Improving public sdctor accountability and results monitoring, the Peruvian ExperiencePresentation Transcript
IMPROVING PUBLIC SECTOR ACCOUNTABILITY AND RESULTS MONITORING, THE PERUVIAN EXPERIENCE Miami, May 2011
A CONSTITUTIONAL STATE NEEDS EFFICIENT, EFFECTIVE CONTROLS ON THE MANAGEMENT OF PUBLIC FUNDS . Treasury Inspector's Office of the Republic Supervises, watches and verifies public management actions and results. INTRODUCTION Impact on the Citizens JUDICIAL BRANCH JUDICIAL BRANCH JUDICIAL BRANCH PUBLIC BUDGET PUBLIC RESOURCES PUBLIC POLICIES PUBLIC AGENCIES
PERUVIAN MACROECONOMIC CONTEXT AND PUBLIC EXPENDITURES IN RECENT YEARS
GDP: 20 Years of Gross Domestic Product Growth Millions of US$ MACROECONOMIC CONTEXT Source : CENTRAL RESERVE BANK OF PERU / INTERNATIONAL MONETARY FUND 275,720 70,493 5 years of accelerated growth: 2004-2008
GDP: 9 years of rates of change of GDP consistently above the global average Peru (1) World (2) Source : (1)CRBP (2) IMF MACROECONOMIC CONTEXT
GDP Per Capita: Sustained Growth Over the Last Decade Projection for the next 3 years Source : MINISTRY OF ECONOMY AND FINANCE US$ MACROECONOMIC CONTEXT
Balance of Trade: Growth in Exports and Imports, with Trade Surplus Millions of US$ Source : CENTRAL RESERVE BANK OF PERU Trade Surplus since 2002 MACROECONOMIC CONTEXT
INR: 20 Years of Sustained Growth in International Net Reserves (83.2 times increase over 1990) Millions of US$ Source : CENTRAL RESERVE BANK OF PERU 44,105 530 MACROECONOMIC CONTEXT
Domestic Demand: 20 Years of Sustained Growth in Domestic Demand (2.6 times increase over 1990) Millions of US$ Source : CENTRAL RESERVE BANK OF PERU 217,833 82,264 MACROECONOMIC CONTEXT
Major Reduction in the Ratio of Public Debt / GDP (%) Public Debt / GDP Source : CENTRAL RESERVE BANK OF PERU MACROECONOMIC CONTEXT
Reduction in Inflation Rate Volatility Before Application of the MEI With Application of the MEI MACROECONOMIC CONTEXT
11 Years of Sustained Growth in Public Expenditures Source: MINISTRY OF ECONOMY AND FINANCE Millions of US$ GOVERNMENT SPENDING 31,160 7,381
Increase in Capital Expenses as a Percentage of the Total Non-Interest Expenses of the Central Government Current Expenditures Capital Expenditures Source : CENTRAL RESERVE BANK OF PERU GOVERNMENT SPENDING
FAVORABLE CLIMATE FOR INVESTMENT World Bank Doing Business 2011 Peru occupies the second place in the region in terms of national attractiveness for investments. Investment Grade Rating Source: Standard & Poor’s, Fitch Ratings and Moody’s Updated April, 2011 Ranking Country 1 Mexico 2 Peru 3 Colombia 4 Chile 5 Puerto Rico Country S&P Fitch Moody's Chile A. A. Aa3 Mexico BBB BBB Baa1 Brazil BBB- BBB Baa3 Peru BBB- BBB- Baa3 Colombia BBB- BB+ Ba1 Venezuela BB- B. B2 Argentina B. B. B3 Bolivia B. B. B1 Ecuador B. B. Caa3
FAVORABLE CLIMATE FOR INVESTMENT Source: Getulio Vargas Foundation in Brazil and the IFO Institute Germany. 2011 Source: World Economic Forum, The Financial Development Report 2009 Source: World Economic Forum, Benchmarking National Attractiveness for Private Investment in Infrastructure. 2007 Benchmarking National Attractiveness for Private Investment in Infrastructure. World Benchmarking Macroprudential Indicators of Financial System Soundness. Benchmarking Economic Climate Index (ECI) in Latin America World Economic Forum Getulio Vargas Foundation Ranking Country Points 1 Peru 275,720 2 Colombia 275,720 3 Chile 275,720 4 Uruguay 275,720 5 El salvador 275,720 6 Bolivia 275,720 7 Brazil 275,720 8 Dom. Republic 275,720 9 México 275,720 10 Guatemala 275,720 Ranking Country Points 1 Peru 275,720 6 China 275,720 8 Switzerland 275,720 9 France 275,720 10 Holland 275,720 11 Mexico 275,720 17 Argentina 275,720 35 Brazil 275,720 39 Chile 275,720 41 Colombia 275,720 Ranking Country ECI 1 Peru 7,381 1 Uruguay 7,381 2 Chile 7,381 3 Brazil 7,381 4 Paraguay 275,720 5 Colombia 275,720 7 Argentina 275,720 8 Mexico 275,720 9 Bolivia 275,720 10 Ecuador 275,720
Within a context of economic growth and increased government spending, while promoting greater investment in the country, a decisive factor are the transparency and accountability mechanisms that contribute to the adequate oversight and monitoring of government management results, in order to translate ithe mprovements made in macroeconomic variables into improved social conditions for its population .
STRENGTHENING AND MODERNIZATION OF THE TREASURY INSPECTOR'S OFFICE OF THE REPUBLIC
19 DEFINING A NEW VISION, MISSION AND VALUES
"To be recognized as an institution of excellence, that creates value and contributes to improving the quality of life of our citizens ."
"To promote the development of an effective and modern system of public resource management that benefits all Peruvians ."
Honesty, Justice and Sound Judgement
20 DEFINING INSTITUTIONAL PROCESSES Legal Management, Violations and Sanctions Management of Security H.R. Management Logistics Management Financial Management Academic Management Documentary Management and Administrative Support ICT Management MACRO PROCESSES OF THE MISSION SUPPORT MACRO PROCESSES Compliance Auditing Financial Auditing Management Auditing Citizen Participation and Transparency Rules and Regulations Management STRATEGIC MACRO PROCESSES Quality Management Environmental Management Strategic Planning and Management Control Research and Development Management Planning Sanctions Management A C T I O N Monitoring Needs and Wants of the Citizens and the Government Satisfaction and Trust of the Citizens and the Government Planning and Action Management Information Intelligence Management Internal Auditing
21 STRATEGY MAP 2011-2013 Vision Objectives Mission Objectives Enabling Steps A. Achieve a high level of trust and support from the citizens. B. Define, design and implement the New Plan for Monitoring and Fighting Against Corruption. C. Define the Clients, Products and Services. D. Reorganize, decentralize and integrate the Treasury Inspector's Office of the Republic. E. Establish a new Model for Human Talent Management. F. Design and implement Policies, Processes and Guidelines for the New Monitoring Plan. G. Obtain the Technology and Information Systems to support the new processes. H. Secure adequate Infrastructure and an efficient scheme for administrative support. Promote the development of an effective and modern system of public resource management that benefits all Peruvians. Be recognized as an institution of excellence, that creates value and contributes to improving the quality of life of our citizens.
22 MODERNIZATION STRATEGY 22 ENSURING VALUE GENERATION FOR SOCIETY Human Resources Management Project Managment Managment of Technologies Working Climate Process Re-Engineering New Image Modernization of the National System of Monitoring New Plan for Monitoring Organizational Structure Strategic Alliances Results-Based Management Deconcentration Decentralization Knowledge Management New Culture PERUVIAN GOVERNMENT CITIZENS
23 THE NEW MONITORING PLAN Integral Control Preventive Control Product / Client Focus Specialized Audits Public Policy Compliance Evaluation Performance Audits Intelligence and Information Analysis Administrative Sanctions PUBLIC RESOURCES DEVELOPMENT AND WELL-BEING CONTRIBUTION WITH GOVERNMENT REFORM
CRITICAL FACTORS IN THE FIGHT AGAINST CORRUPTION Internal Control Process and Project Management Results-Based Management Transparency Accountability of Officials Disseminating Values Public Agencies GOVERNMENT MANAGEMENT MODERN, EFFICIENT GOVERNMENT
In the 2001-2010 period, of the total number of recommendations on administrative operations responsibility, sanctions were enforced in only 25.2% of the cases.
In 2011, the Congress of the Republic granted sancitioning power to the Treasury Inspector's Office (CGR).
Treasury Inspector's Office of the Republic of Peru Miami, May 2011
THE NEW MANAGEMENT MODEL FOR THE TREASURY INSPECTOR'S OFFICE OF THE REPUBLIC
MASTER PLAN FOR THE TREASURY INSPECTOR'S OFFICE OF THE REPUBLIC 2011-2013 NEW MANAGEMENT MODEL (TO BE)