Surveys and polls from the 27th Annual International Consortium on Governmental Financial Management on PFM reform, donor support, and financial management systems in use in development countries. Includes: analysis of Exploring the Limits of Institutional Reform by Matt Andrews and other observations.
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State of public financial management reform in developing countries
1. Version 7 section
• brief discussion
State of Public Financial Management
Reform in Developing Countries
FreeBalance 2013
Survey
2. Version 7 section
• brief discussion
Version 7 section
• FreeBalance conducted surveys at the 27th Annual
International Consortium on Governmental Financial
Management (ICGFM) in Miami, the 3rd Week of May
• Majority of participants were from developing countries
• Some questions were asked at our booth using
SurveyMonkey while others used polling technologies
• Main purpose of the poll was to identify patterns and
improve survey questions
Overview
3. Version 7 section
• brief discussion
Version 7 section
• FreeBalance is a global provider of Government Resource
Planning (GRP) software and services based in Ottawa
• There is significant anecdotal and academic evidence
suggesting that some conventional thinking about Public
Financial Management (PFM) reform needs adjustment
• An important impetus for the survey was: The Limits of
Institutional Reform in Development by Professor Matt
Andrews
Context
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Version 7 section
44
1. Exploring the Limits of Institutional Reform Thesis
0%
25%
50%
75%
100%
Transparency Not Signaling
OGP Improves Governance
Best Practices Speeds Reform
Objectively PFM Best Practices
PFM Practice to Law Gap
Better Laws Primary Need
scores were rationalized as %
inconsistent views on notion
of PFM “best practices”
informal practices &
leadership seen as more
critical than legal reform,
gaps between legal reform
& practice observed
general view that
transparency initiatives
improve governance
5. Version 7 section
• brief discussion
55
23%
45%
32%
What is the gap between PFM laws and practice in your
country?
Wide, procedures operate
much differently than
stated by the law
Some gaps between laws
and practice
Gaps are limited
6. Version 7 section
• brief discussion
66
9%
63%
28%
What is the biggest issue inhibiting improved PFM in your
country?
Better laws
Better leadership
Focus on informal
processes
7. Version 7 section
• brief discussion
77
5%
49%
46%
Poll The Open Government Partnership (OGP)…
Is designed to make
governments look like they
have better governance
than they do
Is designed to improve
governance through
transparency
Improves transparency but
more is needed to improve
accountability
8. Version 7 section
• brief discussion
88
36%
64%
Are government transparency initiatives in your country
designed to
Promote your country by
signaling reform but
doesn't change much
Designed to improve
governance
9. Version 7 section
• brief discussion
99
24%
76%
Do you believe there are PFM best practices…
Best practices that should
be adopted by all
governments
Good practices where
some are better based on
the country context
10. Version 7 section
• brief discussion
1010
0%
25%
50%
75%
100%
Sustainable PFM Reform
PFM Practice to Law Gap
PFM MomentumRealistic PFM Bluprint
Understand PFM Priorities
2. Exploring the State of PFM Reform in Developing Countries
scores were rationalized as %
inconsistency between PFM
momentum, understanding
priorities, realistic blueprint
and sustainable reform
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• brief discussion
1111
26%
60%
14%
Does your country have a realistic PFM reform roadmap?
Yes
Somewhat
No
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1212
55%
42%
3%
Do you have a good sense of what your country should be
doing in PFM reform?
Yes
Somewhat
No
13. Version 7 section
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1313
7%
33%
51%
9%
Is PFM reform momentum in your country moving?
Too fast
Right speed
Too slow
There is no PFM
momentum
14. Version 7 section
• brief discussion
1414
59%24%
18%
Is PFM Reform momentum sustainable in your country?
Yes
No
No Opinion
15. Version 7 section
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1515
23%
45%
32%
What is the gap between PFM laws and practice in your
country?
Wide, procedures operate
much differently than
stated by the law
Some gaps between laws
and practice
Gaps are limited
16. Version 7 section
• brief discussion
1616
0%
25%
50%
75%
100%
Consistency of PFM Advice Across Donors
PFM Advice Consistent with Donor Reps
Consistency of PFM Advice Among Experts
Donor ICT Advice Satisfaction
Realistic Donor PFM Advice
Donors Best Technical Assistance
3. Exploring the Quality & Consistency of PFM Technical Assistance
satisfaction of PFM & ICT
advice from donors differs
depending on the question
asked
general lack of
consistency of donor
advice, but higher from
“experts”
scores were rationalized as %
17. Version 7 section
• brief discussion
1717
33%
33%
15%
18%
Does your country get consistent advice from different
donors?
Yes
Mostly the Same
Mostly Different
Completely Different
18. Version 7 section
• brief discussion
1818
25%
62%
13% 0%
Donor technical assistance for ICT technology
Is very effective
Is somewhat effective
Is somewhat ineffective
Is very ineffective
19. Version 7 section
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1919
36%
15%
32%
17%
Does PFM advice from donors change when donor
representatives change?
Yes
Mostly inconsistent advice
Mostly consistent advice
No
20. Version 7 section
• brief discussion
2020
66%
12%
22%
I get better advice on PFM reform…
At ICGFM and similar
conferences and
presentations
From technical assistance
sponsored by donors
From research and reading
21. Version 7 section
• brief discussion
2121
60%
27%
8%
5%
Does your country get consistent PFM advice from
experts?
Yes
Mostly the Same
Mostly Different
Completely Different
22. Version 7 section
• brief discussion
2222
41%
59%
Have you found that donors request PFM processes that
are
Better than in many
developed countries
Realistic given the country
contex
23. Version 7 section
• brief discussion
2323
4. Exploring the Satisfaction with FMIS Systems
0%
25%
50%
75%
100%
Would Select the Same FMIS
Self-Sustaining FMIS
Controlling FMIS Costs
FMIS Automation
Financially Sustainable FMIS
FMIS Helps Reform
scores were rationalized as %
inconsistent views on FMIS
sustainability, where costs
considered high but systems
are financially sustainable
yet only partly self-
sustaining
relatively low FMIS
satisfaction yet optimistic
about impact of FMIS
despite low levels of
automation
24. Version 7 section
• brief discussion
2424
33%
26%
16%
23%
If you had it to do over again, would you select the same
information systems in your country?
Yes
Mostly the Same
Mostly Different
Completely Different
25. Version 7 section
• brief discussion
2525
24%
51%
31%
Our government FMIS systems…
Are fully managed and
supported by government
staff
Are managed and
supported by government
staff for normal situations
Require a significant
number of outside
consultants to manage
26. Version 7 section
• brief discussion
2626
51%
13%
29%
7%
The costs to manage our government FMIS system are…
Far more than they should
be
Are a bit more than they
should be
Are about as expensive as
they should be
Are less than expected
27. Version 7 section
• brief discussion
2727
11%
57%
33%
The PFM processes in my country …
Are mostly automated
Somewhat automated
Mostly manual
28. Version 7 section
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2828
58%
30%
12%
Is the FMIS system in use in your country financially
sustainable?
Yes
No
No Opinion
29. Version 7 section
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2929
82%
5%
13%
In your experience do FMIS systems
help accelerate PFM reform
have no impact on PFM reform
momentum after implementatio
slow PFM reform
30. Version 7 section
• brief discussion
Version 7 section• Very little consistency in views of whether PFM reform
sequencing is or should be a science
• General agreement that direct budgetary support reduces
corruption
• Diagnostic tools like PEFA help set some PFM reform
actions
• Sense that PFM reform could be accelerated
3030
5. Exploring Other PFM Elements
31. Version 7 section
• brief discussion
3131
88%
12%
Will increasing Open Budgets Index
Improve the perception of
governance in your
country
Have no effect on
perception
32. Version 7 section
• brief discussion
3232
36%
49%
2%
13%
Is PEFA sufficient to help you map out PFM reform?
Yes
Helps somewhat
Doesn't Help
What is PEFA
33. Version 7 section
• brief discussion
3333
39%
51%
10%
Do you believe that your country can leapfrog other
countries in PFM reform?
Yes
In some areas
No
34. Version 7 section
• brief discussion
3434
52%
29%
19%
Direct budgetary support to your country will…
Reduce corruption,
improve capacity and
results
Have no significant
governance impact
Increase corruption and
make development
outcomes poorer
35. Version 7 section
• brief discussion
3535
51%49%
IS PFM reform sequencing
a science
an art form
36. Version 7 section
• brief discussion
3636
18%
34%
12%
12%
24%
How accurate is PFM perception of the PFM quality in
your country? Very accurate
Somewhat accurate
Somewhat inaccurate
Quite inaccurate
55%
45%
Should PFM reform sequencing be…
A science
An art form