Guest Post: To Combat Corruption, Argentina Must Insist on Meritocratic Hiring in the Civil Service

Today’s guest post is from Professor Ignacio A. Boulin Victoria of the Universidad Austral School of Law (Buenos Aires, Argentina) and Fulbright Scholar Eliana Kanefield.

Currently, over 3.9 million people work for the public sector in Argentina, constituting nearly 27% of Argentina’s workforce—the third-highest proportion in Latin America and the Caribbean (after only Barbados and Trinidad & Tobago), and well above the regional average of 18%. Working in the public sector in Argentina has substantial advantages, including strong employment security (it is extremely difficult to be fired from public sector positions in Argentina) and substantially higher salaries than comparable jobs in the private sector. It’s thus unsurprising that the competition for public sector jobs is fierce. To take just one example, when the Province of Mendoza created 114 new public sector positions, there were more than 30.000 applicants.

While there is nothing inherently wrong with the multitude of advantages public sector workers enjoy, this system gives rise to a structural problem: the system largely serves politicians’ friends and family. Officially, entry into the public sector is governed by a set of robust requirements and competitive examinations. But this is a façade. In reality, most people who get a job in the public sector do so because they have the right connections. They are usually friends, relatives, or members of the same political party of the person doing the hiring. An example of the clear disregard for the standards and systems in place is that, as of 2017, only 2% of senior management public sector employees had passed the “demanding” entry examinations and requirements designated by the government, and only 6% of these positions were filled through an open and fair recruitment procedure (compared to 90% in Chile). From 2015 to 2017, the proportion of senior public sector management positions filled by people who met the official professional requirements mandated by the job description decreased from 32% to 18%, while the proportion of these professionals who had education beyond a high school degree decreased from 72% to 66%. Admittedly, some of the public servants hired outside of the regular process do have the right qualifications, but even in those cases there’s still the inherent unfairness that potential applicants without connections don’t have the opportunity to compete for these jobs.

This failure of meritocracy worsens Argentina’s corruption problem, in three ways: Continue reading

The Urgent Need for Innovation in India’s Public-Sector Appointments Process

A public sector job is one of the most prized forms of employment in India, for a variety of reasons including prestige, attractive entry-level pay, a multitude of employment benefits, and unparalleled job security. The selection process is governed by a constitutionally-mandated scheme involving competitive examinations, and the competition for places is maddeningly intense, with millions of aspirants vying for a handful of vacancies; many candidates spend years “waiting” to clear the exam. The competitive examination system for public service appointments dates back to a 19th-century effort by the British Imperial Civil Service to crack down on corruption and patronage; after independence, India choses to retain this selection method, for similar anticorruption reasons. But it hasn’t worked: despite “merit-based” appointments, the Indian public service has remained plagued with corruption and bribery—and all too often, as in the recent  multi-billion-dollar scams that hit Indian public-sector banks, public officials are at the heart of criminal conspiracies.

Common explanations for the persistence of corruption in the Indian civil service are the relatively low pay of government jobs (notwithstanding the benefits and perks), as well as the excessive size of India’s public sector overall. Both points are valid, but we also need to consider problems with the selection process itself. Worryingly, research has suggested that the Indian public sector attracts corrupt candidates (see here and here), which contributes to the persistence of a culture of corruption in the civil service. Two reforms to the current selection system could potentially help reduce this problem: Continue reading