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Stefan Leiderer et al. The methods used in conducting this case study were mainly qualitative. The research team conducted more than 140 semi-structured interviews with various stakeholders and carried out an extensive review of literature and official documents. This set of data was complemented with data gained from nonparticipant observations and informal conversations. The interview partners came from various contexts, among them politicians and administrative personnel at various government levels, staff of multi or bilateral donor agencies, non-governmental organisations (NGOs), the media, traditional authorities and ordinary citizens (for a list of interview partners see Annex 2). The research project was closely coordinated with a Malawian partner organisation, the National Local Government Finance Committee (NLGFC) as well as with GTZ experts in Malawi and Germany. A particular focus of this study is on education and health to account for the central role these sectors play in the MPRSP and with regard to poverty reduction in general. Furthermore, these sectors are often pilot sectors for decentralisation reforms or the introduction of new development assistance approaches such as SWAps. The sectors of primary education, basic health and democratic decentralisation are also focal areas of Malawi-German development cooperation. The results of this study are therefore particularly relevant for German development agencies. Structure of the report This report is divided into three parts. First, Part I introduces the three subjects of this study (the PRSP approach, decentralisation in developing countries and public financial management) in detail and sets the conceptual framework for this study (Chapter 2). It then formulates the main research question and presents the research design and methodology (Chapter 3). Part I ends with a presentation of the case study (Chapter 4), providing the rationale why Malawi was selected as case study and some relevant background information on the country, particularly on recent political history, decentralisation, the Malawian PRSP and on the sectors education and health in Malawi. Part II presents the empirical findings collected during the research. Theory and practice of PFM in Malawi are contrasted with each other and the blatant discrepancy between formal rules and procedures and actual PFM practice is discussed (Chapter 5). Key areas where major weaknesses undermine Malawi’s formal PFM-system are identified (Chapter 6). 20 German Development Institute
Public Financial Management for PRSP Implementation in Malawi Part III draws together the empirical findings, linking weaknesses in the areas identified to observed PFM practices in Malawi. The findings are put into context with recent literature on institutional development and political transition in Africa and carefully generalises the empirical findings for Malawi (Chapter 7). Part III ends with recommendations for donor agencies as well as Malawian government bodies to address the challenges identified in this study (Chapter 8). German Development Institute 21
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Annexes
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Publications of the German Developm
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Discussion Paper 16/2007 Schirm, St
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