Administrative and Civil Service Reform: An Overview

1. The World Bank 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 February 14, 2005 Presented to:

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

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

4. 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. Gary Reid and Ranjana Mukherjee

5. Making policy together - ministers and bureaucrats Bureaucrats & policies 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. Policies really made 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 Gary Reid and Ranjana Mukherjee

8. HRM: Meritocratic personnel management • Recruitment and selection procedures • Due process protections • Personnel performance evaluation process • Promotions processes 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 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 Gary Reid and Ranjana Mukherjee

11. HRM: Provide required complementary inputs • Capital (facilities, equipment) • Operations and maintenance (recurrent cost items) 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 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 Structure of government Gary Reid and Ranjana Mukherjee

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

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

16. Gary Reid and Ranjana Mukherjee

17. 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 Gary Reid and Ranjana Mukherjee

18. Functions that tend to be devolved early (intermediate decentralizers) • These functions are arguably easier to do; while important, significant intervention may not be necessary for these to happen Source: Evans, 2004 Gary Reid and Ranjana Mukherjee

19. Q & A Gary Reid and Ranjana Mukherjee