Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized i Report Team This report has been compiled by Elsa Araya, Governance Global Practice; Verena Fritz, Governance Global Practice; Daniel Rogger, Development Impact Evaluation and Development Research Group World Bank; Kerenssa Kay, Development Research Group and Governance Global Practice; Ravi Somani, University College London; Tesfaye Digie and Adebabay Abay, consultants advising the team. Hisham Waly (Practice Manager, Governance Global Practice), Renaud Seligmann (Practice Manager, Governance Global Practice) and Carolyn Turk (Country Director for Ethiopia, Sudan and South Sudan) provided overall guidance. ii Acknowledgements Ethiopia’s Ministry of Public Service and Human Resource Development (MPSHRD) requested this analysis, and the team wishes to especially thank H.E. Ato Tagesse Chaffo, Minister; H.E. Ato Adamu Ayana, State Minister; and Ato Tesfaye Atire, Director of the Federal Reform Program Monitoring and Support Directorate, for their guidance. The team also appreciates the engagement of members of the special task force formed to support the process: Tesfaye Belachew, Melaku Bizualem, Taye Wakuma, Jemila Ahmed, and Mekonen Gashu. We also wish to thank Berhanu Legesse, Stefan Dercon, and Jaydeep Biswas for their support during the development of the survey instrument as well as the survey team members who collected the data for this project: Girma Shegute, Seife Fekade, Molla Tedla, Sileshi Seneshaw, Habtu GebreHiwot, Abiy Tessema, Mandefro Bekele, Mohammed Umer, Eskinder Tesfaye, Gashaw Yetwale, Naga Tesfaye, Wubliker Teklu, Mitselal Gebre, Hailu Alemsellassie, Yared Abraham, and Tesfakiros Arefe, as well as data encoders Fikir Temtem, Kidist Tesfasilasie, and Haimanot Zeleke. Administrative support was provided by Hanna Ketselamaryam Hailu, and document editing and formatting support was provided by Candace Gebre and Cybil Maradza, respectively. We gratefully acknowledge financial support from the World Bank, UK Department for International Development, and International Growth Center. iii Abbreviations ATA Agricultural Transformation Agency BA Bachelor of Art BPR Business Process Reengineering BSC Balanced Scorecard CSR Civil Service Reform CSRP Civil Service Reform Program DFID Department for International Development DG Director General EMIS Education Management Information System ERCA Ethiopian Revenue and Customs Authority FAO Food and Agriculture Organization FY Fiscal Year GDP Growth Domestic Product GTP Growth and Transformation Plan HRM Human Resource Management IMF International Monetary Fund IT Information and Technology KII Key Informant Interviews MAB Ministries, Agencies and Bureaus MDG Millennium Development Goal MOH Ministry of Health MOT Ministry of Trade MPRSHRD Ministry of Public Service and Human Resource Development NCBP National Capacity Building Program NPM New Public Management SWOT Strength, Weakness Opportunity and Thereat TGE Transitional Government of Ethiopia UK United Kingdom UNDP United Nations Development Program UNECA United Nations Economic Commission for Africa US United States USAID United States Agency for International Development USD United States Dollar iv Table of Contents Report team ............................................................................................................................................................... i Acknowledgements .............................................................................................................................................. ii Abbreviations .............................................................................................................................................................. ii List of Figures ........................................................................................................................................................... vi List of Tables ............................................................................................................................................................. viii List of Boxes ............................................................................................................................................................. viii Executive Summary .............................................................................................................................................. ix 1 Introduction .................................................................................................................................................................... 1 1.1 Motivation for this report .................................................................................................................................. 2 1.2 Methodological approach: qualitative analysis, survey, and administrative data .............. 4 2 Recent Evolution of the Civil Service ......................................................................................................... 7 2.1 Overall staff and wage-bill size ..................................................................................................................... 8 2.1.1 Size and staff composition of the five sectors covered ........................................................................... 12 2.2 Wage and non-wage benefits .......................................................................................................................... 13 2.2.1 Pensions ...................................................................................................................................................................... 15 2.2.2 Health insurance .................................................................................................................................................... 16 2.2.3 Allowances ................................................................................................................................................................. 16 2.2.4 Transportation ......................................................................................................................................................... 17 2.2.5 Preferential participation in the housing lottery ....................................................................................... 17 3 Civil Service Reform Efforts .............................................................................................................................. 19 3.1 Brief overview of global and regional experiences with public service reforms to situate Ethiopia’s reform approaches ........................................................................................................................ 21 3.2 Initial reform period in Ethiopia .................................................................................................................... 22 3.3 Reform processes since 2005/2006 ........................................................................................................... 24 3.3.1 Business process reengineering (BPR) ......................................................................................................... 24 3.3.2 After the BPR - current reforms ........................................................................................................................... 27 3.4 Civil servants’ perceptions of current reforms ...................................................................................... 31 3.4.1 Perceptions of the BSC ....................................................................................................................................... 33 3.4.2 Perceptions of the Change Army ................................................................................................................. 34 3.4.3 Perception on the Citizens Charter ............................................................................................................. 34 3.5 Regional comparison of government effectiveness ................................................................................ 35 3.6 Management practices within Ethiopia’s civil service ............................................................................. 36 3.6.1 Targeting ..................................................................................................................................................................... 37 3.6.2 Monitoring ................................................................................................................................................................. 38 3.6.3 Roles ............................................................................................................................................................................... 41 3.6.4 Flexibility ......................................................................................................................................................................... 41 3.6.5 Staffing............................................................................................................................... ............................................... 42 3.6.6 Staff involvement ................................................................................................................................................... 43 v 4 The State of the Service Today ......................................................................................................................