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Public pension schemes and the suffocating job inflation!
Kifah Mahmoud
In most countries in the region, the modern state inherited an outdated bureaucratic model that consumes the majority of the public budget in the form of salaries and wages for employees who are more a burden than productive energy. Instead of public employment serving as a means to achieve development, it often became a political goal to buy loyalty or absorb unemployment, leading to massive inflation in the administrative apparatus, weak performance, and stagnation in the private sector.
It is time to propose realistic and innovative solutions that align with the nature of the financial and economic crises these countries are experiencing. One of the most prominent proposed solutions is the so-called "Job Purchase" project—a flexible, voluntary initiative aimed at reducing the number of public sector employees by offering attractive financial incentives for those willing to leave voluntarily, in exchange for one-time or staggered financial compensations.
**Core of the Project**
The project is based on allocating an annual budget of at least one billion dollars (potentially increased according to the country's capabilities), used as a sovereign incentive fund. Through this fund, voluntary exits are offered to employees in exchange for an enticing financial amount, for example, equivalent to 3 to 5 years of their salaries, along with technical and培训 support for those interested in entering the freelance market or investing in productive sectors, agriculture, trade, or tourism.
**Long-term Objectives**
- Reduce government spending by decreasing cumulative salaries in the public sector.
- Revive the private sector by transforming the workforce into entrepreneurship and free economic activities.
- Liberate public employment from being a permanent refuge, and restore the concept of public service as a professional duty, not merely a livelihood.
- Reduce corruption and disguised unemployment by decreasing the number of employees who do not provide genuine service.
Successful implementation requires transparent mechanisms, an independent fund, and legislation ensuring the rights of those stepping out of employment, along with strict financial and societal oversight to prevent manipulation of funds or coercion of employees to accept offers. Additionally, a media awareness campaign should promote a culture of entrepreneurial work and dispel fears of leaving the "state’s shelter."
The project could initially be tested in a specific region or sector (such as education, health, or municipalities) and its impact evaluated annually. Gradually, it could be expanded across other sectors. Over five years, the number of employees could decrease by 15 to 25% without forced measures or painful layoffs.
Unless the cycle of government employment as a permanent solution to unemployment is broken, the state budgets will remain hostage to salaries and support, without transforming into tools for development. The "Job Purchase" project is not a magic solution, but a smart and bold step toward genuine, gradual, and humane reform—balancing employees' needs with the state's interests and redefining the citizen-state relationship on productive, rather than rentier, foundations.
