THE STRUCTURE OF THE BUREAUCRACY OF THE

Transcrição

1 THE STRUCTURE OF THE BUREAUCRACY OF THE BRAZILIAN STATE AN ANALYSIS OF PUBLIC EMPLOYMENT BRAZILIAN STATE

2 THE STRUCTURE OF THE BUREAUCRACY OF THE BRAZILIAN STATE AN ANALYSIS OF PUBLIC EMPLOYMENT Rio de Janeiro, 2016

3 FGV/DAPP Director Marco Aurelio Ruediger DAPP +55 (21) TEAM IMPLEMENTATION TEAM Coordination Marco Aurelio Ruediger Researchers Amaro Grassi Miguel Orrillo Rafael Martins de Souza Graphic project Rebeca Liberatori Braga FGV is an institution with a philanthropic, educational, technical and scientific nature, created on 20 December 1944 as a private entity, whose aim is to act in a broad manner in all questions with a scientific nature, with an emphasis on the social sciences, administration, law, and economy, contributing to the socioeconomic development of the country. Head Office Praia de Botafogo 190, Rio de Janeiro RJ, CEP ou Caixa Postal CEP Tel: (21) Founding President Luiz Simões Lopes President Carlos Ivan Simonsen Leal Vice-Presidents Sergio Franklin Quintella, Francisco Oswaldo Neves Dornelles e Marcos Cintra Cavalcante de Albuquerque

4 BRAZILIAN STATE THE STRUCTURE OF THE BUREAUCRACY OF THE BRAZILIAN STATE AN ANALYSIS OF PUBLIC EMPLOYMENT

5 OVERVIEW The Structure of the Bureaucracy of the Brazilian State is the first study in a series by FGV/DAPP about Brazilian bureaucracy, produced on the basis of data about the various levels and administrative spheres of public employment in Brazil. The aim of this series of studies is to shed some light on the public service in the three levels of the Federation and also among the three powers, offering contributions to the debate about the size of the Brazilian state and the quality of the services provided by this bureaucratic body, in a comparative perspective with the rest of the world. It is thus intended to seek responses to the most recurrent concerns in the Brazilian public debate, above all at a moment when discussions about reforms in the Brazilian state and its bureaucracy have returned to center stage. Among the results found in this first stage of the research, one that most stood out was related to the role of municipalities within the federative pact currently in force in Brazil. According to the survey, the number of municipal employment positions grew by 210% between 1998 and 2014, tripling the total employees at this level. Per capita annual expenditure (how much each Brazilian pays to maintain this structure) rose from R$216 to R$671. This growth is a reflection, amongst other things, of the municipalization of services stipulated in the 1988 Constitution, highlighting an overload of responsibilities at the tip of the federative structure. In this context, municipalities are induced to hire more public employees in order to meet the growing demand of society for high quality public services, but pay badly due to their reduced fiscal capacity in comparison with the other governmental spheres. Finally, the study makes a comparison between the number of municipal public employees per thousand inhabitants in every Brazilian state capital. There is also a special focus on the city of Rio de Janeiro, especially the comparison of data on personnel expenditure with the other Brazilian state capitals. The data was published at the beginning of September 2016 in O Globo as part of a partnership between FGV/ DAPP and the newspaper to cover the municipal elections. 5 DEPARTMENT OF PUBLIC POLICY ANALYSIS

6 EVOLUTION OF PUBLIC EMPLOYMENT This section, the first of this study, shows the evolution of public employment between 1998 and 2014, based on data from RAIS, which is part of the Ministry of Labor. Presented in the figures below is data about the number of general public employees and per administrative level (federative entity). The charts below show the growth in the amount of public employees in Brazil between 1998 and During this period, there was an increase of 71.6% in the number of public employees in Brazil. Municipalities had the steepest rise (around 210%), almost tripling in size. Number of employees ( ) Public Employees Brazil milion Levels of Public Administration milion Federal State Municipal Source: MTE/RAIS( ) THE STRUCTURE OF THE BUREAUCRACY OF THE BRAZILIAN STATE: AN ANALYSIS OF PUBLIC EMPLOYMENT 6

7 The following figures show the development of annual average earnings (payment) per position. It can be seen that in Brazil, as a whole, there was an increase in the average earnings of public employees after 2003, reaching the level of R$43,500 in According to the survey, federal employees are the best paid, while municipal receive the lowest earnings. Annual earnings per position ( ) Public Employees Brazil thousand Levels of Public Administration thousand Federal State Municipal Source: MTE/ RAIS( ) 7 DEPARTMENT OF PUBLIC POLICY ANALYSIS

8 Over the years, annual expenditure on wages increased at all levels of public administration, in all regions of the country, and in the three spheres of federal public administration. The figures below show the growth of this expenditure. Between 1999 and 2014, there was a total increase of around 167% (in real values), rising from R$ billion to R$ billion. In the comparison between the federative bodies, states have the highest expenditure, but municipalities had the highest rate of growth, according to the survey. Annual expenditure on public employee pay ( ) Public Employees Brazil bilion Levels of Public Administration bilion Federal State Municipal Source: MTE/ RAIS( ) THE STRUCTURE OF THE BUREAUCRACY OF THE BRAZILIAN STATE: AN ANALYSIS OF PUBLIC EMPLOYMENT 8

9 In the attempt to measure the efficiency of Brazilian public employment between 2000 and 2014, two indexes were analyzed: (a) the distribution of the number of Public Employees among the Brazilian population; (b) annual per capita expenditure with the public machine, in other words, per Brazilian citizen. First, the number of positions per each thousand inhabitants it is examined. In Brazil, the proportion increased by 41.85% between 2000 and In relation to administrative levels, the number of municipal employees more than doubled during the same period, reaching 24 employees per thousand inhabitants. State and federal employees had a slower rate of growth over the years. Employment positions per thousand inhabitants ( ) Public Employees Brazil Employment positions Levels of Public Administration Employment positions Federal State Municipal Source: MTE/ RAIS( ), IBGE 9 DEPARTMENT OF PUBLIC POLICY ANALYSIS

10 In relation to annual per capita expenditure with public employee payroll, there was growth a higher than 100% between 2000 and 2014, rising from R$ to R$ Annual per capita expenditure ( ) Public Employees Brazil 2,000 1,900 1,800 1,700 1,600 1,500 1,400 1,300 1,200 1,100 1, Levels of Public Administration Federal State Municipal Source: MTE/ RAIS( ), IBGE THE STRUCTURE OF THE BUREAUCRACY OF THE BRAZILIAN STATE: AN ANALYSIS OF PUBLIC EMPLOYMENT 10

11 The figure below shows that at least three out of four public employees in Brazil are contracted in a statutory system. Municipal administration is the sphere with the lowest percentage of statutory employees (63.9%), and the highest proportion of CLT and non-permanent employees, which suggests that municipal administrators are searching for alternatives to increase services provided. Contracting systems (2014) Public Employees 10.89% 13.78% 75.33% Statutory Non-Permanent CLT Municipal 18.48% 17.66% 63.86% Statutory Non-Permanent CLT Source: MTE/ RAIS(2014) 11 DEPARTMENT OF PUBLIC POLICY ANALYSIS

12 MUNICIPAL EMPLOYEE PROFILE The second part of the study presents a brief profile of municipal public employees focusing on the city of Rio de Janeiro. Comparative methodology is still used, but now between Brazilian capitals. Firstly, we present the different administrative spheres of Brazilian municipal employees in As was to be expected, it can be observed that 95.29% of municipal employees are from the Executive. Shortly afterwards, two important variables are presented to compare the Brazilian state capitals: employment positions per thousand inhabitants and average income. This short analysis can also be visualized per region of Brazil. Finally, we trace a profile of the municipal employees in Rio working for the Executive. Others Outros 0.99% Autarquias Agencies 1.64% Legislature Legislativo 2.07% Area Administrative spheres Executive Executivo 95.29% 95.29% Source: MTE/ RAIS(2014) THE STRUCTURE OF THE BUREAUCRACY OF THE BRAZILIAN STATE: AN ANALYSIS OF PUBLIC EMPLOYMENT 12

13 This section reveals the distribution of municipal employees from the Executive in Brazilian state capitals, offering a panorama of public employment in these municipalities. The first figures show the number of employment positions per thousand inhabitants; the second ones, the average earnings of public employees per capital. It can be noted that the city of Rio de Janeiro is the second city in the Southeast region in the number of employment positions per thousand inhabitants. The city of Vitória occupies the highest rank in this index. On the other hand, the employment positions which correspond to these cities are the lowest paid among the cities of the southeast region. The municipal employes in Rio have average earnings of R$3.450,00. Distribution of municipal employees Positions per thousand inhabitants Brazil João Pessoa Vitória Palmas Porto Velho Boa Vista Goiânia Cuiabá São Luís Macapá Curitiba Teresina Campo Grande Natal Aracaju Florianópolis Maceió Recife Rio de Janeiro Belo Horizonte Belém São Paulo Rio Branco Manaus Porto Alegre Fortaleza Salvador Brasília 38,88 35,35 32,68 26,2 23,46 21,33 21,26 20,83 18,98 18,45 18,36 17,49 16,83 16,52 16,39 15,48 15,25 14,33 13,46 12,44 12,22 11,94 11,41 11,2 10,72 7, Positions North Palmas Porto Velho Boa Vista Macapá Belém Rio Branco Manaus 32,68 26,2 23,46 18,98 12,44 11,94 11, Positions Source: MTE/ RAIS(2014) 13 DEPARTMENT OF PUBLIC POLICY ANALYSIS

14 Distribuição de servidores municipais Average earnings Brazil Porto Alegre Florianópolis São Paulo Campo Grande Belo Horizonte Salvador Curitiba Fortaleza Manaus Rio de Janeiro Aracaju Vitória Teresina Recife Rio Branco Maceió Goiânia Natal Palmas Belém Macapá Porto Velho Cuiabá São Luís Boa Vista João Pessoa Brasília 5,97 4,76 4,05 4,04 3,95 3,91 3,82 3,72 3,62 3,45 3,17 3,14 3,14 3,04 2,86 2,85 2,84 2,83 2,80 2,76 2,66 2,62 2,38 2,35 2,03 1, North Manaus Rio Branco Palmas Belém Macapá Porto Velho Boa Vista 3,62 2,86 2,8 2,76 2,66 2,62 2, Source: MTE/ RAIS(2014) E THE STRUCTURE OF THE BUREAUCRACY OF THE BRAZILIAN STATE: AN ANALYSIS OF PUBLIC EMPLOYMENT 14

15 Northeast João Pessoa São Luís Teresina Natal Aracaju Maceió Recife Fortaleza Salvador 38,88 20,83 18,36 16,83 16,52 15,48 15,25 10,72 7, Positions Center-west Goiânia Cuiabá Campo Grande 21,33 21,26 17, Positions Southeast Vitória Rio de Janeiro Belo Horizonte São Paulo 35,35 14,33 13,46 12, Positions South Curitiba Florianópolis Porto Alegre 18,45 16,39 11, Positions Source: MTE/ RAIS(2014) 15 DEPARTMENT OF PUBLIC POLICY ANALYSIS

16 Northeast Salvador Fortaleza Aracaju Teresina Recife Maceió Natal São Luís João Pessoa 3,91 3,72 3,17 3,14 3,04 2,85 2,83 2,35 1, Center-west Campo Grande Goiânia Cuiabá 4,04 2,84 2, Southeast São Paulo Belo Horizonte Rio de Janeiro Vitória 4,05 3,95 3,45 3, South Porto Alegre Florianópolis Curitiba 5,97 4,76 3, Source: MTE/ RAIS(2014) THE STRUCTURE OF THE BUREAUCRACY OF THE BRAZILIAN STATE: AN ANALYSIS OF PUBLIC EMPLOYMENT 16

17 Finally, the figures below show the profile of public employees from the Executive in the municipality of Rio de Janeiro, focusing on gender, education, age group, type of contracting, income, and time employed. Profile of public employees in the municipality of Rio de Janeiro 2014 Gender 23.15% 76.85% Female Male Education 0.34% 1.40% 5.03% 5.59% 5.68% 81.97% Incomplete Second Level Up to 5th Grade Incomplete Fundamental Education Complete Fundamental Education 6 9 Grade Incomplete Fundamental Education Incomplete Third Level Complete Third Level Source: MTE/ RAIS(2014) 17 DEPARTMENT OF PUBLIC POLICY ANALYSIS

18 Age 0.94% 22.68% 16.28% 26.30% 33.80% or + Type of contract 1.68% 98.32% Statutory Non-Permanent Source: MTE/ RAIS(2014) THE STRUCTURE OF THE BUREAUCRACY OF THE BRAZILIAN STATE: AN ANALYSIS OF PUBLIC EMPLOYMENT 18

19 Average income band (Minimum Wages) 3.48% 1.49% 10.56% 39.60% 44.87% or + Time in employment (years) 7.91% 10.90% 28.16% 6.74% 7.70% 11.83% 16.04% 10.72% or + Source: MTE/ RAIS(2014) 19 DEPARTMENT OF PUBLIC POLICY ANALYSIS

20 METHODOLOGICAL NOTES The data used in this study is extracted from RAIS ( ) and the principal research unit in a large part of this work is considered to be each employment position active in December of each year. Evidentially, when it was necessary to research the balance of employment positions, we considered the differences between the positions at the start and end of each year. To obtain the population in each region of the study, the IBGE population projection was used. The monetary values of the historic series were deflated to values of December According to the RAIS 2014 manual, adopted as public employees were those workers governed by the Single Judicial Regime (federal, state, and municipal) and the military, linked to the Single Pension System; employees governed by the Single Judicial Regime (federal, state, and municipal) and the military, linked to the General Social Security System, and non-permanent public employees (who can be dismissed ad nutum or who were hired by special legislation, not governed by the CLT). Moreover, the base of our study was restricted to the employees of the three powers (Executive, Legislature, and Judiciary) together with employees from agencies and public foundations (whether subject to public or private law), in the three administrative levels (federal, state, and municipal). RAIS provides the average income of each position. This variable was used to estimate the annual value spent on each position. For this, average income was multiplied by the number of months worked for each position. The analysis in this research were carried out using R software. SOURCES MTE/RAIS Years: IBGE Instituto Brasileiro de Geografia e Estatística Central Bank of Brazil do?method=preparartelalocalizarseries THE STRUCTURE OF THE BUREAUCRACY OF THE BRAZILIAN STATE: AN ANALYSIS OF PUBLIC EMPLOYMENT 20

21 TEAM FGV/DAPP Department of Public Policy Analysis Getulio Vargas Foundation DIRECTOR Marco Aurelio Ruediger Researchers Amaro Grassi Miguel Orrillo Rafael Martins de Souza

22 INNOVATION FOR PUBLIC POLICIES dapp.fgv.br +55 (21)