How to Manage Government-Sector Remuneration and Staffing in Small States

This note summarizes the unique challenges small developing states face managing government spending on employee remuneration.

Volume/Issue: Volume 2025 Issue 004

Publication date: May 2025

ISBN: 9798229000772

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Topics covered in this book

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Finance , Labor , Public Finance , Health Policy , Demography , government-sector remuneration , staffing , small states , fiscal sustainability , brain drain , compensation spending , public service delivery , Fragile and Conflict-affected States , Migration , Eswatini , Kingdom of , Advanced Economies , Fiscal sustainability , Health care , Employment , Wages , Public employment , Emerging and frontier financial markets , Pacific Islands , Asia and Pacific , Caribbean , Sub-Saharan Africa

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Summary

The management of government spending on employee compensation is crucial for small developing states (SDS), where such spending constitutes a large portion of government expenses. These states often face unique challenges, such as disproportionately high government employment levels and the issue of "brain drain"—the latter complicates staffing for skilled positions. This note summarizes the unique challenges these states face, underscoring the importance of tailored strategies for small states in managing government compensation and employment effectively.