Serent - Public Service

1. Improvement of Public Services
Riphard Serent, MPA
Economist
Haiti Priorise Conference, Port-au-Prince, on April 30th , 2017

2. Importance of Interventions
• Concentrated efforts to improve public services over the past ten years have
not yielded the desired results (CNRA, OMRH, CSAPFP)
• Public services continue to be provided at a discount
• Immigration services, public hospitals, justice, police, DGI, etc. leave much to
be desired
• The achievement of SDG (ODD) must be achieved through a more dynamic
public administration, whose employees are motivated to provide quality
services

3. 1st Targeted Intervention Solution
 An increase in wages in the public service

4. Description of the Recommended Intervention
• Increase wages in the civil service by 10%, particularly with the aim of
aligning the wage levels across the various public sector institutions
• As a motivating factor

5. Costs for the program’s expansion
• Direct costs related to the percentage of the payroll increase
• With a percentage increase of 10% and a payroll of 32,571, 985,371
HTG (MEF, 2016), a policy of raising salaries in the civil service will
have a total cost of around 3,257,198, 5371 HTG, whatever the
discount rate

6. Benefits- Increase in Public Service Salaries
• The benefits are equal to the costs: 3, 257, 198,5371 HTG,
• Assuming that the median effect of the best studies, already reported in the
literature, is zero
• Based on a study conducted in Mexico and on the results of the last increase
that was made, in 2013
• In addition to an increase in labor productivity and an improvement of public
services, an increase in wages would allow :
a) Assist in a better allocation of budgetary resources
b) Increase parity in salaries
c) Establish a remuneration system that will motivate civil servants and attract
the best human resources to the service sector

7. Total costs, Total benefits & BCR of a Wage Increase
Discount rate
3% 5% 12%
Costs 3,257,198,537 3,257,198,537 3,257,198,537
Benefits 3,257,198,537 3,257,198,537 3,257,198,537
BCR 1 1 1

8. 2nd Targeted Intervention Solution
 The introduction of a Pay-for-Performance program (P4P)

9. Description of the Recommended Intervention
• A public policy incentive that is capable of measuring the performance of
public officials through key performance indicators (KPIs) for higher
benefits, particularly in terms of bonuses
• Especially in jobs where output can be easily measured (skilled positions),
such as at the DGI, immigration, public hospitals, etc.

10. Costs of the P4P program
• Cost data are drawn from USAID's 1999 experiences of a pay-for-
performance program to increase health coverage and improve quality in
Haiti (Eichler et al., 2007, Zeng et al., 2012)
• A pay-for-performance program will have a total cost of 1,336,680,703
HTG with a reduction rate of 5%, based on cost data generated by the
Management Sciences for Health (MSH) program; the annual incentive
compensation, as a percentage of total costs (4%) and the Haitian
government's expenditure, as a percentage of the 2018 GDP ( 27%) plus
the percentage (30%) of government expenditure on operating costs
(IMF, 2015).

11. Benefits of the P4P program
• Based on data concerning the benefits generated by the program
implemented by the organization '' Management Sciences for Health (MSH)
• Adding together the percentage of the growing impact on health services
provided on an annual basis (12.6%) plus the Haitian government's
spending as a percentage of GDP for 2018 (27%) plus the percentage (30%
of government spending on operating costs (IMF, 2015), a pay-for-
performance program in the public service will have benefits of around
4,763,367,189 HTG, with a 5% reduction rate.

12. Total costs, Total benefits & BCR of a P4P program
Discount rate
3% 5% 12%
Costs 1,336,680,703 1,336,680,703 1,336,680,703
Benefits 4,770,587,616 4,763,367,189 4,739,220,744
BCR 3.57 3.56 3.55