World Bank

November 21, 2013

Budgeting in the Real World - What Do We Know? What Should We Do?

This is the keynote speech given last week, November 13th, by Antoinette Sayeh, Director of the IMF’s African Department at the UK’s Overseas Development Institute’s annual CAPE Conference in London on why PFM matters, why reforms are difficult, and what we know to make them successful…..

Sayeh

I am delighted to have the opportunity to deliver this keynote address and would like to thank Messrs. Ed Hedger, Kevin Watkins, and Philip Krause for inviting me to this important conference and for that generous introduction.

Let me start by saying that from the IMF’s perspective, good governance is important for countries at all stages of development. Transparent government accounts and effective public resource management are preconditions for sustained economic growth and prosperity. Indeed, budget formulation, implementation, and oversight lie at the core of good economic governance. Strong budget institutions are essential for countries to achieve sound fiscal policies and effective expenditure programs. Budgets can only be spent once. Getting the priorities right all the way from formulation to execution, and being efficient at it, is all the more important. Transparency and fairness are most important in ensuring that expenditures are aligned with broadly agreed priorities, and in securing society’s buy-in. While most can agree to the underlying principles, the hard part is to have systems and capacity in place that actually ensure that they are respected all along the process chain. As so often, the devil is in the detail. 

Continue reading "Budgeting in the Real World - What Do We Know? What Should We Do?" »

November 04, 2013

The FMIS Community of Practice Moves On

Posted by Cem Dener[1]

FMIS CoP banner
September 2013 marked the 3rd anniversary of the Financial Management Information Systems (FMIS) Community of Practice (CoP). Thanks to the continued support and participation of a diverse group of practitioners, the FMIS CoP has become an increasingly relevant and steadily growing community.

Etienne Wenger[2] summarizes Communities of Practice (CoP) as “groups of people who share a concern or a passion for something they do and learn how to do it better as they interact regularly.” Three components are required in order to be a CoP: (i) the domain, (ii) the community, and (iii) the practice. The FMIS “domain” is an integral part of e-Government initiatives. The FMIS “community” benefits from a website to share knowledge and enable members to learn from each other. FMIS “practitioners” interact through CoP events and the website to improve the quality and performance of their activities by exchanging information on good practices, and experiences gained in the design and implementation of FMIS solutions. The FMIS CoP is also focused on the development and dissemination of leading-edge knowledge products. All three components are essential to ensure the sustainability of the CoP platform.

Continue reading "The FMIS Community of Practice Moves On" »

October 10, 2013

Annual Meetings Kicks Off with Talks on Fiscal Transparency

Posted by Rachel F. Wang

Many of the key players committed to promoting greater fiscal transparency met on Tuesday for one of the first events of the 2013 IMF-World Bank Annual Meetings.

The Joint IMF-World Bank Seminar entitled “Strengthening Fiscal Transparency and Government Accounting” brought together representatives from international organizations, national governments, think tanks, professional organizations, and civil society to discuss how to promote greater fiscal openness and improve the information base for fiscal decision-making.

The event was kicked off with a welcome address from Bertrand Badré, Managing Director and World Bank Group Chief Financial Officer, and included two panel discussions on

  • Strengthening fiscal transparency standards and practices chaired by Richard Hughes, Division Chief in the IMF’s Fiscal Affairs Department), and
  • Improving government accounting chaired by Chuck McDonough, Vice President and Controller at the World Bank). 

Panelists included Moritz Kramer from Standard & Poor’s, Phil Sinnett from the PEFA Secretariat, Vivek Ramkumar from the International Budget Partnership, Jo Marie Griesgraber from New Rules for Global Finance Coalition, Devantri Kaur Santa Sigh from the Malaysian Ministry of Finance, Gerhard Steger from the Austrian Ministry of Finance, Fayez Choudhury from IFAC, and Ron Salole from IPSAS board.

Discussions ranged over a variety of areas, including the revision of the IMF’s fiscal transparency code and new fiscal transparency assessment; how fiscal transparency feeds into credit ratings and vice versa; the harmonization of different transparency-related norms and standards; the role that civil society has played in promoting greater fiscal openness by governments; and the opportunities and challenges in moving from cash to accrual accounting.

The keynote address, given by Gerd Schwartz, Deputy Director of the IMF Fiscal Affairs Department set the tone for the morning’s discussion.  The text of his speech is provided below:

I would like to use this opportunity to talk about the importance of fiscal transparency for fiscal sustainability and discuss the work underway to improve both standards and practices.  More specifically, there are four issues I would like to cover:

  • First, I would like to highlight the progress made in promoting greater fiscal transparency over the past decade, thanks to collective efforts of many of the organizations represented in this room.
  • Second, I would like to discuss some of the lessons of the economic crisis regarding the adequacy of existing fiscal transparency standards and practices.
  • Third,  I would like to provide you with an update of the IMF’s ongoing work on strengthening its evaluation tools in the fiscal transparency area; and
  • Finally, I would like to review the broader agenda on fiscal transparency and government financial disclosure.

Continue reading "Annual Meetings Kicks Off with Talks on Fiscal Transparency" »

September 17, 2013

FOTEGAL: Sharing Experiences of Treasury Management in Latin America

Posted by Israel Fainboim

Latin American budget officials are members of an association (Asociacion Internacional de Presupuesto Público—ASIP) which delivers an annual international seminar and regional seminars and publishes its own journal. Recently, the countries of the region together with two multilateral donors (the Inter American Development Bank and the World Bank) joined forces with the Fiscal Affairs Department (FAD) of the IMF to set up a similar organization for state treasurers.

That is how the Government Treasury Forum of Latin American (FOTEGAL) was born in 2010. The organization was formalized in a document named the Lima Declaration and through the approval of its own statutes. A total of 16 countries are currently members of FOTEGAL (Argentina, Bolivia, Chile, Colombia, Costa Rica, the Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, and Uruguay) and an invitation has been extended to Brazil to join (this country has participated in several of the annual seminars). The Government of Japan (JSA) has also been a key financial supporter of the activities of FOTEGAL. In addition, the IDB is supporting the development of FOTEGAL’s website. A link to this network and many of the documents and presentations made for FOTEGAL already exists within the website of one of the government treasuries, and a separate web page is under construction.

Continue reading "FOTEGAL: Sharing Experiences of Treasury Management in Latin America" »

September 06, 2013

PFM Innovations: ICGFM Issues Call for Speakers at its Upcoming Conferences

Posted by David Nummy, ICGFM Vice-President for Programs

ICGFM
One outcome of the global financial crisis has been recognition that Public Financial Management is critical to management of the fallout as well as to prevent future crises.   With greater attention, new approaches to the core elements of the PFM cycle have been employed and interest has grown in the experience of countries around the world in meeting the challenges of effectively managing resources in a manner that is transparent.   ICGFM will explore the innovations in PFM that have emerged as well as practices that are recognized as effective.

The International Consortium on Governmental Financial Management (ICGFM) has issued a call for speakers, panels, and presentations that address good practices in public financial management. As this topic will cover both of its upcoming conferences, proposals are solicited for both the winter conference in Washington, DC from December 9-11, 2013, and the 28th Annual International Training Conference in Miami in May 2014.  The Winter Conference will be held at the International Monetary Fund and is conducted in partnership with the Fiscal Affairs Department (FAD).

Continue reading "PFM Innovations: ICGFM Issues Call for Speakers at its Upcoming Conferences" »

August 15, 2013

The Long and Winding……..Fight Against Corruption

Posted by Chris Iles

Corruption is a global scourge.  In the public sector it can be defined as the diversion of public resources or the misuse of public authority for personal gain. It threatens political, social and economic stability, and undermines economic growth and development by distorting the delivery of public goods and services. Transparency International calls it one of the major threats facing society and has worked hard to focus international attention on reducing corruption in the public sphere. Preventing corruption has become a key policy priority for donors, especially in fragile or conflict-affected countries.

A recent paper[1] by Norway’s U4 Anti-corruption Resource Centre reviews how much we know about the effectiveness of different anti-corruption interventions.  The answer seems to be “not much”.  The paper reviews the fairly scant literature on the impact on corruption of various reforms such as direct budgetary support, PFM technical assistance, using donor systems and applying international norms. Evidence presented by the reviewed literature suggests that most anti-corruption measures are of disputable benefit.

The notable outlier seems to be PFM reform; there is, according to the study, (relatively) strong evidence that PFM reforms have a substantial anti-corruption impact. This is gratifying for PFM practitioners but also somewhat surprising since reducing corruption is not the explicit goal of PFM reform.

Continue reading "The Long and Winding……..Fight Against Corruption" »

August 03, 2013

PPPs on the Balance Sheet, Please!

Posted by Tim Irwin

Public-private partnerships create a practical problem for public financial management, because their fiscal costs are deferred. Instead of paying for a project during its construction, the government starts to pay only when construction is complete, which may be four or five years after any deal is signed. That means that the main tool of public financial management—budget scrutiny—can’t be used to ensure that PPPs are affordable and a better use of public money than the alternatives. For PPPs with long construction periods, even the analysis of medium-term spending plans doesn’t help.

So what can be done to ensure that the budgetary implications of PPPs are properly considered?

The World Bank Group has just published an Operational Note on managing fiscal commitments from PPPs that helps answer this question. It looks at how these fiscal commitments can be assessed and monitored, whether they are commitments to pay for the availability of a service or to protect a PPP company from certain risks. The Note gives examples of the tasks that can be carried out by different government agencies, such as budget departments, debt-management offices, and PPP units. And it considers the kinds of rules that can be put in legislation to help ensure that the right assessment and monitoring occurs.

However, the Operational Note does not take a position on whether or not PPPs should be put on the government’s balance sheet. Budgeting and Reporting for Public-Private Partnerships by Katja Funke, Isabel Rial, and me argues that they typically should be.

Continue reading "PPPs on the Balance Sheet, Please!" »

July 23, 2013

Now You See It, Now You Don’t...

Posted by Cem Dener and Saw Young (Sandy) Min [1]

Cem dener
The World Bank Study “Financial Management Information Systems and Open Budget Data: Do governments report on where the money goes?” (completed in June 2013) and new data set are now publicly available from the FMIS Community of Practice or the World Bank PRMPS Public Finance web site.

Within the last decade, FMIS has become a critical part of improving budget transparency. Disclosure of public finance information to citizens through FMIS platforms can improve transparency, if the published budget data are accurate, easily accessible and meaningful. Fiscal transparency can in turn improve trust in government, if the public interpret the motives for publishing the information positively, and an open budget data policy is sustained for long periods. Despite all efforts, designing robust FMIS solutions to capture all financial activities and publish open budget data, and measuring the effects of FMIS on budget transparency continue to be major challenges.

Continue reading "Now You See It, Now You Don’t..." »

June 24, 2013

Successful International PFM Workshop for IFMIS Coordinators at IDB

Posted by Carlos Pimenta[1]

This event, which took place in Washington, DC from May 15-17, discussed the PFM challenges faced in modernizing Integrated Financial Management Information Systems (IFMIS), as they relate to technology, public accounting, treasury and budget. The workshop was attended by about 120 participants, including IFMIS coordinators from 17 countries in Latin America and the Caribbean, private consulting firms, international experts and staff from IDB, IMF and World Bank.

The agenda of the event included topics such as: (1) How to measure progress in efficiency and quality of PFM reforms and systems? (2) The role of IFMIS in cost systems and result-based management, (3) Technological advances in IFMIS development, (4) Budget transparency and accountability, (5) Definitions, techniques and regulatory framework for interoperability and its impact on IFMIS context, (6) Change management and IFMIS implementation, and (7) Service management, maintenance and support for IFMIS.

All presentations, speakers and other information can be reached using the links in the Final Report attached below (in English and Spanish) or here

Continue reading "Successful International PFM Workshop for IFMIS Coordinators at IDB" »

May 15, 2013

FMIS Choice: the Dangers of In-House Development in Low-Capacity Countries

Posted by Lewis Murara and Christopher Iles[i]

A major decision faced by many countries is what sort of Financial Management Information System (FMIS) they should develop to support their PFM reform efforts. The decision is more difficult in low-capacity countries where implementing an FMIS can have a disproportionate impact on management, operations, and operating costs.

There are three general FMIS options that governments can consider:

  • Bespoke, i.e. own developed software solutions
  • Customized “enterprise resource planning” (ERP) systems
  • Non-customized COTS systems

In making the decision, recent studies[1] have demonstrated that there is no single best solution. Over a decade or so, the tendency in many Latin American countries has been for in-house development of their FMIS, while Africa has preferred commercial off-the-shelf solutions (COTS) and developed countries have tended to favor customized ERPs.

Continue reading "FMIS Choice: the Dangers of In-House Development in Low-Capacity Countries" »

May 08, 2013

Upcoming Event: International Workshop on Government Performance Management, July 1-12, 2013, New Delhi

Posted by Bill Dorotinsky, The World Bank

Indialogo
The Institute of Public Enterprise (IPE), Hyderabad, and the Performance Management Division (PMD), Cabinet Secretariat, Government of India, are collaborating to organize the ‘International Workshop on Government Performance Management’ from July 1-12, 2013. The enclosed brochure gives the details of this workshop.

This workshop is a unique training program that will cover a wide range of issues that concern the design and implementation of effective performance management in government. As part of its administrative reforms, India has implemented one of the most far reaching systems called the ‘Performance Monitoring and Evaluation System (PMES)’ for government departments.

This training program will compare and contrast this experience with similar experiences in developed and developing countries. It will discuss the entire eco-system that is required for designing and implementing an effective performance management system in Government. We believe that a training program of this caliber and quality has never been organized on this subject anywhere in the world.  As you can see from the enclosed brochure, we have carefully chosen the topics and invited some of the leading theoreticians and practitioners to share their experience with workshop participants.

Continue reading "Upcoming Event: International Workshop on Government Performance Management, July 1-12, 2013, New Delhi" »

April 03, 2013

Make Way for the Hybrids

Posted by Matt Andrews. This article was originally published by Foreign Policy on April 2, 2013.

Development experts are often quick to focus on the role of institutions. They are, simply put, the "rules of the game" derived over time that drive politics, economics, and other social interactions. Social scientists like Douglass North, Daron Acemoglu, and Jim Robinson have shown that these rules strongly influence how countries grow and develop. Over decades, theorists and development practitioners have compiled what one might consider a script of the "right" rules and institutions needed to foster economic growth and open societies with good governments that advance the needs of their citizens. But despite all the good intentions, this western-created game plan hasn't quite worked out as expected. 

Organizations like the World Bank have supported institutional reforms in developing countries for more than two decades now, often making it the backbone of their development agendas. Such work accounts for billions of dollars of development spending each year, devoted to creating democratic electoral processes, robust public financial management systems, effective anticorruption regimes, and other new rules of the game in countries ranging from Afghanistan to Uganda. 

At first glance, many of these reforms seem to have yielded success. In Afghanistan, for example, new laws adopted after 2003 have modernized the government's budgeting and financial management system. The system's quality was ranked "higher than a middle-income country" in a 2008 assessment using the multi-donor Public Expenditure and Financial Accountability (PEFA) framework, which compares countries' governance systems with what is considered "international good practice." Similarly, Uganda's anticorruption reforms have produced new laws that donors tout as world-class. The think-tank Global Integrity rated these laws as best in the world in 2008, giving them a perfect 100 score. Canada scored 90; Italy got 82. 

Continue reading "Make Way for the Hybrids" »

March 25, 2013

Is Europe Ready for EPSAS?

Posted by Franck Bessette[1]

The sovereign debt crisis has underlined the need for governments of the European Union (EU) to clearly demonstrate their financial stability and for more rigorous and more transparent reporting of fiscal data. The EU promotes a system of harmonized accruals-based accounting standards for all entities of the government sector. IPSAS is currently the only internationally recognized set of standards. It is founded on the international financial reporting standards (IFRS), widely applied by the private sector, and at present comprises 32 accrual-based accounting standards, plus one cash-based standard. A recent report by the European Commission assesses the suitability of IPSAS for the Member States.  

The report notes that 15 out of 27 EU Member States already make some link to IPSAS. Of these countries, nine have national standards based on or in line with IPSAS, five make some references to it, and one country uses IPSAS in accounting at the local government level. However, despite recognition of the high value of IPSAS, no Member State has implemented the standards in full. Fully harmonized accrual-based public-sector accounting would provide a firmer basis for evaluating the financial position and performance of government activities at all levels.

Continue reading "Is Europe Ready for EPSAS?" »

January 24, 2013

Job Offer: Financial Management ETC Based in San Salvador, El Salvador (World Bank Job # 130174)

Posted by T.K. Balakrishnan, Manager, Financial Management, Latin America and Caribbean Region, World Bank

WB1
The World Bank has an opening for a Financial Management Extended Term Consultant (FM-ETC) based in San Salvador, El Salvador. Job description and qualifications are detailed in the job announcement, posted on the World Bank's website: Financial Management ETC based in San Salvador, El Salvador --  Job # 130174

The Closing Date is February 17, 2013.

For convenience, we provide the PFM Blog readers with excerpts from the Job Announcement.

Continue reading "Job Offer: Financial Management ETC Based in San Salvador, El Salvador (World Bank Job # 130174)" »

January 17, 2013

How Can the Pace of Budget Transparency Be Increased? Examining the Results of the Open Budget Survey 2012

Posted by Vivek Ramkumar

IBP WB medium


The International Budget Partnership (IBP) and the World Bank Institute (WBI) are pleased to invite you to join practitioners in the fields of development and fiscal management in a discussion on how to increase budget transparency and participation around the world. The discussion will include a presentation of the results of the IBP’s latest round of the Open Budget Survey and then focus on indentifying innovative and practical suggestions for rapidly improving country performance on the Survey.

Date: 5 February 2013
Time: 9.30-11 am (Breakfast will be served from 9 am)
Venue: IFC Auditorium, 2121 Pennsylvania Avenue, Washington D.C.

There is growing interest in the role of open budgeting systems in development. An increasing body of evidence shows that the best way to manage public funds efficiently and equitably is through budget systems that are transparent, inclusive, and monitored through independent oversight institutions. Recent research studies also show that transparency can help to attract easier and cheaper international credit and thereby increase public revenues. On the other hand, lack of fiscal transparency can undermine fiscal discipline,increase borrowing costs, and promote opportunities for corruption and other leakages.

Continue reading "How Can the Pace of Budget Transparency Be Increased? Examining the Results of the Open Budget Survey 2012 " »

January 14, 2013

Job Offer: Financial Management Analyst Based in Buenos Aires, Argentina (World Bank Job # 130068)

Posted by T.K. Balakrishnan, Manager, Financial Management, Latin America and Caribbean Region, World Bank

World bank
The World Bank has an opening for a Financial Management Analyst (FMA) based in Buenos Aires, Argentina. Job description and qualifications are detailed in the job announcement, posted on the World Bank's website (click on this link): Financial Management Analyst based in Buenos Aires, Argentina --  Job # 130068

The Closing Date is January 29, 2013.

For convenience, we provide the PFM Blog readers with excerpts from the Job Announcement.

Continue reading "Job Offer: Financial Management Analyst Based in Buenos Aires, Argentina (World Bank Job # 130068)" »

December 17, 2012

Towards Better Public Expenditure Management: Experience Across Asia

Posted by Suhas Joshi  and Greg Smith

Despite heavy snowfall, government officials from mostly warm countries landed in Seoul for a high-level conference on how to improve public expenditure management (PEM) in the region. The event convened member nations of the Public Expenditure Management Network in Asia (PEMNA). The network, launched in June 2012 in Bangkok, provides opportunities for practitioners across the region to share knowledge and experiences in implementing PEM reforms. PEMNA is modeled on the PEMPAL network that has been operating successfully in central and eastern Europe for several years.

PEMNA comprises two communities of practice (CoPs). The budget CoP is managed by the World Bank, and the Treasury CoP by the IMF. PEMNA’s Steering Committee provides strategic oversight and governance. The Korea Institute of Public Finance (KIPF), a research and training institute associated with the Korean Ministry of Strategy and Finance, provides the secretariat for PEMNA and the two CoPs, and is supported in its work by development partners including the World Bank, AusAID, the IMF, and the OECD.

The demand-driven nature of the network allows members to focus dialogue on solving practical implementation issues.  By sharing common experiences and benchmarking performance with peers, members are able to deepen their understanding of the reform process. Across the budget and treasury areas members recognize that they cannot rely on theory alone and that the cross-fertilization of ideas is essential for the successful design and implementation of reform.

Continue reading "Towards Better Public Expenditure Management: Experience Across Asia" »

December 12, 2012

MTEF: Better Than Sliced Bread?

Posted by Richard Allen

Richard Hemming is a co-author of the World Bank’s recently published Beyond the Annual Budget: Global Experience with Medium-Term Expenditure Frameworks. In this conversation with Richard Allen, he talks about the book, the analytical work carried out, and the policy implications.

RA: You are one of the authors of this book. What was your specific role in preparing it?

RH: The team that worked on the book was large. Jim Brumby was the team leader and I was the lead consultant. We were the only people involved in all aspects of the work for the duration of the project. My main roles were to provide guidance on the overall approaches to the book’s analysis, to contribute to some of the analysis, to coordinate the drafting of the book, and to write a significant part of it. The only two areas in which I was not extensively involved were the detailed econometric analysis, for which we put together a really accomplished team, and the assessment of Bank advice on MTEFs. Overall, the book should be viewed very much as a team effort.

Continue reading "MTEF: Better Than Sliced Bread?" »

September 06, 2012

Has Global PFM Improved in the Last Decade?

Posted by Sanjay Vani

It is relatively easy to spot the trajectory of Public Financial Management (PFM) progress in any given country but how do we get a sense of the global trend during the last decade? A very useful and reliable source of information is provided by the World Bank’s Country Policy and Institutional Assessment (CPIA)[1] database. CPIA data offers a more complete source of comparative information than Public Expenditure and Financial Accountability (PEFA) assessments, data on which began to be collected only in 2005. 

The CPIA exercise is conducted annually for all the Bank’s borrowing countries. It has evolved into a set of criteria which are grouped in four clusters: (a) economic management; (b) structural policies; (c) policies for social inclusion and equity; and (d) public sector management and institutions. Ratings for each of the criteria focus on the quality of each country’s current policies and institutions. CPIA is the only measurement tool that provides an annual numerical rating for the quality of PFM and other aspects. The annual CPIA exercise is informed by various available diagnostics including PEFA assessments and, as such, provides a good basis for analyzing trends in PFM.

Continue reading "Has Global PFM Improved in the Last Decade?" »

June 29, 2012

Public Financial Management Information System in Georgia

Posted by Nino Tchelishvili, Deputy Head of State Treasury, Ministry of Finance, Georgia  

After the Rose Revolution (2003) the new government of Georgia undertook a large number of reform initiatives targeted at strengthening PFM. MoF focused on further developing the institutional framework of the budget process in order to improve its credibility and the effective allocation of public resources. An FAD mission visited Georgia twice in 2004 and assisted the MoF in formulating its strategy for treasury reforms. An FAD technical expert was assigned to help implement the reform measures in the areas of: Treasury Single Account, Budget Classification, Commitment Control, Accounting Reforms, and Cash Planning and Management.

In parallel with developing the PFM institutional framework, including basic components of a modern treasury system, MoF and the State Treasury started considering measures for reforming the then rudimentary and fragmented treasury information system. The decision to introduce integrated information systems was taken in 2006. Development Partners (WB, SIDA, Netherlands and DFID) provided funds for the Public Finance Management Information System (PFMS) implementation project and MoF embarked on this long and exciting journey in 2007. External technical experts recommended procuring commercial off-the-shelf (COTS) packages and customizing them to local context.

Continue reading "Public Financial Management Information System in Georgia " »

June 15, 2012

PEFA NewsFlash No. 19 - PEFA Steering Committee launching Phase IV of the Program

PEFA Steering Committee launching Phase IV of the Program

The PEFA Steering Committee met for its ordinary six-monthly meeting on June 11-12, hosted and chaired by the World Bank. The meeting confirmed that all arrangements are in place for the transition to Phase IV of the Program, which will commence on July 1, including:

  • Approval of the publication of the PEFA Phase IV Program Document;  click on the link to access the [program document]
  • Confirmation of the establishment of the new trust fund to finance Phase IV;
  • Signing of the first agreement for contribution to the trust fund with SECO Switzerland to the tune of USD 3,588,000 for the five years of Phase IV;
  • Change of PEFA Secretariat management – Frans Ronsholt is leaving after more than six years as Head of Secretariat. Phil Sinnett has been appointed to succeed Frans as Head; he is well known to most PEFA Stakeholders, having joined the Secretariat in September 2009.  

The Steering Committee also took stock of the achievements during Phase III and discussed the work plan and budget for fiscal year FY13 (July-June) including a number of ongoing activities which will be carried over from Phase III.

The meeting ended with a toast of thanks to Frans for his vision for the Program, the tremendous contribution he has made to the success of Phases II and III, and his effective leadership of the Secretariat over the past six years: the Steering Committee also wished him every success in his future endeavors.

April 20, 2012

Georgian State Treasury Hosts Workshop on Treasury and External Financing Reforms

Posted by Ion Chicu, World Bank, and David Tsekvava, Deputy Head of State Treasury, Ministry of Finance, Georgia 

A three-day PEMPAL [1] Treasury Community of Practice (TCOP) workshop was held in Tbilisi, Georgia on February 27-29, 2012 on public finance reform progress related to Treasury systems and external financing.  Fifty participants from ten countries attended (Albania, Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan and Ukraine).  Experts from the World Bank provided information on regional and international developments and technical support to the discussions.  The meeting was hosted by the State Treasury of the Ministry of Finance of Georgia who proved to be warm and wonderful hosts.

The meeting followed from an earlier meeting in Astana, Kazakhstan on September 27-29, 2011 whereby more than 80 participants from 17 countries from the Bank’s Europe and Central Asia (ECA) region met to discuss progress in implementing integrated financial management information systems across the region. Many TCOP member countries are the recipients of external financing in various forms and a need was identified for a smaller group meeting to address the issues associated with the effective management of external financing.  The practical problems faced in the process of integrating external financing into national budget systems are widely known. In many cases the challenges are related to the fiduciary requirements of the donor organizations. National systems do not always fully fit those requirements, which leads to the use of parallel mechanisms, such as those often established to implement donor-funded investment projects.  Within the framework of public financial management (PFM) reforms, and consistent with the principles espoused by the Paris Declaration of Aid Effectiveness, PEMPAL member countries have been pursuing the objective of integrating external financing into all stages of the budget process. 

Continue reading "Georgian State Treasury Hosts Workshop on Treasury and External Financing Reforms" »

September 27, 2007

Public Financial Management and Anti-corruption: prevention through stronger PFM systems

New Picture (10)
Corruption is a hot  topic in international circles these days, and particularly with respect to country public finance systems. The IMF Fiscal Affairs Department has made a contribution to understanding how improvements in  public financial management systems can help fight corruption.

While  not an 'idiots guide to corruption',  a recent FAD staff paper (Dorotinsky,  William and Shilpa Pradhan), published in "The  Many Faces of Corruption: Tracking Vulnerabilities in the Sectors" (World Bank, 2007), explores the conditions of PFM systems that enable corruption to flourish, the ways corruption commonly manifests itself, and  develops a model for assessing the vulnerability of country PFM systems to  corruption.

Continue reading "Public Financial Management and Anti-corruption: prevention through stronger PFM systems" »

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