An essential step in designing reforms that will foster a well-managed, efficient and appropriately-remunerated workforce is to ensure that all policy proposals affecting pay and employment levels in the civil service (and government more broadly) are affordable, given the government's budget constraints. While rigorous analysis of fiscal implications should be part of any policy proposal, in practice it is all too often overlooked in the face of multiple pressures and limited data availability. The attached paper [PDF 365K] presents a first attempt at testing the fiscal sustainability of reforms affecting a core group of government employees - the civil service, or state service as it is known in Russia -- and exploring the many trade-offs that are involved.

Neil Parison (nparison@worldbank.org, xx88283) has provided the Russia pay and employment model [XLS 1.45M].

Click HERE to see the detailed information sheet for this model.