Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Modeling Civil Service Pay & Employment Strategy in East Asia Using the Civil Service Financial Model: A Rapid but Comprehensive Approach to Civil Service Reform Why does East Asia need civil service pay and employment reform? Most East Asian governments have managed their wage bills well over the last three decades Government wage bill as a % of GDP 12 10 China Indonesia Korea, Rep. Malaysia Philippines Thailand Vietnam 8 6 4 2 0 1970 1974 1978 1982 1986 1990 1994 Public sector employment levels have also been relatively well-managed in the region Total government employment as % of total population 1980-1998 for selected Asian countries China Indonesia Korea Malaysia Philippines Thailand Vietnam 6% 5% 4% 3% 2% 1% 0% 1980 1985 1990 1991 1992 1993 1994 1995 1996 1997 1998 The crisis highlighted the need for better civil services Need for performance orientation Remedy politicization and clientelism Need to professionalize bureaucracy Promote civil service accountability Merit-based recruitment and promotion Tight budgets place greater emphasis on ensuring pay and employment practices result in efficient service delivery Increased political voice, demands for accountability, and emphasis on reducing corruption The crisis has prompted a new look at improved civil service management How do we assess East Asian civil service management? The pace of modernization varies – most countries could do better Ratings of civil service management institutions Good practice criteria China Indonesia Korea, Malaysia Philippines Thailand Rep. of Politically neutral civil service Legislated, merit-based procedures Competitive pay Public consultation on priorities Specific legislation governing the civil service for personnel management Clearly defined institutions to develop and coordinate civil service policy Simple, monetized, transparent, and fair compensation and service standards Overall Note: Ratings are classified as High , Medium , and Low . Source: Nunberg, Reid, and Orac 1999. Given the tight, post-crisis fiscal constraints, progress on civil service management may require pay and employment fundamentals to be adjusted. How can governments navigate a sensible but timely course of reform? Macroanalysis to determine appropriate size and costs of the civil service The Civil Service Financial Model can provide an essential policy tool for governments wishing to plot a realistic civil service reform strategy Micro functional review to determine staffing and incentive levels in the civil service The Civil Service Financial Model 1 Plugs in desired attributes of future civil service 2 Reconciles with current empirical reality and sets targets 3 Models reform program of costs and timing for reaching goals Anyland: Reform Scenario A 0. 1 2 5000 4500 4000 3500 0. 1 3000 2500 2000 0. 08 1500 1000 500 0 GS1 GS2 GS3 GS4 GS5 GS6 GS7 GS8 GS9 GS10 GS11 GS12 GS13 GS14 0. 06 Employment – no change 0. 04 200000 180000 160000 140000 0. 02 120000 100000 80000 0 60000 1 998 1 999 2000 2001 2002 2003 2004 2005 2006 2007 2008 40000 20000 0 GS1 GS2 GS3 GS4 GS5 GS6 GS7 GS8 GS9 GS10 GS11 GS12 GS13 GS14 Salaries – increase to 90% of private sector levels over 10 years Personnel spending as a proportion of GDP increased from 2.25% to 2.75% Anyland: Reform Scenario B 5000 0. 1 4500 4000 0. 09 3500 3000 0. 08 2500 2000 0. 07 1500 1000 500 0. 06 0 GS1 GS2 GS3 GS4 GS5 GS6 GS7 GS8 GS9 GS10 GS11 GS12 GS13 GS14 0. 05 Employment – hiring freeze 3% attrition over 10 years 0. 04 200000 0. 03 180000 160000 0. 02 140000 120000 0. 01 100000 80000 0 60000 1 998 1 999 2000 2001 2002 2003 2004 2005 2006 2007 2008 40000 20000 0 GS1 GS2 GS3 GS4 GS5 GS6 GS7 GS8 GS9 GS10 GS11 GS12 GS13 GS14 Salaries – increase to 90% of private sector levels over 10 years Personnel spending as a proportion of GDP decreased from 2.25% to 1.5% Situation • Low wage bill (1.7% GDP) • Very low average wages (2.5 time less than national minimum wage) • No accurate information on remuneration, placement, skills of employees Problem Reform options • Pressure from a certain IFI to contain wage bill • World Bank solution: provide targets for salary adjustment, decompression, wage bill envelope and rightsizing options through modeling exercise offering options for different salary increase / rightsizing options • Higher salaries necessary to attract more skilled civil servants • This IFI’s solution: cut employment immediately Situation Problem • New country with no parameters • Setting civil service pay and employment rules is an arbitrary exercise • UN organization acting as interim government • Budget planning and pay and employment assumptions must be made Reform options • Determine wage bill envelope • Determine salary scale •Determine staffing numbers • Simulate pay and employment scenarios Government ends up with: • A tool to facilitate policy formulation • A vehicle for dialogue among key stakeholders • Ongoing capacity for pay and employment monitoring