1. Public Service and Development: an overview of the Brazilian experience Roberto Rocha C. Pires Institute for Applied Economic Research (IPEA) - Brasília, Brazil Developmental State Conference Public Service Comission of South Africa Pretoria, 11-13 November 2014

2. Brazil  Population: ~200 million (5th largest + doubled in the last 30 years)  47% white + 51% “pardo”/mixed/coloured and black  Economic Growth  Inequality  One of the most unequal countries  Dropping since 1995, most vigorously since 2005 (reaching 1960s levels)  Political system  Federation (27 states + 5.565 municipalities)  Multi-party presidential regime Decades1950s1960s1970s1980s1990s2000s Avg. Growth (year) 7,4%6,2%8,7%1,7%2,6%3,6%

3. Brazil – Public Service  The participation of public employment – civil servants – in the country’s workforce raised from 1,2%, in 1949, to 5.48%, in 2008.  Distribution across levels of government: 15% at the federal level; 34% state level; and 51% at local level.  Federal Government (Executive Branch) = ~600.000 active civil servants (+ retired + military)

4. Figure 1 - Evolution of the total number of active civil servants in the federal Executive Branch OBS.: even though personnel expenditures increase (with new recruitments), it has been kept between 4-5% of GDP, throughout the period.

5. Brazil – Public Service Recruitment  Since the Constitution of 1988, there are only three possibilities for “entrance” in the civil service:  Permanent jobs: 1. Only through competitive public service exams (meritocratic recruitment)  Temporary assignments: 2. Temporary contracts (only in special cases, e,g. census, emergencies) – similar to private labor contracts or consultancy via international organizations = no tenure/stability on the job; 3. DAS system – discretionary political appointments to managerial positions (DAS 1-6, from lower to upper level management) = ~22.000

6. Brazil – Public Service Recruitment  Since 2005, regulation established limits/interconnections:  75% of DAS 1-3 positions must be occupied by civil servants;  50% of DAS 4-5 positions must be occupied by civil servants;  0% for DAS 6 (secretary/vice-minister level) As a result, only 1% is fully discretionary + moderate turnover rates = stabilizes changes in political leadership…  Contemporary recruitment system is a combination of:  Recruitment by merit + recruitment by loyalty or affinity  CONTINUITY/STABILITY + CHANGE/REFORM  Provides a base form appointed officer to saying “no” to their ministers, while still keeping room for legitimate political influence (vs. technocracy)

7. Increases in levels of education – federal civil service

9. Outcomes: dismissals + control of corruption (BERSCH, PRAÇA & TAYLOR, 2013)

10. Constructing (vs. Deconstructing) a Developmental State in Brazil Construction is gradual/slow and not linear (involves phases of deconstruction) This process is heterogeneous across policy areas And it takes place under different political arrangements (authoritarian vs. democratic rule)

11. Non-linear path… Time / PeriodStrategic orientation (will + leadership) Goals pursued From 1930s – 1980s: 1930-45 – “Estado Novo” 1946-64 – Limited democracy 1964-85 – Military regime DevelopmentalIndustrialization + infrastructure 1990sNeoliberalInternational trade and competitiveness 2003-onwardsNeo-DevelopmentalReduction of social and regional inequalities + infrastructure + industrialization

12. Time / PeriodModes of Recruitment Political- Administrative interface From 1930s – 1980s: 1930-45 – “Estado Novo” 1946-64 – Limited democracy 1964-85 – Military regime Creation of DASP (1936) Mixed forms Direct vs. indirect administration No performance mngmt Mostly patrimonial and clientelistic (“islands of excellence”) 1990s Competitive exams only for management especisliats and auditing careers Pay-for-performance Transition to meritocratic recruitment (Constitution of 1988) but in context of a shrinking public sector 2003-onwards Competitive exams for all areas (policy execution) No performance mngmt Meritocratic recruitment + Reconstruction of bureaucratic capacities

13. Reconstruction of Developmental State Capacities – post-2000s Advances: ▫Regular recruitment drives through competitive public service examinations (200.000 recruits from 2003 to 2010). ▫Substantial increases in salaries ▫Creation of transversal careers (social policy + infrastructure analysts) ▫Professionalization: training (proliferation of schools of government) + competition (increased level of candidate’s education) ▫Transparency (information about salaries and careers – internet) Limitations: ▫Lack of long term planning (only in specific policy areas) ▫Short career paths + promotions ▫Management of performance and competences

14. Capacities are heterogeneously distributed…

15. Administrative + Political Capacities  The construction of state capacities under democratic regimes must go beyond the strengthening of the administrative and technical capacities (bureaucracies) necessary for effective policy implementation and service delivery…  It must also incorporate and expand principles such as transparency, social participation, political inclusion, and negotiation in the ways bureaucracies operate and interact with society.  Legitimacy  innovation  1988 Federal Constitution and later legislation emphasize social participation in different areas and establish institutional forms of interaction between State and society.  Policy councils; national conferences; public hearings and consultation, participatory budgeting, etc. at local, state and federal governments

16. Coordination mechanisms “superminstry” President’s Chief of Staff Office (Casa Civil) PAC Infrastructure (coordination and intensive monitoring)

17. Conclusion Brazil does not offer a coherent/systemic model to be followed or replicated Rather, it offers some “localized” lessons to be extracted from such experience (in different periods or across policy areas) “Autonomy” (meritocratic recruitment) + “Extended Embeddedness” (social participation)

18. Thank you! Contact information: Roberto Pires roberto.pires@ipea.gov.br +55 (61) 3315-5522