
February 14, 2005
Gary Reid and Ranjana Mukherjee

14. Government Employment, as % of population
Early 1990s
Source: World Bank Policy Research Working Paper 1806
February 14, 2005
Gary Reid and Ranjana Mukherjee

15. Central Government Wages & Salaries
Early 1990s
Source: World Bank Policy Research Working Paper 1806
February 14, 2005
Gary Reid and Ranjana Mukherjee

16. Gary Reid and Ranjana Mukherjee
February 14, 2005
Gary Reid and Ranjana Mukherjee

17. Gary Reid and Ranjana Mukherjee
Arms-length agencies within the executive branch: New Public Management debate
Developing country model (revenue generation & cost recovery) different from U.K. model (better service delivery)
Hard Agencies in Soft States
Parent departments’ capacity
Audit
Public Service traditions
February 14, 2005
Gary Reid and Ranjana Mukherjee

18. Functions that tend to be devolved early (intermediate decentralizers)
More Important Functions
Less Important Functions
Promotion
Directing & supervising activities & tasks
Conducting evaluations
Controlling overall staff numbers
Transfers within LGs
Paying staff from its own budget
Recognition as the formal employer
These functions are arguably easier to do; while important, significant intervention may not be necessary for these to happen
Source: Evans, 2004
February 14, 2005
Gary Reid and Ranjana Mukherjee

19. Gary Reid and Ranjana Mukherjee
Q & A
February 14, 2005
Gary Reid and Ranjana Mukherjee