"IMF deal needed to restore dinar stability"

French gouvernement in april 2008 edited a “Livre Blanc” about the public service.
In France more than 7 million people, more than 28% of the working population, works for public service!!!
Referring to OCDE numbers for year 2005, the public sector wage expenditures represented 13,1% GDP !!! (Italy 11%, GB under 10%, Germany 7,2%, Japan 6,3%)
But in the same document you can read that the total cost of operation of the public sector (including wages and other expenditures of operation but excluding intervention and investment credits) establishes as follows:
GB 21,5% of GDP
Canada 19% of GDP
France 18% of GDP
US 17,5% of GDP
Italy 16 % of GDP
Germany 11,5% of GDP
Japan 10% of GDP
My point is that it is a very current error that wages should be considered as the only variable of adjustment.
For instance, a university professor in Serbia earns a monthly wage about 600 Euros. In France, for the same position salary is above 3000 Euros! If there’s no reasonable leveling of wages, qualified people will simply leave the country and the “brain drain” would harm Serbia more than to spend a little more.
I have to agree that it is unjustifiable for employees in monopolies to have substantially higher salaries than those paid for identical positions in the labor market and the best thing to do would be to return those monopolies to the private sector where they belong except for those who have a clear mission of public service. But, as everybody knows, most of those public enterprises are largely overstaffed and to return them to the market economy without considering the social consequences would be a big error!
One of the most current errors of the World Bank is to see only numbers and never give a thought about the people who have to suffer the consequences!
World Bank theories are proven wrong! People of Argentina know something about this!!
No need for Serbia to try the same false path! The more she stays away of World Bank and IMF, the better she's going!!!

French gouvernement in april 2008 edited a “Livre Blanc” about the public service.
In France more than 7 million people, more than 28% of the working population, works for public service!!!
Referring to OCDE numbers for year 2005, the public sector wage expenditures represented 13,1% GDP !!! (Italy 11%, GB under 10%, Germany 7,2%, Japan 6,3%)
But in the same document you can read that the total cost of operation of the public sector (including wages and other expenditures of operation but excluding intervention and investment credits) establishes as follows:
GB 21,5% of GDP
Canada 19% of GDP
France 18% of GDP
US 17,5% of GDP
Italy 16 % of GDP
Germany 11,5% of GDP
Japan 10% of GDP
My point is that it is a very current error that wages should be considered as the only variable of adjustment.
For instance, a university professor in Serbia earns a monthly wage about 600 Euros. In France, for the same position salary is above 3000 Euros! If there’s no reasonable leveling of wages, qualified people will simply leave the country and the “brain drain” would harm Serbia more than to spend a little more.
I have to agree that it is unjustifiable for employees in monopolies to have substantially higher salaries than those paid for identical positions in the labor market and the best thing to do would be to return those monopolies to the private sector where they belong except for those who have a clear mission of public service. But, as everybody knows, most of those public enterprises are largely overstaffed and to return them to the market economy without considering the social consequences would be a big error!
One of the most current errors of the World Bank is to see only numbers and never give a thought about the people who have to suffer the consequences!
World Bank theories are proven wrong! People of Argentina know something about this!!
No need for Serbia to try the same false path! The more she stays away of World Bank and IMF, the better she's going!!!