Managing Development Resources
The Use of Country Systems in Public Financial Management
Successful development depends in large part on the efficiency, integrity and effectiveness
with which the state raises, manages and expends public resources. Improving the rules
and institutions governing these activities should be a major component, therefore,
of any development approach. Given that strengthening Public Financial Management
(PFM) is at the heart of the Millennium Development Goals, and good governance more
generally, the Paris Declaration (2005) seeks to promote joint efforts in this area
between donors and partner countries. This report takes stock of progress in strengthening
public financial management systems and provides recommendations on how best to facilitate
achieving the 2010 targets set out in the Paris Declaration.
It sets out the benefits of and rationale for using country systems, assesses progress
in meeting the Paris Declaration targets, reviews the landscape of PFM reforms in
partner countries, looks at drivers of successful PFM reforms, examines the factors
that influence decisions to use country PFM systems, focusing on the perceived risks
and their assessment and management, and describes the PEFA (Public Expenditure and
Financial Accountability) assessment, which provides information on the quality of
a country’s PFM system.
This report shows that now, as perhaps never before, partner countries and donors
must strive to build mutual trust and work together in a true partnership for results.
Published on March 24, 2009Also available in: French
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