Version 7 section

• brief discussion State of Public Financial Management

Reform in Developing Countries

FreeBalance 2013

Survey

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

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

Version 7 section

• brief discussion

Version 7 section

4 4

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

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• brief discussion

5 5

23%

45%

32%

What is the gap between PFM laws and practice in your country?

Wide, procedures operatemuch differently thanstated by the law

Some gaps between lawsand practice

Gaps are limited

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• brief discussion

6 6

9%

63%

28%

What is the biggest issue inhibiting improved PFM in your country?

Better laws

Better leadership

Focus on informalprocesses

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• brief discussion

7 7

5%

49%

46%

Poll The Open Government Partnership (OGP)…

Is designed to makegovernments look like theyhave better governancethan they do

Is designed to improvegovernance throughtransparency

Improves transparency butmore is needed to improveaccountability

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• brief discussion

8 8

36%

64%

Are government transparency initiatives in your country designed to

Promote your country bysignaling reform butdoesn't change much

Designed to improvegovernance

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• brief discussion

9 9

24%

76%

Do you believe there are PFM best practices…

Best practices that shouldbe adopted by allgovernments

Good practices wheresome are better based onthe country context

Version 7 section

• brief discussion

10 10

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

Version 7 section

• brief discussion

11 11

26%

60%

14%

Does your country have a realistic PFM reform roadmap?

Yes

Somewhat

No

Version 7 section

• brief discussion

12 12

55% 42%

3%

Do you have a good sense of what your country should be doing in PFM reform?

Yes

Somewhat

No

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• brief discussion

13 13

7%

33%

51%

9%

Is PFM reform momentum in your country moving?

Too fast

Right speed

Too slow

There is no PFMmomentum

Version 7 section

• brief discussion

14 14

59% 24%

18%

Is PFM Reform momentum sustainable in your country?

Yes

No

No Opinion

Version 7 section

• brief discussion

15 15

23%

45%

32%

What is the gap between PFM laws and practice in your country?

Wide, procedures operatemuch differently thanstated by the law

Some gaps between lawsand practice

Gaps are limited

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• brief discussion

16 16

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 %

Version 7 section

• brief discussion

17 17

33%

33%

15%

18%

Does your country get consistent advice from different donors?

Yes

Mostly the Same

Mostly Different

Completely Different

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• brief discussion

18 18

25%

62%

13% 0%

Donor technical assistance for ICT technology

Is very effective

Is somewhat effective

Is somewhat ineffective

Is very ineffective

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• brief discussion

19 19

36%

15%

32%

17%

Does PFM advice from donors change when donor representatives change?

Yes

Mostly inconsistent advice

Mostly consistent advice

No

Version 7 section

• brief discussion

20 20

66%

12%

22%

I get better advice on PFM reform…

At ICGFM and similarconferences andpresentations

From technical assistancesponsored by donors

From research and reading

Version 7 section

• brief discussion

21 21

60% 27%

8% 5%

Does your country get consistent PFM advice from experts?

Yes

Mostly the Same

Mostly Different

Completely Different

Version 7 section

• brief discussion

22 22

41%

59%

Have you found that donors request PFM processes that are

Better than in manydeveloped countries

Realistic given the countrycontex

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• brief discussion

23 23

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

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• brief discussion

24 24

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

Version 7 section

• brief discussion

25 25

24%

51%

31%

Our government FMIS systems…

Are fully managed andsupported by governmentstaff

Are managed andsupported by governmentstaff for normal situations

Require a significantnumber of outsideconsultants to manage

Version 7 section

• brief discussion

26 26

51%

13%

29%

7%

The costs to manage our government FMIS system are…

Far more than they shouldbe

Are a bit more than theyshould be

Are about as expensive asthey should be

Are less than expected

Version 7 section

• brief discussion

27 27

11%

57%

33%

The PFM processes in my country …

Are mostly automated

Somewhat automated

Mostly manual

Version 7 section

• brief discussion

28 28

58% 30%

12%

Is the FMIS system in use in your country financially sustainable?

Yes

No

No Opinion

Version 7 section

• brief discussion

29 29

82%

5%

13%

In your experience do FMIS systems

help accelerate PFM reform

have no impact on PFM reformmomentum after implementatio

slow PFM reform

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

30 30

5. Exploring Other PFM Elements

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• brief discussion

31 31

88%

12%

Will increasing Open Budgets Index

Improve the perception ofgovernance in yourcountry

Have no effect onperception

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• brief discussion

32 32

36%

49%

2%

13%

Is PEFA sufficient to help you map out PFM reform?

Yes

Helps somewhat

Doesn't Help

What is PEFA

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• brief discussion

33 33

39%

51%

10%

Do you believe that your country can leapfrog other countries in PFM reform?

Yes

In some areas

No

Version 7 section

• brief discussion

34 34

52%

29%

19%

Direct budgetary support to your country will…

Reduce corruption,improve capacity andresults

Have no significantgovernance impact

Increase corruption andmake developmentoutcomes poorer

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• brief discussion

35 35

51% 49%

IS PFM reform sequencing

a science

an art form

Version 7 section

• brief discussion

36 36

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