2009年-世界发展银行全球_Seychelles_-_Public_Expenditure_Review_178页_12mb

Seychelles Public Expenditure Review Summary

Core Content

This report, prepared by the World Bank team led by Tracey Lane, provides an in-depth analysis of the Seychelles' public expenditure and fiscal management practices. It is part of a series of economic reports aimed at supporting the Government of Seychelles in implementing structural reforms. The review covers macroeconomic stabilization, public expenditure management, public administration and service reform, healthcare, and education sectors, offering key recommendations for improving fiscal sustainability and public sector efficiency.

Main Objectives

• Assess the role and efficiency of the public sector in the context of fiscal sustainability.
• Provide recommendations for public expenditure reforms, particularly in the health and education sectors.
• Support the Government of Seychelles in its macroeconomic stabilization program and fiscal consolidation efforts.
• Promote a strategic approach to public administration and civil service reform.
• Improve the financial management and transparency of the public sector.

Key Findings

Macroeconomic Stabilization and Fiscal Policy

• Seychelles faced severe economic difficulties in 2008 due to unsustainable fiscal policy, overvalued exchange rates, and global economic downturns.
• The government initiated a comprehensive reform program, including exchange rate liberalization and fiscal consolidation, supported by a 2-year Stand By Arrangement with the IMF.
• The credit rating of Seychelles was downgraded by Standard & Poor's due to missed debt payments, prompting urgent action for debt restructuring.
• The report highlights the need for improved macroeconomic forecasting and budget credibility, consistent with the fiscal framework.

Public Expenditures and Expenditure Management

• Public spending is high, with a significant portion allocated to support services, including social safety nets and welfare programs.
• The government has taken on many functions that should be contracted out to the private sector, leading to inefficiencies and unproductive spending.
• The report recommends a more strategic approach to public sector functions, identifying core responsibilities and reducing non-core roles.
• There is a need for improved transparency and efficiency in public financial management practices.

Public Administration and Public Service Reform

• The government has initiated reforms to reduce public sector employment, including a 7.5% reduction in the wage bill by 2010.
• A two-pronged approach is recommended: transitioning from emergency staff cuts to strategic function rationalization and implementing a more efficient wage system.
• The current wage system lacks transparency and is costly to administer due to multiple allowance schemes and fragmented pay composition.
• A new wage grid is proposed, with 6 professional grades and at least 10 steps per grade, to improve efficiency and attract qualified personnel.

Healthcare Sector

• The health sector is characterized by high public spending, particularly on wages and salaries, due to the lack of tertiary care services within the country.
• Patients are sent overseas for treatment, leading to high out-of-pocket costs and significant debt accumulation.
• The health sector has an oversupply of facilities and beds, with low utilization rates.
• The government is advised to close around 50 beds to increase acute care occupancy rates and reduce costs.
• A new private hospital is expected to open in 2009, providing an opportunity to contract specialized care services in-country.

Education Sector

• The education sector faces challenges in terms of efficiency, cost-sharing, and quality of education.
• There is a need for a more strategic approach to school management and a reduction in non-core staff.
• The report recommends improving school autonomy, addressing student-teacher ratios, and enhancing the quality of education.
• Private education is growing, and the government should consider reforms to support this sector while maintaining public education standards.

Key Recommendations

• Budget Credibility: The Ministry of Finance should consolidate the budget in line with IMF standards and improve macroeconomic forecasting.
• Public Sector Efficiency: Conduct functional reviews of each ministry to identify and rationalize core functions, and reduce non-core roles.
• Wage System Reform: Implement a new wage grid with 6 grades and at least 10 steps per grade, ensuring transparency and competitiveness.
• Healthcare Reforms: Reduce the health sector wage bill by releasing unproductive staff and improving service delivery.
• Education Reforms: Enhance school autonomy, improve student-teacher ratios, and address quality concerns.
• Debt Management: Clear accumulated arrears and improve debt management practices, especially in foreign currency-denominated debt.
• Privatization and Delegation: Privatize non-core functions and reduce the public sector's role as the employer of last resort.
• Social Health Insurance: Explore the feasibility of introducing social health insurance to reduce out-of-pocket payments and improve financial sustainability.

Conclusion

The Seychelles Public Expenditure Review highlights the need for structural reforms in the public sector to ensure fiscal sustainability and improve service delivery. The government has already taken significant steps in implementing these reforms, and the report serves as a foundation for further analysis and action in the coming years. The next phase of the review will focus on the effectiveness of social welfare and active labor market policies, as well as the impact of these reforms on the overall economic recovery.