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Issues in the Designing of Public Sector Reform

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  • Nadeem Ul Haque

    (International Monetary Fund, Washington, D. C., USA.)

Abstract

“Civil service reform,” which has become the nickname for public sector management reform in the parlance of development economics, has only recently and grudgingly been accepted by those who advise on policy in the poor countries. Even then, the approach is somewhat paternalistic in that it emphasises externally-designed rules and processes for management, organisation, audit and accountability. It recognises the role of people in terms of noting that incentives and employment policies matter but only in terms of right-sizing the government and second to the need to spread budgetary resources over the politically chosen level of employment. What it does not accept is that and the drive to manage the public sector better has to be led and implemented by the domestic talent and in that they must have both the incentive and the honour of doing just that. This paper argues that the main reason that the public sector management has suffered in many of the poor countries is that incentives have been allowed to erode rapidly as public sector employment was viewed politically as a means of providing welfare. This lead to the outflow of many of the better quality people form the civil service and through adverse selection of the decline of work and ethical standards.

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Bibliographic Info

Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

Volume (Year): 37 (1998)
Issue (Month): 4 ()
Pages: 299-327

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Handle: RePEc:pid:journl:v:37:y:1998:i:4:p:299-327

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  1. Klitgaard, Robert, 1989. "Incentive myopia," World Development, Elsevier, vol. 17(4), pages 447-459, April.
  2. A. Premchand, 1996. "Erosion of Expenditure Management System: An Unintended Consequence of Donor Approaches," IMF Working Papers 96/102, International Monetary Fund.
  3. Robert J. Flanagan, 1995. "Wage Structures in the Transition of the Czech Economy," IMF Staff Papers, Palgrave Macmillan, vol. 42(4), pages 836-854, December.
  4. Barro, R.J., 1988. "Government Spending In A Simple Model Of Endogenous Growth," RCER Working Papers 130, University of Rochester - Center for Economic Research (RCER).
  5. Mookherjee, Dilip & Png, I P L, 1995. "Corruptible Law Enforcers: How Should They Be Compensated?," Economic Journal, Royal Economic Society, vol. 105(428), pages 145-59, January.
  6. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August.
  7. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June.
  8. Klitgaard, R., 1995. "Institutional Adjustment and Adjusting to Institutions," World Bank - Discussion Papers 303, World Bank.
  9. Srinivasan, T. N., 1973. "Tax evasion: A model," Journal of Public Economics, Elsevier, vol. 2(4), pages 339-346.
  10. Robert J. Flanagan, 1995. "Wage Structure in the Transition of the Czech Economy," IMF Working Papers 95/36, International Monetary Fund.
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Cited by:
  1. Nadeem Ul Haque, 2006. "Beyond Planning and Mercantilism: An Evaluation of Pakistan’s Growth Strategy," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(1), pages 3-48.

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