Pfm reform and_donor_funding_in_post-conflict-fisc
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Pfm reform and_donor_funding_in_post-conflict-fisc



Presentation by Steven Symansky, formerly with the IMF on Public Financial Management good practices in fragile states

Presentation by Steven Symansky, formerly with the IMF on Public Financial Management good practices in fragile states



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Pfm reform and_donor_funding_in_post-conflict-fisc Presentation Transcript

  • 1. PFM Reform and Donor Funding in Fragile Countries: Recommendations Derived From Personal Observations Presentation Developed for FISC Conference By Steven Symansky
  • 2. Overview
    • Background
      • How is this paper different?
      • What is different about post-conflict countries?
    • Recommendations
      • 12 of them – will focus primarily on those related to GFMIS
        • The Importance of a computerized GFMIS in post-conflict or fragile states
      • Some are post–conflict specific
      • Others are just good PFM principles
  • 3.
    • My background
    • Paper derived from personal experience in 5 post-conflict countries
    • Mostly inaugural mission to establish fiscal management – develop a MoF
    Overview Background
  • 4. What is different about PC and Fragile countries?
    • Missing or weak human/physical capital
    • Massive foreign influx of “ experts ” and funds
    • Limited source of domestic revenue
    • Emphasis on stability/security and not development
  • 5. While the paper proposes recommendations…
    • No one size fits all – but no harm in borrowing what works elsewhere
    • Best is the enemy of the good
  • 6. Lessons/Recommendations
    • General PFM
    • Use existing structures, including the legal framework whenever possible
    • Budget execution is more critical than budget preparation – computerization can help
      • An aside on Freebalance
    • Transparency enhanced and corruption opportunities reduced if strong focus on budget execution
  • 7. Lessons/Recommendations (cont)
    • Donor/TA Issues
    • Donors should use trust funds and rely on government systems
    • Donors should report to government using the government ’ s chart of accounts
      • Challenge is to incorporate into government reporting when expenditures do not go through system
    • Donor coordination in TA is important
    • International experts may take on line or near- line positions but need to be qualified
    • Avoid pushing higher level reforms until the basics are in place
  • 8. Lessons/Recommendations (cont)
    • General Points
    • Political buy-in of PFM systems can help, but successful implementation can produce political support
    • Avoid overly centralized control and micro managing
    • Work within the existing civil service structure
    • Keep revenue policy simple and practical and donors should be taxpayers