An Innovative Approach to Supporting Liberia’s PFM Reforms

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Posted by Lesley Fisher[1]

The IMF’s traditional approach to providing technical assistance (TA) has usually involved staff and experts traveling to a country, discussing various issues with government counterparts, and leaving a report, including recommendations, for the country to implement. This approach has been used extensively in Liberia since the mid-2000s and has been complemented by two resident experts, and numerous short-term experts, providing hands-on support in implementing the recommendations of the headquarters-based missions.

As is familiar to TA providers, officials in any Ministry of Finance have competing priorities during IMF missions. They have their regular duties to attend to, and they are often unable to devote their full attention to the visitors from Washington.  There is sometimes a sense of mission fatigue: many missions have come and gone over the past decade, and left similar recommendations.  Senior officials and political heads do not always have the time or inclination to study lengthy IMF reports. To quote one Liberian official, “FAD’s recommendations do not automatically translate into implementation.”

To overcome some of these challenges, the Liberian government proposed an alternative approach. At their request, FAD and the African Department of the IMF organized a two-week seminar in Washington for 14 Liberian officials from a number of ministries[2], the Central Bank, and the General Audit Commission of Liberia. The seminar took place from January 27 to February 9, 2016. Participants worked together with IMF staff to diagnose challenges relating to cash management, commitment control, fiscal reporting and public investment management—many of which centered on coordination between the various institutions of government and a lack of clarity in roles and responsibilities. These discussions resulted in a realistic assessment of capacity, a frank exchange of views on the reasons why TA advice has not always been implemented, and a credible action plan to address short- to medium-term challenges.

In addition to providing an opportunity for focused attention away from the daily demands of official duties, the seminar approach was very helpful in building consensus and strengthening relationships between FAD and the government officials. The Liberian delegates embraced the seminar format and committed to continuing the momentum created by the collaborative effort. They demonstrated strong ownership of the PFM reform measures discussed, and committed to share the seminar’s conclusions and recommendations with political heads and senior management in Monrovia.   

A few other issues are worth noting:

External resources from the EU and the Swedish International Development Cooperation Agency (Sida) were instrumental in funding the seminar.

[1]Senior Economist, PFM1 Division, Fiscal Affairs Department, IMF.

[2] The Ministries of Finance and Development Planning, Agriculture, Education, Health, and Public Works.

Note: The posts on the IMF PFM Blog should not be reported as representing the views of the IMF. The views expressed are those of the authors and do not necessarily represent those of the IMF or IMF policy.

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