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Aid Scaling Up

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Author Info

  • Annalisa Fedelino
  • Gerd Schwartz
  • Marijn Verhoeven
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    Abstract

    This paper assesses whether the scaling up of aid and the resulting increase in government spending that is needed to meet the Millennium Development Goals (MDGs) would be hampered by wage bill ceilings that are often part of government programs supported by the IMF''s Poverty Reduction and Growth Facility (PRGF). Based on country case studies for 2003-05, the paper suggests that, in the past, wage bill ceilings have not restricted the use of available donor funds. Yet the paper offers a number of suggestions for further enhancing the flexibility of wage bill conditionality in PRGF-supported programs to respond to higher aid flows that may result in the future.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 06/106.

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    Length: 37
    Date of creation: 01 Apr 2006
    Date of revision:
    Handle: RePEc:imf:imfwpa:06/106

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    Related research

    Keywords: Wage restraint; Millennium Development Goals; Government expenditures; Labor costs; Labor markets; Fund role; Poverty Reduction and Growth Facility; wage; wages; salaries; civil service; government wages; benefits; civil service reform; payroll; civil servants; government wage; wage increases; government spending; government wage bill; salary; personnel emoluments; severance payments; public sector wages; government employees; financial incentives; wage scale; central government employees; ministries of finance; payroll system; civil service roster; service delivery; government employment; budget allocations; decentralization process; government budget; wage policy; civil service census; teacher salaries; government agencies; government workers; salary increases; civil service employment; government pay; management of government; wage adjustments; administrative decentralization; employment policies; civil service payroll; nonwage compensation; retirement benefits; retirement fund; civil servant; compensation system; government policy; ministry of finance; service employment; personnel expenditures; public sector wage; national government; wage scales; minimum wage; public service delivery;

    This paper has been announced in the following NEP Reports:

    References

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. Yongzheng Yang & Robert Powell & Sanjeev Gupta, 2005. "The Macroeconomic Challenges of Scaling Up Aid to Africa," IMF Working Papers 05/179, International Monetary Fund.
    2. Peter S. Heller, 2005. "Pity the Finance Minister," IMF Working Papers 05/180, International Monetary Fund.
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    Citations

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    Cited by:
    1. Degol Hailu, 2007. "Scaling-up HIV/AIDS Financing and the Role of Macroeconomic Policies in Kenya," Conference Paper 4, International Policy Centre for Inclusive Growth.

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