Public Employment and Governance in Middle East and North Africa
Government wage bills have been growing across the world, but are exceptionally high in the MENA region relative to countries’ state of development, whether measured as a share of GDP, or of government revenue and spending (World Bank, 2004). Across the region government wage bills threaten fiscal sustainability. There are many drivers behind the large wage bills, whether of central government alone or of general government. Government employment numbers also seem to grow inexorably, in many areas faster than required to deliver services in line with population growth. Other factors have been weak staff control systems, the authorization of new recruitment outside budget frameworks, and laxly applied staff performance assessment systems, in addition to absenteeism, and the difficulty under public service rules of disciplining and ultimately terminating poorly performing staff. This paper takes a look at government wage bill growth, alongside current approaches to recruitment, staff performance assessments and promotions, with particular emphasis on Egypt, Morocco and Tunisia. These country examples are complemented by a broader regional analysis to illustrate overarching trends in public sector employment.The objective is to identify the various forces at work, how they interact, and thereby document and understand better the dynamic of public sector wage bill expansion in the Middle East as well as potential linkages to public sector performance. The paper also looks at reform efforts, extracts lessons and identify potential reform options to better control wage bill growth and the unbalancing effects it has had on the efficiency and effectiveness of government spending generally. Furthermore, while the paper does not present a comprehensive overview of the nature of public employment in MENA, it aims to identify potential areas for further research in this domain.
Summary: | Government wage bills have been growing
across the world, but are exceptionally high in the MENA
region relative to countries’ state of development, whether
measured as a share of GDP, or of government revenue and
spending (World Bank, 2004). Across the region government
wage bills threaten fiscal sustainability. There are many
drivers behind the large wage bills, whether of central
government alone or of general government. Government
employment numbers also seem to grow inexorably, in many
areas faster than required to deliver services in line with
population growth. Other factors have been weak staff
control systems, the authorization of new recruitment
outside budget frameworks, and laxly applied staff
performance assessment systems, in addition to absenteeism,
and the difficulty under public service rules of
disciplining and ultimately terminating poorly performing
staff. This paper takes a look at government wage bill
growth, alongside current approaches to recruitment, staff
performance assessments and promotions, with particular
emphasis on Egypt, Morocco and Tunisia. These country
examples are complemented by a broader regional analysis to
illustrate overarching trends in public sector
employment.The objective is to identify the various forces
at work, how they interact, and thereby document and
understand better the dynamic of public sector wage bill
expansion in the Middle East as well as potential linkages
to public sector performance. The paper also looks at
reform efforts, extracts lessons and identify potential
reform options to better control wage bill growth and the
unbalancing effects it has had on the efficiency and
effectiveness of government spending generally. Furthermore,
while the paper does not present a comprehensive overview of
the nature of public employment in MENA, it aims to identify
potential areas for further research in this domain. |
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