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Performance-related pay in the public sector: Experimentation with humility is an appropriate stance, given the state of the evidence

Nick Manning's picture

Pay Flexibility book coverA new publication on Pay Flexibility and Government Performance[1] finds that, in this area as in so many aspects of public sector management, practitioners are hampered by a lack of high quality evidence, particularly for PRP in core administrative public sector jobs.  The publication draws on a two sets of data: a review of the literature on Performance-Related Pay in the Public Sector[2] which disaggregates the available evidence by the different public sector contexts, the different types of public sector jobs, the quality of the empirical study, and the economic context; and case studies of PRP in emerging market and OECD countries, which included large perception surveys of government officials.

A related article in the World Bank Research Observer notes that this has not limited the remarkable certainty which opponents and proponents of PRP adopt concerning recommendations for reform.  Opponents march behind populist banners such as that provided by Pink[3], appealing to the idea that monetary and other extrinsic incentives are both counterproductive (because they frequently undermine intrinsic incentives) and unnecessary (because intrinsic incentives can be harnessed and used to maximize individual productivity).

Digital money is spearheading the next wave of public financial management reforms in East Asia Pacific

Khuram Farooq's picture
 
A herder boy in rural Mongolia. Photo: Khasar Sandag / World Bank

Use of digital money increasingly dominates the public financial management (PFM) reform priorities of most governments in the East Asia Pacific region, according to key findings of Public Expenditure Management Network in Asia – Treasury Community of Practice workshop held in Bangkok in March. 

South Korea leads this trend, although China, Indonesia, Vietnam, Philippines, and Mongolia are at various stages of implementing and expanding the use of digital money to transform government payments, disbursements and receipt systems.

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