Reforming wage bills can significantly impact a country’s fiscal outlook, public sector performance, the health of its labor market, and private sector development.
... Exibir mais + The public sector represents an average 15 percent of total employment, and it accounts for a large chunk of formal sector employment in Sub-Saharan Africa, East and Central Asia, South Asia, East Asia and the Pacific, and Middle East and North Africa Regions of the World Bank. The Bank began focusing on this topic several decades ago, and many of the issues then remain relevant today. This Governance Note offers answers to principal questions: What is the main motivation for the Bank’s involvement? What does its basic package of policy solutions look like? What are the main policy trade-offs? How does the political economy of pay reform come into play? And what can be learned by World Bank staff from experience for future wage bill and pay reform projects?
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This programmatic development policy operation (DPO) series is designed to strengthen the foundations for the achievement of key national outcomes under the government’s Tonga Strategic development framework 2015-2025 (TSDF II).
... Exibir mais + Fiscal and economic management reforms under pillar one support the government’s inclusive development priority and improve the resourcing of key public service delivery. Pillar two supports more responsive and effective government systems. Pillar three supports the preconditions for more dynamic, inclusive and sustainable growth. The supported outcomes are consistent with the comparative advantage of development policy programming, while other outcomes are being supported by investment operations and with technical assistance from the World Bank and other development partner programs. The operation reflects key lessons learned from previous DPOs that the Bank has undertaken in Tonga, while the current multiyear series has also highlighted important lessons for future programmatic engagements.
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The overall mission for the Kenya Social and Economic Inclusion Project (KSEIP) and National Safety Net Program (NSNP) technical discussions were held related to financial management (FM).
... Exibir mais + The primary purpose for the FM discussions were to (i) take stock of the progress made in the implementation of the agreed critical FM actions detailed in the Consolidated Action Plan (CAP) for the NSNP; and (ii) review the FM implementation arrangements for KSEIP and agree on an action plan and implementation support to further progress the KSEIP implementation.
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Many public policies are impossible to implement without adequate administrative systems in place. This is true for modern pension schemes and in particular, notional defined contribution (NDC) schemes.
... Exibir mais + Today these systems must be digital yet most pension systems predate computerization and must find a way to bridge past and present. The shift from defined benefit (DB) to NDC brings particular challenges in recordkeeping. This paper briefly reviews the administrative requirements of NDCs and offers a simple checklist for countries considering this type of reform. The last section describes a universal NDC scheme that harnesses the modern digital infrastructure that may allow developing countries to overcome the limitations of traditional contributory systems and their reliance on payroll taxes.
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Documento de Trabalho (Série Numerada) 136871 APR 01, 2019
Ratings for the Public Sector Pay and Performance Project for Sierra Leone were as follows: outcome and Bank performance was moderately unsatisfactory and monitoring and evaluation (M and E) quality was modest.
... Exibir mais + Some lessons learned included: particularly during mid-term reviews (MTRs), projects (and disbursement-linked indicators (DLIs)) need to be adapted to a significantly changed country context when the key assumptions at project appraisal have changed. The overall size of a project, as well as of individual DLIs, should be commensurate with scope and ambition. Clearly linking horizontal civil service institutional reform to vertical sector ministry outcomes can demonstrate a more tangible results-based focus of such reforms on outcomes. The use of a results-based financing instrument combined with the use of country-based systems, especially for the first time, require additional caution, guidance, and training (applicable for both World Bank staff and for government counterparts). Parallel technical assistance (TA) and enhanced supervision can have helped overcome collective action problems and coordination challenges hampering critical reforms from progressing. Disbursements based on individual DLIs should not be complicated by withdrawal limits set by the grouping of DLIs. When DLI disbursements are made into the consolidated fund, the pricing of challenging DLIs that require the coordination of multiple agencies is critical - and may need additional monetary incentives built into the DLIs for participating agencies. Non-technical aspects and risks to the reform path need to be explicitly identified in the project design. The results framework and intermediate indicators can be especially relevant in ensuring the internal logic of sequencing in the reform path. Technical assistance for rapid results initiatives (RRIs) needs to be consistently grounded in relation to the logic of progress against indicators within the results framework.
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Conclusão da Implementação e Relatórios sobre Resultados ICR4522 MAR 29, 2019
The development objective of the First Multi-Sectoral Structural Reform Development Policy Financing Project for Burkina Faso is to support the government's efforts to : (i) strengthen fiscal management; (ii) improve natural resources management and raise mining and livestock productivity; and (iii) improve health service delivery.
... Exibir mais + This development policy financing (DPF) series supports the three strategic pillars of the 2016‐2020 National economic and social development plan (PNDES) as follows: Pillar 1: economic governance; Pillar 2: human capital development; and Pillar 3: structural transformation of the economy and private sector development. The objective is that improvements to fiscal management create fiscal space, raise resources allocated to pro‐poor spending, enhance value for money, and lead to better delivery of services and infrastructure. A special emphasis will be on human capital, by improving the supply of essential service delivery inputs, and putting in place sustainable financing mechanisms for healthcare in a resource‐constrained context. Lastly, the development of artisanal mines and increased livestock productivity will foster economic growth and job creation while promoting inclusion in rural areas.
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An expanding body of literature has shown that better management practices can offer significant boosts to firms' productivity; this research illustrates that firms in South America are no exception.
... Exibir mais + Using recent Enterprise Survey data from seven countries in South America (Argentina, Bolivia, Colombia, Ecuador, Paraguay, Peru, and Uruguay), the paper explores the various dimensions and drivers of management practices and analyzes how they are related to productivity. This is an important topic to investigate, given the lagging levels of productivity growth in the region. If management practices can boost firms’ productivity, this may be a cost-effective way to accelerate economic growth. The results show that improved management practices are associated with higher levels of productivity in all countries, and it is the impact of improved management specifically in larger firms that is driving the overall results. Indeed, in some countries, specifically Argentina, Paraguay, and Peru, it is only among larger firms that there is a positive link between management practices and productivity.
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Documento de trabalho sobre pesquisa de políticas WPS8783 MAR 19, 2019
This paper explores the effects of a large increase in the national minimum wage in Turkey on firms’ exit rates from the formal economy. The analysis exploits a unique, linked employer-employee panel data set of the universe of registered firms in all sectors of the economy.
... Exibir mais + The causal impact of the minimum wage hike is estimated by using pre-policy information on the full distribution of wages in registered firms as a measure of exposure to treatment, and by implementing a difference-in-difference estimation strategy. The minimum wage hike is found to increase firms’ exit rates from the formal economy by 12 percent. This suggests that firm exits attributable to the minimum wage hike could account for up to one-third of the total formal employment destruction that occurred between 2015 and 2016. The minimum wage effect on exit rates is found to be larger among firms with low productivity levels before the policy change, and in sectors where profit margins are low. A range of placebo tests and robustness checks indicate that these findings are not driven by trends in unobservable characteristics correlated with exposure to the minimum wage hike.
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Documento de trabalho sobre pesquisa de políticas WPS8749 FEB 15, 2019
