This paper discusses Guinea’s Second Review Under the Three-Year Arrangement under the Extended Credit Facility, Requests for Modifications of Performance Criteria and Waiver of Nonobservance of Performance Criterion, and Financing Assurances. Growth is projected at 4.5 percent for 2013, slightly lower than envisaged because of lower growth in the mining sector. The programs inflation target has been revised upward slightly, mainly reflecting the higher than programmed outcome at end-2012, together with some modest impact from an agreement on increases in civil service wages. Key risks include continued political unrest in the run-up to elections, which could affect growth, investment, and reform momentum, and a rebound in inflation if the private sector follows the increase in civil service wages.
This Selected Issues paper reviews key trends in Haiti’s fiscal performance over the past decade and discusses various options for strengthening the fiscal system. It suggests that a key challenge will be to generate adequate resources to support development, which requires an increase in outlays on social programs, security, and infrastructure investment to at least the levels observed in other low-income countries. The paper reviews revenue trends and key features of the tax system. It also illustrates that Haiti’s public sector employment is far smaller than in other countries.
This paper assesses a decade of experience in civil service reform in a sample of 32 sub-Saharan African countries. Many countries have made an important start towards reducing excessive staffing levels and the nominal wage bill, but less progress has been made in decompressing salary differentials in favor of higher-grade staff. In the CFA franc zone countries, real wages fell sharply after the 1994 devaluation, but the wage bill relative to tax revenue is still high in many countries. There is a need to consolidate quantitative first-generation reforms that contribute to macroeconomic stabilization. Equally important is the need to make progress on qualitative second-generation reforms, especially remuneration and promotion policies that reward performance and measures to improve civil service management. Such policies will require strong political commitment by governments.