Public Financial Management for PRSP - Deutsches Institut für ...
Public Financial Management for PRSP - Deutsches Institut für ...
Public Financial Management for PRSP - Deutsches Institut für ...
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<strong>Public</strong> <strong>Financial</strong> <strong>Management</strong> <strong>for</strong> <strong>PRSP</strong> Implementation in Malawi<br />
Service Pay and Employment Re<strong>for</strong>m to render middle-level positions<br />
in public institutions more attractive <strong>for</strong> qualified personnel.<br />
– Reduced payment of allowances and their trans<strong>for</strong>mation into a<br />
fixed component of civil servants´ salaries: The payment of allowances<br />
to civil servants <strong>for</strong> the attendance of workshops and<br />
meetings is a common way to top up salaries and was initially intended<br />
to improve civil servants’ per<strong>for</strong>mance. However, allowances<br />
render the salary system of civil servants intransparent and in<br />
fact create perverse incentives. There<strong>for</strong>e, it should be considered to<br />
raise salaries by fixed sums and in exchange reduce allowances to<br />
the mere refunding of actually incurred transport and catering costs.<br />
Donors should support this policy and avoid creating adverse incentives<br />
through the payment of high allowances themselves <strong>for</strong> workshop<br />
attendance.<br />
– Better incentives <strong>for</strong> civil servants to work in remote areas:<br />
GoM faces serious difficulties to attract qualified staff to districts in<br />
remote areas, where living and working conditions are poor. It thus<br />
seems necessary to create more and better incentives <strong>for</strong> civil servants<br />
to work in remote districts by compensating them <strong>for</strong> less attractive<br />
living conditions.<br />
– Merit-based and transparent recruitment and promotion of civil<br />
servants: GoM should ensure that the recruitment und promotion of<br />
civil servants is strictly merit-based and transparent. The government<br />
should there<strong>for</strong>e guarantee that adequately qualified people are<br />
recruited <strong>for</strong> vacant positions and the promotion of civil servants is<br />
mainly based on good per<strong>for</strong>mance, Donors should pay particular<br />
attention to these issues and follow up on government’s commitments.<br />
– Generating multiplier effects <strong>for</strong> capacity development: Introducing<br />
new PFM tools should always be accompanied by systematic,<br />
long-term and timely capacity development. It has to be ensured that<br />
institutions´ capacity is developed instead of solely individuals´. This<br />
involves the establishment of mechanisms to disseminate specific<br />
knowledge acquired by individuals to all relevant stakeholders in order<br />
to preserve the gained knowledge and capacity <strong>for</strong> the institution.<br />
German Development <strong>Institut</strong>e 11