Civil Service System Development in the Context of Building Local Governance Tony Verheijen, Senior Public Sector Specialist, The World Bank.

CCivil Service System Development in ivil Service System Development in the Context of Building Local the Context of Building Local GovernanceGovernance

Tony Verheijen,

Senior Public Sector Specialist,

The World Bank

OutlineOutline

Relevance of discussing civil service systems in the context of local governance

Types of civil service systems and their relevance to local government

Key issues in building civil service systems in Post-Communist states

The relevance of civil service systems The relevance of civil service systems

Design of civil service systems can facilitate or hinder capacity development at local level: – Key questions to be considered:

• Restricted or inclusive definition of the civil service system?

• What is the relation between employment conditions for civil and public service?

• Does the civil service system include local government employees?

• Is the system limited to local state administration or are employees of local self-governing authorities included?

• What are the provisions governing mobility and remuneration?

Integrated vs. separated civil service Integrated vs. separated civil service systemssystems Clarification of definitions:

– Fully integrated systems include local self-governing authorities, but not necessarily public service employees (education, health sector etc.)

– Separation of public and civil service has become a generally accepted practise

– Discussion on civil service is increasingly focusing on defining the core civil service

Advantages and disadvantagesAdvantages and disadvantages

Integrated civil service systems have certain potential advantages…..– Relatively beneficial for local government

employees: possible benefits are more significant at local level

– Opportunities for mobility make local government more attractive

– Professional standards enforced across all levels of government

……but also disadvantages– Infringes on the independence of local

self-government– Imposes high cost on local

governments– Lack of control over salary cost, takes

away managerial flexibility– Risk of ‘brain drain’ if mobility is one

way

Important to note:

Relative importance of advantages and disadvantages depends on structure of self-governing authorities (size of the basic units) and local revenue raising ability

Partially integrated systemsPartially integrated systems

Covering local state administration only   Advantages:– Allows for rotation between levels of

administration– Provides quality control for local state

administration staff

Disadvantages:– Potentially weakens local self-governing

authorities

Emerging modelEmerging model

Core civil service across levels of government Rationale: – Limiting the high start-up cost of creating a civil

service system– Flexibility combined with career opportunities for

talented staff– More competitive remuneration for core civil

servants

– Definition of civil service ‘level-based’ rather than ‘employer-based’

Defining boundariesDefining boundaries

Rationale  – Exercise of public authority–Managerial responsibility– Policy responsibility vs. operational

responsibility

– Limited experience with defining criteria across levels of government

Integrated systems ‘tested’ in Europe Integrated systems ‘tested’ in Europe and CIS statesand CIS statesKazakhstan (in progress)Lithuania (implementation

abandoned in 2002)

Both mainly inclusive:– broad definition of civil service– attempting to include local self-

governing authorities

DDesirability of integrated systemsesirability of integrated systems

The design of the system is the key issue:– Remuneration system– Quality control: framing co-operation between

different levels – Mobility system: one way or both ways?

Feasibility of creating integrated systems depends on the administrative structure of the state (size of basic units of self-government)

Key choices in civil service system Key choices in civil service system developmentdevelopment Key distinctions:– Internal Labour Market: Career systems vs.

position systems– Centralised or decentralised management– Definition of the politico-administrative

interface– Representative Civil Service or Elite Civil

Service– Socialisation system (training, on the job

learning, etc.)

Classical Career SystemClassical Career System

Employment conditions generally defined by law High degree of distinction between civil service and

private sector employment conditions (better pension provisions, job security for lower salaries)

General competition as the main form of recruitment Administration divided in bodies of generalists and

specialists Automatic advancement to the highest level in

class/category, based on seniority and performance Progress to higher class/category mainly through

internal examination

Classical Position SystemClassical Position System

Civil service employment conditions close to those prevailing in the private sector

No exceptional job guarantees Mainly targeted recruitment of specialists No automatic advancement up to a certain

level Administration often fragmented

Management systemManagement system

Centralised systemNetworked systemDecentralised system

Centralised systemCentralised system

Key feature: Central Unit manages recruitment, promotion, dismissal based on input from line units

  High degree of coherence in the system Limited scope for ‘favouritism’ Promotes horizontal mobility in the system Can complicate the socialisation process Limits flexibility

Networked systemNetworked system Key features– Central unit defines and monitors procedures and

trains recruitment units– Central unit trains personnel units and keep registry– Actual selection, promotion and dismissal decisions

with the line ministries/administrative units Issues to consider

– Requires strong personnel offices able to cope with the requirements of dual subordination

– Failure of real network development can lead to the disintegration of the system

Decentralised systemDecentralised system

Key feature: central rules exist but no central enforcement mechanism

  Issues to consider:– Level of discretion for ministries risks uneven

implementation– Requires a strong commitment to the rules

and regulations by all actors– Differing interpretations of rules can lead to a

de facto system collapse

Politico-Administrative relations Politico-Administrative relations

Lack of regulated Politico-Administrative interface can have fatal consequence for administrative stability

Four main prevailing models for regulating the interface:– Banning political activity of civil servants– Reliance on mutual restraint– Defined political ‘zone’ in the administration– Political appointees placed in political cabinets

outside the hierarchy

Representative vs. elite civil serviceRepresentative vs. elite civil service

Relates to:– Perception of the role of the state

(paternalistic or laissez-faire)– Structure of Society (egalitarian or class

based)Ways to promote representativeness:– affirmative action (quota etc.)– change of entry system (take out bias of

examinations)

Socialisation modelsSocialisation models

Two distinct approaches:– Socialisation mainly through learning

on the job– Socialisation mainly through training

Development of training capacitiesDevelopment of training capacities

Crucial to public administration at all levels

Key questions:– How to integrate training in staff development– How to build capacities to assess training

needs– How to frame the delivery system

Training and staff developmentTraining and staff development

Overcoming reluctance by creating incentives

– Training Plans as an integral part of career development

– Mandatory budget percentages for staff development

Training needs assessmentTraining needs assessment

Requires strong networks of personnel offices, at central and at local level

Capacity development on training needs assessment required at all levels

In relations to the state administration government, requires a strong central resource unit to support personnel offices

In relation to local self-government, requires a support unit in the association of local authorities

Relevant training policies to be developed for central and local government on the basis of initial assessments

Delivery systemsDelivery systems

Market-based systems vs. state systems–Market-based: how to ensure relevant

tailor-made programmes in markets with limited competition?

– State sector: how to safeguard efficiency and relevance

Emerging modelsEmerging models

National and regional training institutions covered by the state:– As main providers of training– As instruments for channelling training

needs and sub-contracting delivery Network of private and quasi-

governmental training institutions

The special context of Post-Communist The special context of Post-Communist statesstates The legacy of the previous regime: – Administration as a key instrument of

suppression– Parallel bureaucracy and the supremacy of the

Party– Competing institutions: fragmentation and

duplication– Employment conditions: elimination of

differences between public and private sector, labour code applied to all

– Highly centralised system: double subordination

ResultsResults

Lack of policy-making and co-ordination capacities in the administration

Labour code regime left sufficient room for ‘hiring and firing’

High degree of suspicion of the administration in society and among new political forces

Tradition of impartial administration eliminated

Administrative reform and Administrative reform and developmentdevelopment

Initial Phase: 1989-1995 Incremental change brings further decay

to already weakened systems– Volatile political climate left little possibility for

comprehensive reform packages or adoption of key legislation

– Limited attempts at institution building in the area of training (Poland, Slovakia, Romania)

– Start of institution building process in new states (Baltic States, Slovakia, Slovenia, most NIS), but often still incremental in nature

Administrative reform and Administrative reform and developmentdevelopment

Second phase: 1995 - …… Gradual change in approach to public

administration development– Civil service systems put in place in a majority

of states– Consistent implementation and observance of

rules a key problem across the board– Broad definition of systems limits the scope

for providing incentives– Bonus systems either dysfunctional or not

transparent (e.g. Latvia in the late 1990s)

Management systems remain weak:– Personnel function is the weak link– Central management units do not have the

required power and stature– Politicisation remains a key disease in

emerging systems (with few exceptions)– Training systems remain underdeveloped