The World Bank Group works with countries in Europe and Central Asia to help improve people's lives and achieve shared prosperity in a variety of ways, including through financial lending and analytical and advisory services. Our work aims to help countries achieve better competitiveness, more inclusive growth, and to adapt to climate change and improve energy efficiency.
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Bonus and incentive systems may broadly
be viewed as part of the "new public management"
reform that has been significant across the world in the
last 15 years. The... Show More + basic intention of new public management
reforms is the improvement of performance of public sector
institutions by introducing new organizational, financial,
and management measures, often inspired by private sector
practices. This study 1) reviews typical "bonus"
practices as they prevail in the Revenue Departments in a
representative sample of developing countries, and compares
them with advanced countries, where such bonuses still
exist; 2) evaluates these practices for effectiveness and
efficiency, and proposes methods for on-going evaluations of
these practices, so as to guide policy makers in designing
modifications to be made to the bonus system; and 3)
assesses whether it is possible to design a bonus system
that scores high in terms of effectiveness, and efficiency
and robustness, taking into account the various
institutional contexts. Show Less -