Philippines
POLITICAL ECONOMY OF CIVIL SERVICE REFORM
Terms of Reference
Background
1.
By definition, public sector reforms (including decentralization) imply a change in the
distribution of benefits and, more critically, the institutionalization of such change. As such,
reforms in the public sector may attract varying degrees of opposition or other means of limiting
their effect by those who would lose. Because public sector reforms involve large-scale
institutional change, affect various constituencies and often unfold over an extended period,
interests, actors and their strength, and whole governing regimes may shift resulting in a
decidedly different environment than when initially conceived or adopted. Often, this results in
reform programs that do not succeed as anticipated, or even fail, in spite of seemingly strong
technical foundations.
2.
In order to better understand how reformers can ensure that reforms are adopted,
implemented, and institutionalized, it is critical to understand the nature of institutions, social
structures, and actors and interests within which a particular reform program operates. In the case
of decentralization and local government in the Philippines, it is important to gain a better
understanding of what and how economic, social and political actors affect the adoption, content,
and implementation of policy at the national and local levels. From such an understanding,
practitioners may identify better-informed strategies that could be used to manage reform
processes in order to achieve optimal results in local government.
Objective
3.
The aim of the assignment is to provide a comprehensive assessment of the social,
economic and political factors and actors that have impinged, and may impinge, on civil service
policy formulation, reform initiatives and human resource management practices at the national
government, GOCC/GFI and local government unit (LGU) levels in the Philippines. Based on a
review of existing information and analyses and on case studies of 2-3 LGUs, the consultant will
provide an analysis of how several variables and relevant actors affect civil service policy
formulation, reform initiatives and human resource management practices at the national
government, GOCC/GFI and local government unit (LGU) levels in the Philippines. The
consultant will also be expected to suggest explicit policy implications of his or her main
findings.
Scope of Work
4.
The consultant will provide a report based on field research, including interviews, on
civil service policy formulation, reform initiatives and human resource management practices at
the national government, GOCC/GFI and local government unit (LGU) levels in the Philippines,
according to his/her own knowledge and existing data. The report should include brief case
studies of the political economy of human resource management practices in 2-3 selected LGUs
(at least one province and at least one city, to be decided in consultation with the task team
leader). The analysis should include:
a) a literature review highlighting relevant findings of previous research on the political
economy of civil service reform in the Philippines and especially highlighting findings
and variables that will shape the consultant’s analysis;
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b) a discussion of the formal rules of human resource management and rules of oversight:
for example, how are civil service codes, laws and IRRs crafted, passed and
implemented;
c) a discussion of the actual practices in human resource management and especially
deviations (positive innovations and negative subversions) and, most importantly, why
they occur; for example, practices for containing wage bill expenditures and choices
made under those conditions; range and determination of non-monetary benefits;
d) particular attention to human resource management issues arising from the political cycle
of electoral competition, batch recruitment, coterminous (political) and permanent
professional positions; what is the balance between objective and discretionary criteria
for these issues and for specific HR-related issues in b) and c);
e) prospects of career advancement for various categories of civil servants; the role of
patronage in employment and in the relationship between human resource management,
performance and accountability;
f) the dynamics of professional (career) and political appointments and the dynamics of
appointment of non-career executive officers to career executive positions;
g) a discussion of social, cultural, and political patterns, events, and relationships that
impinge positively or negatively on civil service reform at the national and LGU levels.
5.
In reporting the above items, the consultant will:

explore and further explain the issues identified by the World Bank-ADB mission of
February-March 2003, and pursue and clarify issues highlighted by preliminary analyses
from the initial mission; and

conduct interviews with national government, GOCC/GFI and LGU officials, other
stakeholders including trade unions, employees’ associations, business or other groups
(e.g. chambers of commerce) and NGOs and other observers (e.g. mediapersons and
academics) to get clarity on the issues, policies and practices and to obtain ideas for
improvement.
Deliverables
6.
The deliverables (to be sent in electronic format in English, except for the final report,
which should be sent in electronic as well as hard copy format in English) will comprise:
a) A first draft of a written report of about 20 pages summarizing findings and policy
implications, due by May 25, 2003. Annexes may be attached. The core report and
recommendations, however, should be entirely self-contained.
b) A second draft report – as above – due by June 5, 2003.
c) A third and final draft – as above – due by June 15, 2003.
d) Such face-to-face or video conference briefings as may be necessary (expected to be no
longer than half a day) to the Task Team Leader to review findings, comment on the draft
report, and provide input based on the report to team discussion. Some of the briefing(s)
will be in May 2003 in Manila depending on team needs.
Report Outline
7.
The report is expected to have the following components:
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a)
Executive Summary - summarizing the main findings and lessons of the research,
including highlights of data, trends, and possible lessons
[2 pages]
b)
Introduction and Literature Review - an elaboration of the variables in consultant’s
framework and additional ones drawn from the theoretical and case study literature on civil
service reform, local government and political economy in Philippines.
[2 pages]
c)
Detailed Analysis - detailed reporting of the main findings on the political economy of
civil service reform in the Philippines. This analysis should be sensitive to the framework
proposed for the specific technical areas the rest of the study covers but with deviations and
additions as warranted by the evidence examined and the author’s best judgment. [15 pages]
d)
Conclusion
[2 pages]
e)
Bibliography
[2 pages]
f)
Annexes
[Unlimited]
Period of Assignment
8.
The assignment will be for a period of about 20 working days between May 19 and June
30, 2003. The working days include time for preparation, write-up and revisions.
Reporting and Liaison
9.
The consultant will report to the Task Team Leader (TTL), Amitabha Mukherjee, Senior
Public Sector Management Specialist, Poverty Reduction and Economic Management (PREM)
Unit, East Asia and Pacific (EAP) Region of the World Bank. Consultation, and review of drafts
will be handled by the Task Team Leader, Stephen Ndegwa (Young Professional, PREM Unit,
EAP Region of the World Bank) and Joven Balbosa (Economist, World Bank Office in Manila).
10.
The consultant will work closely with the above persons to identify general or particular
questions that need to be answered to provide a robust analysis, and all logistical and research
matters should be addressed to them. Their contacts are:
 Amitabha Mukherjee, Senior Public Sector Specialist, EASPR (Ph. 202-458-5061; Email:
amukherjee@worldbank.org)
 Joven Balbosa, Economist, World Bank Office in Manila (Ph. 917-3015; Email:
jbalbosa@worldbank.org)
 Stephen N. Ndegwa, Young Professional, EASPR (Ph. 202-473-1510; Email:
sndegwa@worldbank.org)
Contract Arrangements and Logistics
11.
The contract arrangements, including fee rates etc. will be detailed in the formal contract.
Payments will be made on the basis of actual number of days worked. If travel ensues, expenses
for travel and subsistence will be subject to the usual World Bank rules in this regard. The
consultant will be responsible for providing his/her own laptop computer and accessories and
other logistical support to accomplish the work. These terms of reference will form part of the
consultant’s contractual obligation to the World Bank.
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Amitabha Mukherjee
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May 15, 2003 2:17 PM
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