Public Financial Management Good Practice GRP Reform Sequencing
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7/30/2019 Public Financial Management Good Practice GRP Reform Sequencing
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PFM Domain GRPSEQUENCING
Good Practice PFMGOOD PRACTICES
Applicable DEVELOPING COUNTRY GOVERNMENTS
FreeBalance Public Financial Management
Good Practices
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why is sequencing
PFM reform
considered a bestpractice?
Research has shown a statistically relevant link between good governance
indicators and development. For example, countries whose governments
achieve higher good governance indicators tend to have higher GDP per capita
and longer average life expectancy.
The quality of public financial management (PFM) systems is a key determinant
of government effectiveness. The capacity to direct, manage and track public
spending allows governments to pursue their national objectives and account
for the use of public resources and donor funds.
There is some consensus thatbasics matter more than best practicein PFM.
Reformsshould be sequencedbasedon the country contextbecause of the
complexity ofimplementing too much change at once. There is avirtue to
sequencing. Yet, there remains some concern of theplatform approachfor
sequencing, the notion of leapfroggingand anover-emphasis on technicalPFM.
Although often thought asconsultant-speak, the approach of small wins
rather than the big bang approach is considered a good practice in the PFM
community.
PFM diagnostic tools likePublic Expenditure and Financial Accountability(PEFA)
provide good insight but are not prescriptive and donot answer the much more
difficult question of how to sequence PFM reforms. These assessments tend to
betechnology neutral.
It often appears that country context, sequencing methods and PFM reform
momentum is more of art form than a science.
The platform approach to PFM sequencing is designed to suit unique country conditions.
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1148386http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1148386http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1148386http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1148386http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1148386http://www.odi.org.uk/resources/download/3333.pdfhttp://www.odi.org.uk/resources/download/3333.pdfhttp://www.odi.org.uk/resources/download/3333.pdfhttp://www.odi.org.uk/resources/download/3333.pdfhttp://www.odi.org.uk/resources/download/3333.pdfhttp://www.odi.org.uk/resources/download/3333.pdfhttp://www.odi.org.uk/resources/download/3333.pdfhttp://blog-pfm.imf.org/pfmblog/2012/07/basics-first-is-best-practice.htmlhttp://blog-pfm.imf.org/pfmblog/2012/07/basics-first-is-best-practice.htmlhttp://blog-pfm.imf.org/pfmblog/2012/07/basics-first-is-best-practice.htmlhttp://www1.imp.unisg.ch/org/idt/ipmr.nsf/ac4c1079924cf935c1256c76004ba1a6/f8b558161c4e45a5c12577050045db86/$FILE/Bietenhader%20&%20Bergmann_IPMR_Volume%2011_Issue%201.pdfhttp://www1.imp.unisg.ch/org/idt/ipmr.nsf/ac4c1079924cf935c1256c76004ba1a6/f8b558161c4e45a5c12577050045db86/$FILE/Bietenhader%20&%20Bergmann_IPMR_Volume%2011_Issue%201.pdfhttp://www1.imp.unisg.ch/org/idt/ipmr.nsf/ac4c1079924cf935c1256c76004ba1a6/f8b558161c4e45a5c12577050045db86/$FILE/Bietenhader%20&%20Bergmann_IPMR_Volume%2011_Issue%201.pdfhttp://www.odi.org.uk/resources/docs/5904.pdfhttp://www.odi.org.uk/resources/docs/5904.pdfhttp://www.odi.org.uk/resources/docs/5904.pdfhttp://www.freebalance.com/blog/?p=156http://www.freebalance.com/blog/?p=156http://www.freebalance.com/blog/?p=156http://www.freebalance.com/blog/?p=156http://www.freebalance.com/blog/?p=156http://www.freebalance.com/blog/?p=156http://www.freebalance.com/blog/?p=156http://blog-pfm.imf.org/pfmblog/2009/06/the-challenge-of-reforming-budgetary-institutions-in-developing-countries.htmlhttp://blog-pfm.imf.org/pfmblog/2009/06/the-challenge-of-reforming-budgetary-institutions-in-developing-countries.htmlhttp://blog-pfm.imf.org/pfmblog/2009/06/the-challenge-of-reforming-budgetary-institutions-in-developing-countries.htmlhttp://blog-pfm.imf.org/pfmblog/2012/08/the-sequencing-debate-is-over-or-is-it.htmlhttp://blog-pfm.imf.org/pfmblog/2012/08/the-sequencing-debate-is-over-or-is-it.htmlhttp://www.beyondbudgets.org/blog/2012/7/19/why-most-publications-about-pfm-sequencing-are-missing-the-p.htmlhttp://www.beyondbudgets.org/blog/2012/7/19/why-most-publications-about-pfm-sequencing-are-missing-the-p.htmlhttp://www.beyondbudgets.org/blog/2012/7/19/why-most-publications-about-pfm-sequencing-are-missing-the-p.htmlhttp://www.beyondbudgets.org/blog/2012/7/19/why-most-publications-about-pfm-sequencing-are-missing-the-p.htmlhttp://www.freebalance.com/blog/?p=156http://www.freebalance.com/blog/?p=156http://www.freebalance.com/blog/?p=156http://www.pefa.org/http://www.pefa.org/http://www.pefa.org/http://blog-pfm.imf.org/pfmblog/2009/06/the-challenge-of-reforming-budgetary-institutions-in-developing-countries.htmlhttp://blog-pfm.imf.org/pfmblog/2009/06/the-challenge-of-reforming-budgetary-institutions-in-developing-countries.htmlhttp://blog-pfm.imf.org/pfmblog/2009/06/the-challenge-of-reforming-budgetary-institutions-in-developing-countries.htmlhttp://blog-pfm.imf.org/pfmblog/2009/06/the-challenge-of-reforming-budgetary-institutions-in-developing-countries.htmlhttp://www.freebalance.com/whitepapers/FreeBalance%20WP-Towards%20Budget%202.0.pdfhttp://www.freebalance.com/whitepapers/FreeBalance%20WP-Towards%20Budget%202.0.pdfhttp://www.freebalance.com/whitepapers/FreeBalance%20WP-Towards%20Budget%202.0.pdfhttp://www.freebalance.com/whitepapers/FreeBalance%20WP-Towards%20Budget%202.0.pdfhttp://blog-pfm.imf.org/pfmblog/2009/06/the-challenge-of-reforming-budgetary-institutions-in-developing-countries.htmlhttp://blog-pfm.imf.org/pfmblog/2009/06/the-challenge-of-reforming-budgetary-institutions-in-developing-countries.htmlhttp://www.pefa.org/http://www.freebalance.com/blog/?p=156http://www.beyondbudgets.org/blog/2012/7/19/why-most-publications-about-pfm-sequencing-are-missing-the-p.htmlhttp://www.beyondbudgets.org/blog/2012/7/19/why-most-publications-about-pfm-sequencing-are-missing-the-p.htmlhttp://blog-pfm.imf.org/pfmblog/2012/08/the-sequencing-debate-is-over-or-is-it.htmlhttp://blog-pfm.imf.org/pfmblog/2009/06/the-challenge-of-reforming-budgetary-institutions-in-developing-countries.htmlhttp://www.freebalance.com/blog/?p=156http://www.freebalance.com/blog/?p=156http://www.freebalance.com/blog/?p=156http://www.odi.org.uk/resources/docs/5904.pdfhttp://www1.imp.unisg.ch/org/idt/ipmr.nsf/ac4c1079924cf935c1256c76004ba1a6/f8b558161c4e45a5c12577050045db86/$FILE/Bietenhader%20&%20Bergmann_IPMR_Volume%2011_Issue%201.pdfhttp://blog-pfm.imf.org/pfmblog/2012/07/basics-first-is-best-practice.htmlhttp://www.odi.org.uk/resources/download/3333.pdfhttp://www.odi.org.uk/resources/download/3333.pdfhttp://www.odi.org.uk/resources/download/3333.pdfhttp://www.odi.org.uk/resources/download/3333.pdfhttp://papers.ssrn.com/sol3/papers.cfm?abstract_id=1148386http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1148386 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what is the
implication ofsequencing PFM
reform to GRP?
Financial Management Information Systems (FMIS), or Government Resource
Planning (GRP) is recognized as a technology tool to assist in PFM reform. Theestablishment of an FMIS has consequently become an important benchmark
for the countrys budget reform agenda, often regarded as a precondition for
achieving effective management of the budgetary resources. Although it is not
a panacea, the benefits of an FMIS could be argued to be profound.
GRP and e-government technology enables PFM, wherethe real benefit of e-
government lies not in the use of technology per se, but in its application to
processes of transformation.
The challenge for GRP technology is to adapt to meet country conditions such
as human capacity, while enabling future modernization and reform because
many reformshave taken up to two centuries to evolve from where manydeveloping countries find themselves today, to where the developed countries
are today.
Countries with higher HDI tend to have higher PEFA scores. PFM reform progress results inimproved
government effectiveness.Capacity building is considered a pre-requisite for PFM reform.
http://www.unescobkk.org/fileadmin/user_upload/epr/MTEF/04Financial_Planning/02Modernization_of_public_sector_management/040204004Diamond,%20J.%20and%20Khemani,%20P.%20%282005%29.pdfhttp://www.unescobkk.org/fileadmin/user_upload/epr/MTEF/04Financial_Planning/02Modernization_of_public_sector_management/040204004Diamond,%20J.%20and%20Khemani,%20P.%20%282005%29.pdfhttp://www.unescobkk.org/fileadmin/user_upload/epr/MTEF/04Financial_Planning/02Modernization_of_public_sector_management/040204004Diamond,%20J.%20and%20Khemani,%20P.%20%282005%29.pdfhttp://www.unescobkk.org/fileadmin/user_upload/epr/MTEF/04Financial_Planning/02Modernization_of_public_sector_management/040204004Diamond,%20J.%20and%20Khemani,%20P.%20%282005%29.pdfhttp://www.unescobkk.org/fileadmin/user_upload/epr/MTEF/04Financial_Planning/02Modernization_of_public_sector_management/040204004Diamond,%20J.%20and%20Khemani,%20P.%20%282005%29.pdfhttp://www.unescobkk.org/fileadmin/user_upload/epr/MTEF/04Financial_Planning/02Modernization_of_public_sector_management/040204004Diamond,%20J.%20and%20Khemani,%20P.%20%282005%29.pdfhttp://www.unescobkk.org/fileadmin/user_upload/epr/MTEF/04Financial_Planning/02Modernization_of_public_sector_management/040204004Diamond,%20J.%20and%20Khemani,%20P.%20%282005%29.pdfhttp://unpan1.un.org/intradoc/groups/public/documents/un/unpan028607.pdfhttp://unpan1.un.org/intradoc/groups/public/documents/un/unpan028607.pdfhttp://unpan1.un.org/intradoc/groups/public/documents/un/unpan028607.pdfhttp://unpan1.un.org/intradoc/groups/public/documents/un/unpan028607.pdfhttp://unpan1.un.org/intradoc/groups/public/documents/un/unpan028607.pdfhttp://blog-pfm.imf.org/pfmblog/2009/06/the-challenge-of-reforming-budgetary-institutions-in-developing-countries.htmlhttp://blog-pfm.imf.org/pfmblog/2009/06/the-challenge-of-reforming-budgetary-institutions-in-developing-countries.htmlhttp://blog-pfm.imf.org/pfmblog/2009/06/the-challenge-of-reforming-budgetary-institutions-in-developing-countries.htmlhttp://blog-pfm.imf.org/pfmblog/2009/06/the-challenge-of-reforming-budgetary-institutions-in-developing-countries.htmlhttp://blog-pfm.imf.org/pfmblog/2009/06/the-challenge-of-reforming-budgetary-institutions-in-developing-countries.htmlhttp://www.freebalance.com/blog/?p=3063http://www.freebalance.com/blog/?p=3063http://www.freebalance.com/blog/?p=3063http://www.freebalance.com/blog/?p=3063http://www.freebalance.com/blog/?p=2827http://www.freebalance.com/blog/?p=2827http://www.freebalance.com/blog/?p=2827http://www.freebalance.com/blog/?p=2827http://www.freebalance.com/blog/?p=3063http://www.freebalance.com/blog/?p=3063http://blog-pfm.imf.org/pfmblog/2009/06/the-challenge-of-reforming-budgetary-institutions-in-developing-countries.htmlhttp://blog-pfm.imf.org/pfmblog/2009/06/the-challenge-of-reforming-budgetary-institutions-in-developing-countries.htmlhttp://blog-pfm.imf.org/pfmblog/2009/06/the-challenge-of-reforming-budgetary-institutions-in-developing-countries.htmlhttp://unpan1.un.org/intradoc/groups/public/documents/un/unpan028607.pdfhttp://unpan1.un.org/intradoc/groups/public/documents/un/unpan028607.pdfhttp://unpan1.un.org/intradoc/groups/public/documents/un/unpan028607.pdfhttp://www.unescobkk.org/fileadmin/user_upload/epr/MTEF/04Financial_Planning/02Modernization_of_public_sector_management/040204004Diamond,%20J.%20and%20Khemani,%20P.%20%282005%29.pdfhttp://www.unescobkk.org/fileadmin/user_upload/epr/MTEF/04Financial_Planning/02Modernization_of_public_sector_management/040204004Diamond,%20J.%20and%20Khemani,%20P.%20%282005%29.pdfhttp://www.unescobkk.org/fileadmin/user_upload/epr/MTEF/04Financial_Planning/02Modernization_of_public_sector_management/040204004Diamond,%20J.%20and%20Khemani,%20P.%20%282005%29.pdfhttp://www.unescobkk.org/fileadmin/user_upload/epr/MTEF/04Financial_Planning/02Modernization_of_public_sector_management/040204004Diamond,%20J.%20and%20Khemani,%20P.%20%282005%29.pdfhttp://www.unescobkk.org/fileadmin/user_upload/epr/MTEF/04Financial_Planning/02Modernization_of_public_sector_management/040204004Diamond,%20J.%20and%20Khemani,%20P.%20%282005%29.pdf -
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can sequencing
priorities be less
art and morescience?
The information necessary to understand the country context is more readily
available thanks to open data and analysis from International Financial
Institutions. And, there has been some work toidentify high-level PFM reformsequencingsuch as the need to implement core functions first such as adopting
theTreasury Single Accountand focus onbudget execution prior to budget
preparation.
Third party ratings fromRevenue Watch,Open Budget Partnership,
Transparency International,Freedom Houseand other organizations provide
insight into the country context. It has become easier to identify priorities for
reform such as revenue transparency and support for theExtractive Industries
Transparency Initiative(EITI) inresource-dependent countriesor the need for aid
transparency and support for theInternational Aid Transparency Initiative(IATI)
in countries with a high percentage ofOfficial Development Assistance(ODA)
relative to the government budget.
FreeBalance government customers that have undergone PEFA assessment enjoy better scores than
countries with higher HDI who do not use FreeBalance software. FreeBalance customers have been
recognized forachievements of substantial reform.
http://www.freebalance.com/blog/?p=1101http://www.freebalance.com/blog/?p=1101http://www.freebalance.com/blog/?p=1101http://www.freebalance.com/blog/?p=1101http://blog-pfm.imf.org/pfmblog/2011/12/treasury-single-account-is-an-essential-tool-for-government-cash-management-a-new-fad-technical-note.htmlhttp://blog-pfm.imf.org/pfmblog/2011/12/treasury-single-account-is-an-essential-tool-for-government-cash-management-a-new-fad-technical-note.htmlhttp://blog-pfm.imf.org/pfmblog/2011/12/treasury-single-account-is-an-essential-tool-for-government-cash-management-a-new-fad-technical-note.htmlhttp://www.odi.org.uk/events/docs/4518.pdfhttp://www.odi.org.uk/events/docs/4518.pdfhttp://www.odi.org.uk/events/docs/4518.pdfhttp://www.odi.org.uk/events/docs/4518.pdfhttp://www.revenuewatch.org/http://www.revenuewatch.org/http://www.revenuewatch.org/http://internationalbudget.org/what-we-do/open-budget-survey/http://internationalbudget.org/what-we-do/open-budget-survey/http://internationalbudget.org/what-we-do/open-budget-survey/http://www.transparency.org/http://www.transparency.org/http://www.freedomhouse.org/http://www.freedomhouse.org/http://www.freedomhouse.org/http://eiti.org/http://eiti.org/http://eiti.org/http://eiti.org/http://en.wikipedia.org/wiki/Resource_cursehttp://en.wikipedia.org/wiki/Resource_cursehttp://en.wikipedia.org/wiki/Resource_cursehttp://www.aidtransparency.net/http://www.aidtransparency.net/http://www.aidtransparency.net/http://en.wikipedia.org/wiki/Official_development_assistancehttp://en.wikipedia.org/wiki/Official_development_assistancehttp://en.wikipedia.org/wiki/Official_development_assistancehttp://www.freebalance.com/blog/?p=3063http://www.freebalance.com/blog/?p=3063http://www.freebalance.com/blog/?p=3063http://www.freebalance.com/blog/?p=3063http://en.wikipedia.org/wiki/Official_development_assistancehttp://www.aidtransparency.net/http://en.wikipedia.org/wiki/Resource_cursehttp://eiti.org/http://eiti.org/http://www.freedomhouse.org/http://www.transparency.org/http://internationalbudget.org/what-we-do/open-budget-survey/http://www.revenuewatch.org/http://www.odi.org.uk/events/docs/4518.pdfhttp://www.odi.org.uk/events/docs/4518.pdfhttp://blog-pfm.imf.org/pfmblog/2011/12/treasury-single-account-is-an-essential-tool-for-government-cash-management-a-new-fad-technical-note.htmlhttp://www.freebalance.com/blog/?p=1101http://www.freebalance.com/blog/?p=1101 -
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Increasing mobile global penetration is changing the accountability gap dynamic in developing countries.
does technology
enable PFM reform
and modernization?
Technology is seen as an enabler fortransformation in government. Technology
shoulduse a gradual and flexible process.
There have been numerous technology failures indeveloped and developingcountries where implementations failed to achieve results, were delivered late,
were provided over-budget or were unable to adapt to reform.
Many implementations of software for GRP needshave not been financially
sustainable by governments.
Enterprise Resource Planning (ERP) software that was designed for many private
industries is costly to adapt to reform.Large-scale public sector ERP
implementations add additional time during the analysis and design phase to
focus on the gap between the commercial process and the required process
ERP and custom-developed GRP solutions can make reform difficult. ERP and
custom-developed softwarerequires significant softwarecomplex codecustomization (BPM scripts, call-outs & software development) to meet
government requirements thatreduces time to results.The ratio of services to
software cost in the public sector is estimated to be three time that in the
private sector or up to 15 times the cost of software.
http://www.amazon.com/Technologies-Government-Transformation-Technology-Solutions/dp/0891252797http://www.amazon.com/Technologies-Government-Transformation-Technology-Solutions/dp/0891252797http://www.amazon.com/Technologies-Government-Transformation-Technology-Solutions/dp/0891252797http://www.freebalance.com/blog/?p=156http://www.freebalance.com/blog/?p=156http://www.freebalance.com/blog/?p=156http://www.freebalance.com/blog/?p=3118http://www.freebalance.com/blog/?p=3118http://www.freebalance.com/blog/?p=3118http://www.freebalance.com/blog/?p=3118http://www.freebalance.com/blog/?p=3118http://www.freebalance.com/blog/?p=3218http://www.freebalance.com/blog/?p=3218http://www.freebalance.com/blog/?p=3218http://www.freebalance.com/blog/?p=3218http://www.computer.org/comp/proceedings/hicss/2004/2056/08/205680227b.pdf..http://www.computer.org/comp/proceedings/hicss/2004/2056/08/205680227b.pdf..http://www.computer.org/comp/proceedings/hicss/2004/2056/08/205680227b.pdf..http://www.computer.org/comp/proceedings/hicss/2004/2056/08/205680227b.pdf..http://www.computer.org/comp/proceedings/hicss/2004/2056/08/205680227b.pdf..http://www.ppt2txt.com/r/2f325664/http://www.ppt2txt.com/r/2f325664/http://www.ppt2txt.com/r/2f325664/http://www.ppt2txt.com/r/2f325664/http://www.ppt2txt.com/r/2f325664/https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CFcQFjAA&url=https%3A%2F%2Facc.dau.mil%2Fadl%2Fen-US%2F164288%2Ffile%2F29991%2Fesi_overview.ppt&ei=mkUZUMOJNoGbiAL724CgDA&usg=AFQjCNF15XHnYczy1QXroeb4mtS0zzac6ghttps://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CFcQFjAA&url=https%3A%2F%2Facc.dau.mil%2Fadl%2Fen-US%2F164288%2Ffile%2F29991%2Fesi_overview.ppt&ei=mkUZUMOJNoGbiAL724CgDA&usg=AFQjCNF15XHnYczy1QXroeb4mtS0zzac6ghttps://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CFcQFjAA&url=https%3A%2F%2Facc.dau.mil%2Fadl%2Fen-US%2F164288%2Ffile%2F29991%2Fesi_overview.ppt&ei=mkUZUMOJNoGbiAL724CgDA&usg=AFQjCNF15XHnYczy1QXroeb4mtS0zzac6ghttps://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CFcQFjAA&url=https%3A%2F%2Facc.dau.mil%2Fadl%2Fen-US%2F164288%2Ffile%2F29991%2Fesi_overview.ppt&ei=mkUZUMOJNoGbiAL724CgDA&usg=AFQjCNF15XHnYczy1QXroeb4mtS0zzac6ghttps://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CFcQFjAA&url=https%3A%2F%2Facc.dau.mil%2Fadl%2Fen-US%2F164288%2Ffile%2F29991%2Fesi_overview.ppt&ei=mkUZUMOJNoGbiAL724CgDA&usg=AFQjCNF15XHnYczy1QXroeb4mtS0zzac6ghttps://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CFcQFjAA&url=https%3A%2F%2Facc.dau.mil%2Fadl%2Fen-US%2F164288%2Ffile%2F29991%2Fesi_overview.ppt&ei=mkUZUMOJNoGbiAL724CgDA&usg=AFQjCNF15XHnYczy1QXroeb4mtS0zzac6ghttps://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CFcQFjAA&url=https%3A%2F%2Facc.dau.mil%2Fadl%2Fen-US%2F164288%2Ffile%2F29991%2Fesi_overview.ppt&ei=mkUZUMOJNoGbiAL724CgDA&usg=AFQjCNF15XHnYczy1QXroeb4mtS0zzac6ghttp://www.ppt2txt.com/r/2f325664/http://www.ppt2txt.com/r/2f325664/http://www.computer.org/comp/proceedings/hicss/2004/2056/08/205680227b.pdf..http://www.computer.org/comp/proceedings/hicss/2004/2056/08/205680227b.pdf..http://www.computer.org/comp/proceedings/hicss/2004/2056/08/205680227b.pdf..http://www.freebalance.com/blog/?p=3218http://www.freebalance.com/blog/?p=3218http://www.freebalance.com/blog/?p=3118http://www.freebalance.com/blog/?p=3118http://www.freebalance.com/blog/?p=3118http://www.freebalance.com/blog/?p=156http://www.amazon.com/Technologies-Government-Transformation-Technology-Solutions/dp/0891252797 -
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is technology
leapfrog possible?
GRP technologyleapfrogispossible in many country contextsparticularly in the
ability to publish open data.
Developing countries often do not have entrenched legacy technologies and canbypass stages in development. Although more developed countries took
centuries to reform, developing countries can benefit from proven good
practices. This gives developing countries the latecomer advantage.
Developing countries are leveraging the convergence of Internet and mobile
technology to overcome the digital divide. The technology is adapted to the
local context typically at lower costs than legacy technology.
Nevertheless, apure technological solution does create reform because
technology can maintain or reinforce an accountability gap.
what are the
incentives forreform?
Governance reform ishighly political and disrupts the traditional power
structures in countries. This dynamic reduces reform momentum. And, there areemerging lessons learnedabout reform incentives.
Improved access to technology has createdorganicprotest phenomenon like the
Arab Springthat assisted in the overthrow of governments. Social media and
mobile technology haveenabled rapid citizen organization. Governments can
crowdsource or be crowdsourced.
Globalization has created an open and competitive environment among
countries. Businesses are more prepared to invest in countries with effective
governance, which manifests itself in legal predictability, low corruption, and
ease of doing business.
International Finance Institutions usegovernance scorecardsfor funding
decisions. This strategy can better align leadership with citizen incentives.
The relative success in global poverty reductiondemonstrates that many
government leaders are concerned about good governance and improving
development results.
what are the
incentives for
implementing GRP?
GRP has agreat potential for increasing predictability, participation,
transparency, and government accountability.
GRP technology can improvebusiness and citizen confidencethrough
transparency and government effectiveness.
GRP technology increases government efficiency andrevenue. This can result inreducing deficits and providing governments with morefiscal space including
reduced cost of borrowing.
GRP technology aligned with e-government initiatives enablescitizen efficacyto
improvecountry stability.
http://en.wikipedia.org/wiki/Leapfrogginghttp://en.wikipedia.org/wiki/Leapfrogginghttp://en.wikipedia.org/wiki/Leapfrogginghttp://www.slideshare.net/FreeBalance/open-systems-enabling-transparency-technology-leapfroghttp://www.slideshare.net/FreeBalance/open-systems-enabling-transparency-technology-leapfroghttp://www.slideshare.net/FreeBalance/open-systems-enabling-transparency-technology-leapfroghttp://www.freebalance.com/blog/?p=1559http://www.freebalance.com/blog/?p=1559http://www.cutter.com/offers/egovt.htmlhttp://www.cutter.com/offers/egovt.htmlhttp://www.cutter.com/offers/egovt.htmlhttp://en.wikipedia.org/wiki/Digital_dividehttp://en.wikipedia.org/wiki/Digital_dividehttp://wiki.dbast.com/images/4/49/Does_E-Government_Promote_Accountability.pdfhttp://wiki.dbast.com/images/4/49/Does_E-Government_Promote_Accountability.pdfhttp://wiki.dbast.com/images/4/49/Does_E-Government_Promote_Accountability.pdfhttp://wiki.dbast.com/images/4/49/Does_E-Government_Promote_Accountability.pdfhttp://openbudgetsblog.org/2012/08/06/how-to-build-budget-transparency-accountability-and-participation-in-fragile-states/http://openbudgetsblog.org/2012/08/06/how-to-build-budget-transparency-accountability-and-participation-in-fragile-states/http://openbudgetsblog.org/2012/08/06/how-to-build-budget-transparency-accountability-and-participation-in-fragile-states/http://openbudgetsblog.org/2012/08/06/how-to-build-budget-transparency-accountability-and-participation-in-fragile-states/http://www1.worldbank.org/publicsector/pe/StrengthenedApproach/1Consultatitve.pdfhttp://www1.worldbank.org/publicsector/pe/StrengthenedApproach/1Consultatitve.pdfhttp://www1.worldbank.org/publicsector/pe/StrengthenedApproach/1Consultatitve.pdfhttp://news.nationalpost.com/2012/08/18/obama-romney-twitter/http://news.nationalpost.com/2012/08/18/obama-romney-twitter/http://news.nationalpost.com/2012/08/18/obama-romney-twitter/http://en.wikipedia.org/wiki/Arab_Springhttp://en.wikipedia.org/wiki/Arab_Springhttp://www.freebalance.com/blog/?tag=arab-springhttp://www.freebalance.com/blog/?tag=arab-springhttp://www.freebalance.com/blog/?tag=arab-springhttp://www.freebalance.com/blog/?p=2972http://www.freebalance.com/blog/?p=2972http://www.freebalance.com/blog/?p=2972http://www.mcc.gov/pages/selectionhttp://www.mcc.gov/pages/selectionhttp://www.mcc.gov/pages/selectionhttp://www.freebalance.com/blog/?p=2798http://www.freebalance.com/blog/?p=2798http://www.freebalance.com/blog/?p=2798http://siteresources.worldbank.org/PUBLICSECTORANDGOVERNANCE/Resources/285741-1303321730709/WBStudy_FMIS.pdfhttp://siteresources.worldbank.org/PUBLICSECTORANDGOVERNANCE/Resources/285741-1303321730709/WBStudy_FMIS.pdfhttp://siteresources.worldbank.org/PUBLICSECTORANDGOVERNANCE/Resources/285741-1303321730709/WBStudy_FMIS.pdfhttp://siteresources.worldbank.org/PUBLICSECTORANDGOVERNANCE/Resources/285741-1303321730709/WBStudy_FMIS.pdfhttp://www.freebalance.com/blog/?p=104http://www.freebalance.com/blog/?p=104http://www.freebalance.com/blog/?p=104http://www.freebalance.com/blog/?p=104http://www.freebalance.com/blog/?p=104http://www.freebalance.com/blog/?p=104http://www.freebalance.com/blog/?p=2798http://www.freebalance.com/blog/?p=2798http://www.freebalance.com/blog/?p=2798http://www.freebalance.com/blog/?p=2798http://www.freebalance.com/blog/?p=2908http://www.freebalance.com/blog/?p=2908http://www.freebalance.com/blog/?p=2908http://www.freebalance.com/blog/?p=104http://www.freebalance.com/blog/?p=104http://www.freebalance.com/blog/?p=104http://www.freebalance.com/blog/?p=104http://www.freebalance.com/blog/?p=2908http://www.freebalance.com/blog/?p=2798http://www.freebalance.com/blog/?p=2798http://www.freebalance.com/blog/?p=104http://www.freebalance.com/blog/?p=104http://siteresources.worldbank.org/PUBLICSECTORANDGOVERNANCE/Resources/285741-1303321730709/WBStudy_FMIS.pdfhttp://siteresources.worldbank.org/PUBLICSECTORANDGOVERNANCE/Resources/285741-1303321730709/WBStudy_FMIS.pdfhttp://www.freebalance.com/blog/?p=2798http://www.mcc.gov/pages/selectionhttp://www.freebalance.com/blog/?p=2972http://www.freebalance.com/blog/?tag=arab-springhttp://en.wikipedia.org/wiki/Arab_Springhttp://news.nationalpost.com/2012/08/18/obama-romney-twitter/http://www1.worldbank.org/publicsector/pe/StrengthenedApproach/1Consultatitve.pdfhttp://openbudgetsblog.org/2012/08/06/how-to-build-budget-transparency-accountability-and-participation-in-fragile-states/http://openbudgetsblog.org/2012/08/06/how-to-build-budget-transparency-accountability-and-participation-in-fragile-states/http://wiki.dbast.com/images/4/49/Does_E-Government_Promote_Accountability.pdfhttp://wiki.dbast.com/images/4/49/Does_E-Government_Promote_Accountability.pdfhttp://en.wikipedia.org/wiki/Digital_dividehttp://www.cutter.com/offers/egovt.htmlhttp://www.freebalance.com/blog/?p=1559http://www.slideshare.net/FreeBalance/open-systems-enabling-transparency-technology-leapfroghttp://en.wikipedia.org/wiki/Leapfrogging -
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how does the
technology supply
chain impactreform?
Thetraditional approachof GRP implementations through third-party systems
integration firms with little or no involvement of the software manufacturer
increases implementation risk in developing countries. Some systems integration firms find incentives to increase costs and reduce
financial sustainability. Some software manufacturers form part of devils
triangle
Standardproject management techniques have not overcome difficulties in
implementing softwarein developing or developed countries. GRP
implementations require more concentration oncapacity, communications and
change management.
GRP solutions that rely on code customization add complexity and cost. This
complexity reduces momentum to the pointwhere technology inhibits rather
than enables government transformation.
Software manufacturers who hope to achieve success in GRP must have
appropriate governance mechanismswhereby governments drive product
enhancements.
Holistic methods can provide reform roadmapsbased on thecountry context.
Lessons learned can be used to improve GRP products.
http://www.freebalance.com/news/presentations/2011-03-15achievinggovernmentsuccess.pdfhttp://www.freebalance.com/news/presentations/2011-03-15achievinggovernmentsuccess.pdfhttp://www.freebalance.com/news/presentations/2011-03-15achievinggovernmentsuccess.pdfhttp://www.zdnet.com/blog/projectfailures/exploring-the-devils-triangle/5676http://www.zdnet.com/blog/projectfailures/exploring-the-devils-triangle/5676http://www.zdnet.com/blog/projectfailures/exploring-the-devils-triangle/5676http://www.zdnet.com/blog/projectfailures/exploring-the-devils-triangle/5676http://www.computerworld.com/s/article/9229070/Survey_finds_ERP_software_project_overruns_39_distressingly_common_39_http://www.computerworld.com/s/article/9229070/Survey_finds_ERP_software_project_overruns_39_distressingly_common_39_http://www.computerworld.com/s/article/9229070/Survey_finds_ERP_software_project_overruns_39_distressingly_common_39_http://www.computerworld.com/s/article/9229070/Survey_finds_ERP_software_project_overruns_39_distressingly_common_39_http://www.freebalance.com/news/presentations/2011-03-15achievinggovernmentsuccess.pdfhttp://www.freebalance.com/news/presentations/2011-03-15achievinggovernmentsuccess.pdfhttp://www.freebalance.com/news/presentations/2011-03-15achievinggovernmentsuccess.pdfhttp://www.freebalance.com/news/presentations/2011-03-15achievinggovernmentsuccess.pdfhttp://www.computerworld.com/s/article/9229070/Survey_finds_ERP_software_project_overruns_39_distressingly_common_39_http://www.computerworld.com/s/article/9229070/Survey_finds_ERP_software_project_overruns_39_distressingly_common_39_http://www.computerworld.com/s/article/9229070/Survey_finds_ERP_software_project_overruns_39_distressingly_common_39_http://www.computerworld.com/s/article/9229070/Survey_finds_ERP_software_project_overruns_39_distressingly_common_39_http://www.freebalance.com/news/presentations/2011-03-15achievinggovernmentsuccess.pdfhttp://www.freebalance.com/news/presentations/2011-03-15achievinggovernmentsuccess.pdfhttp://www.freebalance.com/blog/?p=2399http://www.freebalance.com/blog/?p=2399http://www.freebalance.com/blog/?p=2451http://www.freebalance.com/blog/?p=2451http://www.freebalance.com/blog/?p=2451http://www.freebalance.com/blog/?p=2390http://www.freebalance.com/blog/?p=2390http://www.freebalance.com/blog/?p=2390http://www.freebalance.com/blog/?p=2451http://www.freebalance.com/blog/?p=2399http://www.freebalance.com/news/presentations/2011-03-15achievinggovernmentsuccess.pdfhttp://www.computerworld.com/s/article/9229070/Survey_finds_ERP_software_project_overruns_39_distressingly_common_39_http://www.computerworld.com/s/article/9229070/Survey_finds_ERP_software_project_overruns_39_distressingly_common_39_http://www.freebalance.com/news/presentations/2011-03-15achievinggovernmentsuccess.pdfhttp://www.freebalance.com/news/presentations/2011-03-15achievinggovernmentsuccess.pdfhttp://www.computerworld.com/s/article/9229070/Survey_finds_ERP_software_project_overruns_39_distressingly_common_39_http://www.computerworld.com/s/article/9229070/Survey_finds_ERP_software_project_overruns_39_distressingly_common_39_http://www.zdnet.com/blog/projectfailures/exploring-the-devils-triangle/5676http://www.zdnet.com/blog/projectfailures/exploring-the-devils-triangle/5676http://www.freebalance.com/news/presentations/2011-03-15achievinggovernmentsuccess.pdf -
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what are good
practices for PFM
and GRPsequencing?
Conclusions
1. There is growing evidence that PFM sequencing is becoming more of a sciencethan an art form. Open data and governance assessments provide material forsequencing roadmaps.
2. Government human capacity determines reform momentum and reformsustainability.
3. The modernization rate is much faster in developing countries than experiencedin developed countries. This means that the technology approach and
implementation practices need to be aligned to PFM needs to ensure
effectiveness.
There are very few best practices but many good practices in Public Financial Management.
FreeBalance, a global provider ofGovernment Resource Planning(GRP) software and services
shares good practices from experience withdeveloped and developing country governments
around the world.
www.freebalance.com
www freebalance com
http://www.freebalance.com/http://www.freebalance.com/http://www.freebalance.com/products/http://www.freebalance.com/products/http://www.freebalance.com/products/http://www.freebalance.com/customers/http://www.freebalance.com/customers/http://www.freebalance.com/customers/http://www.freebalance.com/customers/http://www.freebalance.com/http://www.freebalance.com/http://www.freebalance.com/http://www.freebalance.com/customers/http://www.freebalance.com/customers/http://www.freebalance.com/products/http://www.freebalance.com/