Publication: Public Employment and Governance in Middle East and North Africa
Loading...
Published
2016-05
ISSN
Date
2016-10-18
Author(s)
Editor(s)
Abstract
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.
Link to Data Set
Citation
“World Bank. 2016. Public Employment and Governance in Middle East and North Africa. © World Bank. http://hdl.handle.net/10986/25181 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Romania - Functional Review : Labor and Social Protection Sector, Final Report, Volume 2(Washington, DC, 2011-06)The Government of Romania (GOR), in agreement with the European Commission (EC), requested functional reviews of the Romanian public administration through an independent advisory service with the World Bank. The general objective of this advisory service is to review the current situation of the Labor and Social Protection (L&SP) sector, assess its functioning and develop an action plan that the GOR can use over the short- to medium-term to strengthen its effectiveness in the public administration. In meeting this objective, the World Bank examined: (i) whether the policy goals and objectives of the Ministry of Labor and Social Protection (MoLFSP) and its agencies are clearly defined in measurable and achievable terms; (ii) whether the management systems, policies, staffing, and organizational structure are appropriate for them to meet their objectives; and (iii) whether factors external to the institutions that may impede their ability to meet their objectives. The report is organized into two volumes. Volume One summarizes the main findings and messages, presents priorities for reform, and suggests an action plan to carry out these priority reforms. Volume Two provides chapters with the background diagnostics, assessment and findings in depth, covering: Main Sector Features and Institutional Mapping; Ministry of Labor Family and Social Protection; Labor Market; Pensions; Social Assistance (Cash Transfers); Social Assistance Services; Information Management (cross-cutting)Publication Labor Markets and School-to-Work Transition in Egypt : Diagnostics, Constraints, and Policy Framework(World Bank, Washington, DC, 2010-11)Analysis in this policy note indicates a rapid deterioration in employment opportunities for young individuals transitioning from school to work in Egypt. Despite substantial improvements in labor market outcomes in recent years (in raising employment and participation and in lowering unemployment), unemployment rates in Egypt remain exceedingly high among youth entering the labor market for the first time. A slow school-to-work transition remains the main reason behind high unemployment rates. Young entrants to the labor market have become more educated than ever before: the share of the working-age-population with university education in Egypt has increased significantly between the years 1998 and 2006 (from 14% to 19% among men and from 9% to 14% among women). However, youth are unable to capitalize the time and resources invested in their education as the labor market is not providing enough good-quality jobs for them. To cope with scarce formal jobs, young-educated workers are opting to work in the informal sector and/or withdraw from the labor force, which is contributing to a deadweight loss of recent investments in education. There are three key factors that seem to explain why school-to-job transition remains low in Egypt: investments in the private sector remain low and capital intensive, new graduates are not equipped with the skills demanded by the private sector, and the public sector still provides incentives for educated individuals (mainly women) to queue for private sector jobs. There are several policy options used in the international context to further enhance the performance of the labor market; such as enhancing employability of new entrants, reforming the technical and vocational training system, and designing targeted programs aiming to boost labor demand.Publication Labor Policy to Promote Good Jobs in Tunisia : Revisiting Labor Regulation, Social Security, and Active Labor Market Programs(Washington, DC: World Bank, 2015)Tunisians are striving for the opportunity to realize their potential and aspirations in a country that is rich in both human and physical capital, but whose recent economic growth has failed to create enough opportunities in the form of good and productive jobs. This report highlights the main barriers that hinder the Tunisian labor market from providing income, protection, and prosperity to its citizens and proposes a set of labor policies that could facilitate the creation of better, more inclusive, and more productive jobs. The weak economic performance and insufficient and low-quality job creation in Tunisia is primarily the result of an economic environment permeated by distortions, barriers to competition, and excessive red tape, including in the labor market. This has resulted in the creation of a insufficient number of jobs, especially in the formal sector. To change this situation, policy makers need to address five strategic directives that can promote long-term inclusive growth and formality: foster competition; realign incentives, pay, and benefit packages in the public sector; move toward labor regulations that promote labor mobility and provide support to workers in periods of transition; enhance the productivity of informal workers through training and skills building; and reform existing social insurance systems and introduce new instruments to attain broader coverage.Publication Hashemite Kingdom of Jordan - Development Policy Review : Improving Institutions, Fiscal Policies and Structural Reforms for Greater Growth Resilience and Sustained Job Creation (Vol. 2 of 2)(Washington, DC, 2012-06)Jordan's quest for long-term, inclusive and sustainable growth has remained largely elusive. By the Growth and Development Commission's measure of success, namely, an average growth rate of 7 percent over 30 years, Jordan's growth record cannot be dubbed 'successful'. This Development Policy Review (DPR) shows that sustaining growth and reducing unemployment is possible: Jordan has a strong human capital base, a large endowment in engineers, doctors, accountants, Information Technology (IT) specialists and a substantial highly-skilled diaspora (500,000 educated Jordanians abroad, 8 percent of the population). Furthermore, the market-oriented reforms of the early 2000s have made Jordan one of the most open economies in the Middle East and North Africa Region and have led to the emergence of dynamic non-traditional sectors (e.g., information and communication technologies, health tourism and business services). What is missing are: (i) an adequate and stable institutional framework for policymaking and long-term business development; (ii) good fiscal policies to manage shocks and maintain macroeconomic stability; good institutions and macroeconomic stability were identified by the growth commission as two of the five common characteristics of successful growth experiences; and (iii) further growth-enhancing structural reforms.Publication Azerbaijan : Inclusive Growth in a Resource-Rich Economy(Washington, DC: World Bank, 2013)Azerbaijan experienced a 'golden age' in the last decade, during which the average growth rate reached record high levels and poverty decreased significantly. On average, the economy grew by 15.3 percent per year in real terms during this period, mainly driven by the oil sector (21.5 percent growth per year), but with a significant contribution from the non-oil sector (11.1 percent per year). As a result, poverty declined dramatically from 49.6 percent in 2001 to 15.8 percent in 2008 the latest year for which household survey data was available when this report was prepared. This report takes an inclusive growth approach to investigating the ways in which the country's high growth was translated into significant poverty reduction. First chapter summarizes the sources of growth in Azerbaijan with an emphasis on structural transformation and discusses highlights of the inclusive growth methodology. Second chapter explores how growth helped to reduce poverty. Third chapter analyzes the sustainability and inclusiveness of the recent growth. Finally, fourth chapter focuses on the structural obstacles that constrain further inclusive growth in Azerbaijan. The last chapter recommends some policies to overcome these obstacles. The main findings of this report call for a careful strategy in promoting further inclusive growth in Azerbaijan. The mechanisms that facilitated drastic reductions in poverty in the last decade a strong rise in fiscal transfers and in the real wage were made possible by the oil boom. However, these mechanisms also reduced the pace of structural transformation in the Azerbaijan economy. Distorted incentives in demand and supply sides of the labor market have seemed to weaken the correlation between productivity growth and employment shares. This report finds that the failure to follow a fiscal rule over the past decade has led to excessive domestic absorption with a resulting barriers against further development and diversification in the tradable sectors (principally agriculture and manufacturing) and against employment creation within those sectors, as well as leading to an unsustainable growth in public expenditures, and to inadequate long-term public savings in the Oil Fund. Thus, the reassertion of a fiscal rule that constrains domestic absorption and promotes economic diversification is a necessary condition for achieving sustained inclusive growth.
Users also downloaded
Showing related downloaded files
Publication Morocco Economic Update, Winter 2025(Washington, DC: World Bank, 2025-04-03)Despite the drought causing a modest deceleration of overall GDP growth to 3.2 percent, the Moroccan economy has exhibited some encouraging trends in 2024. Non-agricultural growth has accelerated to an estimated 3.8 percent, driven by a revitalized industrial sector and a rebound in gross capital formation. Inflation has dropped below 1 percent, allowing Bank al-Maghrib to begin easing its monetary policy. While rural labor markets remain depressed, the economy has added close to 162,000 jobs in urban areas. Morocco’s external position remains strong overall, with a moderate current account deficit largely financed by growing foreign direct investment inflows, underpinned by solid investor confidence indicators. Despite significant spending pressures, the debt-to-GDP ratio is slowly declining.Publication Lebanon Economic Monitor, Fall 2022(Washington, DC, 2022-11)The economy continues to contract, albeit at a somewhat slower pace. Public finances improved in 2021, but only because spending collapsed faster than revenue generation. Testament to the continued atrophy of Lebanon’s economy, the Lebanese Pound continues to depreciate sharply. The sharp deterioration in the currency continues to drive surging inflation, in triple digits since July 2020, impacting the poor and vulnerable the most. An unprecedented institutional vacuum will likely further delay any agreement on crisis resolution and much needed reforms; this includes prior actions as part of the April 2022 International Monetary Fund (IMF) staff-level agreement (SLA). Divergent views among key stakeholders on how to distribute the financial losses remains the main bottleneck for reaching an agreement on a comprehensive reform agenda. Lebanon needs to urgently adopt a domestic, equitable, and comprehensive solution that is predicated on: (i) addressing upfront the balance sheet impairments, (ii) restoring liquidity, and (iii) adhering to sound global practices of bail-in solutions based on a hierarchy of creditors (starting with banks’ shareholders) that protects small depositors.Publication Argentina Country Climate and Development Report(World Bank, Washington, DC, 2022-11)The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.Publication World Development Report 2006(Washington, DC, 2005)This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.