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Stefan Leiderer et al. medium- to long-term perspective. The most pressing need of NLGFC is getting additional human resources rather than receiving technical training of existing staff. Now seems to be a particularly good time to discuss the form of support for the NLGFC. In the course of phasing out the Decentralisation Secretariat, some of this institution’s responsibilities are being taken over by NLGFC, particularly with regard to local planning. Taking a medium- to longterm perspective in supporting NLGFC requires that regular evaluations are carried out to enquire whether the structure and responsibilities of NLGFC are still adequate for facilitating decentralisation or whether they have to be adapted. At the same time it is critical that donor’s support to NLGFC is evaluated regularly and, if necessary, adapted to new requirements. 14 German Development Institute
Public Financial Management for PRSP Implementation in Malawi 1 Introduction Recent years have seen a number of fundamental and far-reaching reorientations in the debate on international development policy and cooperation; Poverty Reduction Strategies (PRS) – initially formulated as a pre-requisite for debt relief under the HIPC initiative – have become widely accepted as comprehensive strategic frameworks for many developing countries’ efforts to reach the Millennium Development Goals by 2015. Prepared through a participatory process involving civil society and development partners, these papers (PRSPs) are meant to describe a country's macroeconomic, structural and social policies and programmes to promote growth and reduce poverty as well as associated external financing needs (World Bank 2005). By June 2006, fifty countries had prepared a full PRSP (World Bank 2006a). International donors in turn have committed themselves to align their support to developing countries’ own strategic policies and to rely increasingly on the recipient countries’ own administrative systems to manage donor contributions. 1 Consequently, PRSPs have also become central to the provision of development assistance in terms of both grants and loans (ODI 2004, 3) as they represent the key reference document for support from bi- and multilateral donor agencies through Programme-based Approaches (PBAs), including general and sector budget support. At the implementation stage, PRSPs have to be translated into medium-term policies and programmes, which in turn have to be implemented through annual budgets. Donors are increasingly funding these budgets. Accordingly, the debate on PRSP implementation and direct budget support increasingly focuses on the quality of public financial management (PFM), or – to stick to the jargon – Good Financial Governance criteria (cf. IMF / EO 2004, 4; GTZ 2006). There is another important topical issue in the current debate on international development policy, besides the discussion on PRSPs, PBAs and PFM. It is the continued drive for decentralisation in developing countries. The effectiveness and efficiency of public service delivery for poverty reduction, or so it is hoped, can be improved by moving decision-making closer to the grassroots and thereby also strengthening the political participation and representa- 1 The Paris Declaration on Aid Effectiveness from March 2005 represents the latest milestone in this process. German Development Institute 15
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Publications of the German Developm
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Discussion Paper 16/2007 Schirm, St
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