Building Civil Service Bureaucratic Quality in Ghana: Analysis of the Effect of International Monetary Fund Loan Conditionality

Abstract

The International Monetary Fund (IMF) describes loan conditionality as “macroeconomic and structural policies used to monitor progress towards the goals outlined in the loan programme.” One of the prominent targets of IMF loan conditionality has been Civil Service Reforms (CSRs). While some scholars argue that IMF-led CSRs help borrowing countries to revamp their civil service systems, others maintain that some conditionality can impede the building of quality civil services. Anchored on the Weberian model, this study sought to examine the effect of IMF loan conditionality on civil service bureaucratic quality in Ghana. Specifically, the study examined the nature of the conditionality on the public sector, and the effect of the conditionality on merit-based recruitment, personnel promotion, personnel remuneration, and the availability of competent human resources in the civil service. The research approach adopted was the qualitative methods design. The study collected primary data through interviews with nineteen (19) officials (mainly, directors from the Office of the Head of Civil Service, the Ministry of Finance, and other selected Ministries), using semi-structured interview guides. The primary data was augmented with relevant secondary data. Findings of the study reveal that the persistent focus of IMF loan conditionality on cost-cutting and wage containment mechanisms in the civil service, with little focus on the need for capable and motivated human resources, undermined bureaucratic quality. Specifically, the conditionality affected merit-based recruitment, personnel promotion, personnel remuneration, and the availability of competent personnel in Ghana’s Civil Service. Among other things, the study recommends that proper consultation and functional reviews should be undertaken before IMF conditionality are imposed to prevent negative effects on civil service bureaucratic quality.