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Stefan Leiderer et al. Merit-based and transparent recruitment and promotion of civil servants Insufficient professional knowledge of PFM procedures and instruments is identified as a relevant disturbing factor for PFM in Malawi. In order to guarantee that adequately qualified candidates are recruited for vacancies, the government should ensure that recruitment und promotion of civil servants is transparent and strictly merit-based. Donors should pay particular attention to this as well and follow up on government’s commitments. Generating multiplier effects for sustainable capacity development The introduction of new PFM tools should always be accompanied by systematic, long-term and timely capacity development. It has to be ensured that the capacity of institutions is developed and not only the capacity of individuals. This involves establishing mechanisms to disseminate specific knowledge acquired by individuals to all relevant stakeholders in order to preserve the gained knowledge and capacity for the institution. Improved coordination between MoF and MEPD The coordination between MoF and MEPD is not always satisfactory, in particular with regard to ensuring the consistency of the PSIP and the capital budget. The government should consider establishing a mechanism that guarantees that the first year of the PSIP and the capital budget are consistent. This is a necessary precondition to increase transparency within the system, enforce the accountability of MoF and MEPD and to ensure that national investment projects are really selected according to national priorities as stated in the MPRSP. For this it is necessary, for example, that sector ministries follow formal procedures in submitting their proposals to MEPD and not only to MoF. Better involvement of local stakeholders in the recruitment of District Secretariat staff to strengthen accountability between local entities The recruitment process for key positions is still very long, unpredictable and centralised, above all for the local government level. In the medium term, it may prove useful to increase the participation of local authorities in the selection of candidates for District Secretariats so that candidates feel more accountable to the local stakeholders. This could be achieved, for example, by 148 German Development Institute
Public Financial Management for PRSP Implementation in Malawi changing the composition of the recruitment commission in the MoLGRD, giving more weight to local stakeholders such as the DC and representatives of the DEC and DA. In the long run, the GoM could take into consideration whether responsibilities for the recruitment of local level staff should be transferred to the districts in order to reduce bureaucracy and increase the accountability of local civil servants to local government. Performance based resource allocation to local assemblies Local assemblies that are more committed to own revenue generation should benefit from central government transfers, based on the “performance matrix”, created by the NLGFC. This benchmark tool can be used to strengthen the awareness and creativity among local assemblies to become more autonomous in financial matters. Donors support for revenue generation capacity at local level More attention needs be paid to revenue generating abilities of the state and the rural districts in particular. One possible option to broaden the local revenue base would be to assist districts with the costly and time-consuming activity of valuing and rating areas to levy property tax. Better alignment of donor support to DDPs Donors financing projects at district level must make sure not to undermine local structures and procedures. In particular, local planning procedures have to be taken serious. As a rule, only projects emerging from local District Development Plans should receive substantial donor support. Consequent support to and use of the new Local Development Fund Existing financing mechanisms to fund local development projects should be consolidated into the proposed Local Development Fund (LDF) with the objective to — support planning and management of development resources at the assembly and community levels; — provide resources which ensure that development investment respond to the priority development needs; German Development Institute 149
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Studies Deutsches Institut für Ent
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Preface The present study on ‘Pub
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4 The Case of Malawi 44 4.1 Why Mal
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Bibliography 151 Annexes 157 Tables
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Boxes and Tables in the Annexes Box
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DS EHP ESAF EU GBS GDP GoM GRF GTZ
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TOR UDF UNCDF UNDP UNV USAID VAP VD
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Stefan Leiderer et al. PRSP impleme
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