Posted by the PEFA Secretariat
Readers familiar with the PEFA Performance Measurement Framework will be aware that the main purpose of an assessment report is to provide the authorities with a high-level overview of the performance of the PFM system at a point in time. In many cases, this overview—which can be expected to highlight strengths and weaknesses found in the system—becomes the cornerstone of a dialogue with development partners about reform priorities.
But when a PFM system is generally weak, what should the priorities be? Where should reforms focus? Many practitioners would answer these questions by agreeing with the proposition put forward many years ago (and recently reiterated) by Allen Schick: “with the basics”. But what are “the basics”, and which of them should be addressed first?
A draft “Guidance Note on Sequencing PFM Reforms” has been developed by Jack Diamond, former IMF Fiscal Affairs Department Division Chief on behalf of the IMF and the European Commission, under the auspices of the PEFA Program, following an extensive period of research and debate around these issues between the PEFA Partners.
