robert p. beschel jr. lead public sector specialist (mnsed) riyadh, saudi arabia november 2009 mena...
TRANSCRIPT
Robert P. Beschel JrRobert P. Beschel Jr..
Lead Public Sector Specialist (MNSED)Lead Public Sector Specialist (MNSED)
Riyadh, Saudi ArabiaRiyadh, Saudi Arabia
November 2009November 2009
MENA Experience with MENA Experience with Public Sector Reform:Public Sector Reform:
A Survey of the A Survey of the LandscapeLandscape
Focus on Three AreasFocus on Three Areas
• Public Financial ManagementPublic Financial Management
• Civil Service ReformCivil Service Reform
• AnticorruptionAnticorruption
PFM Objectives are Relatively PFM Objectives are Relatively StraightforwardStraightforward
• Macroeconomic stability and fiscal sustainabilityMacroeconomic stability and fiscal sustainability
• Appropriate allocation between competing prioritiesAppropriate allocation between competing priorities
• Efficient and effective spendingEfficient and effective spending
• Effective control environment ensures fiscal probityEffective control environment ensures fiscal probity
Common PFM Challenges in Common PFM Challenges in MENAMENA
Budget FormulationBudget Formulation• Ensuring credibility of the budget/ Ensuring credibility of the budget/
making hard ceilings stickmaking hard ceilings stick
• Scope and comprehensiveness of the Scope and comprehensiveness of the budgetbudget
• Link between recurrent and investment Link between recurrent and investment budgetingbudgeting
• Multiyear frameworkMultiyear framework
• Strengthening budget classificationStrengthening budget classification
• Introducing performance orientationIntroducing performance orientation
• Greater budget transparency and Greater budget transparency and parliamentary scrutinyparliamentary scrutiny
Budget ImplementationBudget Implementation• Reducing ex-ante controls, while Reducing ex-ante controls, while
improving commitment controlsimproving commitment controls
• Improved virementImproved virement
• Better treasury operations and cash Better treasury operations and cash managementmanagement
• AFMIS systemsAFMIS systems
• Strengthening internal auditStrengthening internal audit
• Strengthening external audit, including Strengthening external audit, including more independent and transparent more independent and transparent reporting relationshipsreporting relationships
Bank Recently Analyzed Bank Recently Analyzed Sample of 10 MENA CountriesSample of 10 MENA Countries
• AlgeriaAlgeria
• EgyptEgypt
• IraqIraq
• JordanJordan
• LebanonLebanon
• MoroccoMorocco
• SyriaSyria
• TunisiaTunisia
• West Bank & GazaWest Bank & Gaza
• YemenYemen
• Comprise 71 percent of Comprise 71 percent of MENA’s population and MENA’s population and nearly half of its GDPnearly half of its GDP
• Different regions and levels Different regions and levels of Developmentof Development
• Represent a range of Represent a range of administrative traditionsadministrative traditions
•MENA & Global PEFA Averages
What Works and What What Works and What Doesn’t with PFM ReformDoesn’t with PFM Reform
Successful PFM Reforms
MixedLess Successful PFM
Reforms
Improving budget Improving budget classificationclassification
Improving budget Improving budget transparencytransparency
Reforms in tax and Reforms in tax and customscustoms
Enhance macro-fiscal capacityEnhance macro-fiscal capacity Budget integrationBudget integration Streamlining ex-ante control Streamlining ex-ante control
processes processes Commitment controlCommitment control Payroll managementPayroll management Treasury operationsTreasury operations Reform of accounting systemsReform of accounting systems Internal and external auditInternal and external audit
Medium term expenditure frameworkMedium term expenditure framework Improving budget scope and coverageImproving budget scope and coverage Introducing performance into the budgetIntroducing performance into the budget Procurement reformsProcurement reforms Large information technology projectsLarge information technology projects
Civil Service ReformCivil Service Reform
• LegislationLegislation
• Pay and EmploymentPay and Employment
• Machinery of Government (structure Machinery of Government (structure and business processes)and business processes)
• Human Resource ManagementHuman Resource Management
• Policy CoordinationPolicy Coordination
Common Problems in MENACommon Problems in MENA
• Governments are largeGovernments are large
• Pay is misaligned, w/ too many Pay is misaligned, w/ too many allowancesallowances
• Wrong sets of skillsWrong sets of skills
• Too many agencies with vague and Too many agencies with vague and overlapping mandatesoverlapping mandates
• Interagency coordination is poorInteragency coordination is poor
• Weak accountabilityWeak accountability
• Meritocracy vs. wastaMeritocracy vs. wasta
General Civilian Government General Civilian Government as % of Total Employmentas % of Total Employment
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Africa Asia ECA LAC MENA OECD
Region
MENA
Government Employment as Government Employment as % of Total Population% of Total Population
0
1
2
3
4
5
6
7
8
9
North Africa Middle East Gulf
Central Government Subnational Education Health Military
Country Comparison Country Comparison
Government Employees % of Population
0
1
2
3
4
5
6
7
Egypt Iran Morocco Syria Turkey India Indonesia Pakistan Mexico
Central Civilian Government Central Civilian Government Wages as % of GDPWages as % of GDP
0
2
4
6
8
10
12
Africa Asia ECA LAC MENA OECD MIC Overall
Central Government Wages and salaries
Wage Bill Country ComparisonWage Bill Country Comparison
Wage Bill as Percentage of GDP (2006)
0
2
4
6
8
10
12
Egypt
Iran
Mor
occo
Syria
Turke
y
India
Indo
nesia
Pakist
an
Mex
ico
Public-Private Wage RatiosPublic-Private Wage Ratios
0%
20%
40%
60%
80%
100%
120%
140%
EastAsia
LAC OECD Africa MENA
Ongoing Bank CSR EffortsOngoing Bank CSR Efforts
LendingLending• Morocco Morocco
• YemenYemen
• WBGWBG
TA and ESWTA and ESW• Regional Pay & Employment Regional Pay & Employment
Exercise Exercise
• MoroccoMorocco
• EgyptEgypt
• LibyaLibya
• WBGWBG
• KuwaitKuwait
For a variety of reasons, this agendaFor a variety of reasons, this agenda
has tended to struggle historicallyhas tended to struggle historically
Country Case Study No. 1:Country Case Study No. 1:MoroccoMorocco
• Size of the wage bill an issueSize of the wage bill an issue
• Not overstaffed, but civil servants are Not overstaffed, but civil servants are overpaid (competitive salary increases overpaid (competitive salary increases among cadres)among cadres)
• Successful VRS in 2004Successful VRS in 2004
• Developing a computerized HR databaseDeveloping a computerized HR database
• Optimal agency staffing levels?Optimal agency staffing levels?
• Geographic distribution a problemGeographic distribution a problem
Country Case Study No. 2:Country Case Study No. 2:EgyptEgypt
• Massive overstaffing, but…Massive overstaffing, but…
• Split between policy (MSAD) and Split between policy (MSAD) and administration (CAOA)administration (CAOA)
• Low salaries, with lots of allowances & Low salaries, with lots of allowances & distortionsdistortions
• Some success with reforming certain Some success with reforming certain agencies (tax, customs, GAFI)agencies (tax, customs, GAFI)
• New legislation focuses on disicpline & New legislation focuses on disicpline & contract employmentcontract employment
Country Case Study No. 3:Country Case Study No. 3:YemenYemen
• Broad, comprehensive reform agendaBroad, comprehensive reform agenda
• Computerized biometric database Computerized biometric database reducing ghost workers, double dippers reducing ghost workers, double dippers & staff serving after retirement& staff serving after retirement
• Reeingineering line departmentsReeingineering line departments
• Fund to reduce overstaffingFund to reduce overstaffing
• Migrate agencies to new salary structure?Migrate agencies to new salary structure?
• Other reforms in recruitment & Other reforms in recruitment & performance evaluationperformance evaluation
General Observations: CSR General Observations: CSR Necessary but ChallengingNecessary but Challenging
What has WorkedWhat has Worked• Agency specific Agency specific
reformsreforms• Hiring freezesHiring freezes• Payroll reformPayroll reform• Creating service Creating service
cultureculture• Incrementalism & Incrementalism &
strategic opportunismstrategic opportunism
What has NotWhat has Not• Comprehensive Comprehensive
strategiesstrategies• Centrally driven efforts Centrally driven efforts
to reform line to reform line departmentsdepartments
• Functional reviewsFunctional reviews• HRM reforms that HRM reforms that
directly confront directly confront wastawasta • Heavy ministerial & Heavy ministerial &
staff turnoverstaff turnover
It DependsIt Depends• RightsizingRightsizing• Voluntary Voluntary
retirement schemesretirement schemes• Computerized HR & Computerized HR &
payroll systemspayroll systems• Civil service Civil service
censusescensuses• Contract Contract
employmentemployment• Training and Training and
capacity buildingcapacity building
Corruption & Transparency…Corruption & Transparency…
MENA and Transparency MENA and Transparency International’s CPIInternational’s CPI
KKM IndicesKKM Indices
Recent Developments in Recent Developments in Combating Corruption in MENACombating Corruption in MENA
Creating Anticorruption Creating Anticorruption AgenciesAgencies
• JordanJordan
• IraqIraq
• YemenYemen
• MoroccoMorocco
Transparency & Public AwarenessTransparency & Public Awareness
The chart to the left shows the The chart to the left shows the MENA region in relation to the MENA region in relation to the rest of the world.rest of the world.
Transparency & Public AwarenessTransparency & Public Awareness
• Freedom of Information legislation Freedom of Information legislation passed in Jordan and under passed in Jordan and under consideration in Egypt & Yemenconsideration in Egypt & Yemen
• E-government and web based E-government and web based dissemination growing in a number dissemination growing in a number of countriesof countries
• Civil society playing a role in Civil society playing a role in several countries (Morocco, several countries (Morocco, Lebanon, Palestine)Lebanon, Palestine)
For the Quality of Administration, For the Quality of Administration, MENA’s ‘Governance Gap’ is SmallMENA’s ‘Governance Gap’ is Small
But for Public Accountability, the But for Public Accountability, the ‘Governance Gap’ is Wider‘Governance Gap’ is Wider
Global Governance Trends…Global Governance Trends…
• Many of the global trends in governance in the 1990s & beyond were felt Many of the global trends in governance in the 1990s & beyond were felt only distantly in MENAonly distantly in MENA
• In comparison with other regions, MENA fares well in terms of political In comparison with other regions, MENA fares well in terms of political stability and e-governance and fair in terms of facilitating private sector stability and e-governance and fair in terms of facilitating private sector development, service delivery and anticorruption, with wide variation development, service delivery and anticorruption, with wide variation between countriesbetween countries
• The region fares worse than global comparators on issues of The region fares worse than global comparators on issues of decentralization and on public voice, accountability and participationdecentralization and on public voice, accountability and participation
• Overall size of the public sector is an issueOverall size of the public sector is an issue
Thank YouThank You
� �شكرًا شكرًامتشکرم