Public Financial Management for PRSP - Deutsches Institut für ...

More documents

Recommendations

Info

Stefan Leiderer et al. 9. Transparency: information about budget decisions must be accessible, clear and communicated to the wider community 10. Accountability: decision makers must be held responsible for the exercise of the authority provided to them underinvestment in training and IT, and poor working conditions degrade operational efficiency 8. Informal management: extralegal arrangements dictate how government operates in recruitment, procurement, etc. 9. Corruption: lack of enforcement of formal rules breeds illegal behaviour, which goes undetected and unsanctioned Source: ODI (2004) The effective implementation of PRSPs through annual budgets highly depends on a good match between formal rules and procedures and actual practices of PFM. It is thus closely linked to at least three key factors: the political will of the stakeholders in the budget process, an elaborated institutional framework that supplies them with the right incentives and efficient control mechanisms, sufficient technical, human and financial capacity that allows for executing tasks throughout the budget cycle efficiently and effectively. The following chapters examine in detail how these influencing factors determine the relevance of the formal framework to the actual practice of PFM in developing countries and thus the chances of effectively implementing PRSPs. 40 German Development Institute
Public Financial Management for PRSP Implementation in Malawi 3 Main Research Question, Research Design, and Methodology This chapter presents the main research question and gives a brief overview of the research design chosen for this study. It concludes with an overview of the structure for the remainder of this report. 3.1 Main research question The research focus of this study is on the PFM system in a in many ways typical Sub-Saharan-African country, paying heed to the enormous relevance of a well functioning PFM system for implementing poverty reduction strategies and for linking and integrating PRSP and decentralisation. The public budget is the single most important tool for operationalising and implementing policies based on national strategic development plans. At the same time, if a country pursues a decentralisation policy, this means that new levels of government are created or that existing sub-national levels of government are assigned additional powers, responsibilities and resources. This fundamental reorganisation of the state has far-reaching implications for the national PFM system, as its functions need to be reorganised in a way that allows for the successful integration or at least effective coordination of planning, budgeting and implementation processes across the various levels. Most research so far focuses on either PRSP and PFM at the central level 3 or on decentralisation and local planning separately without linking the various levels. Thus, this study extensively covers PFM at local level and examines how it is integrated into the national PFM system with regard to implementing national strategic priorities. For this purpose, it examines the links (existing and missing) and the incompatibilities between PFM at local and central government level. In order to study these complex relations the research team deemed a case study design as the most adequate approach. For a number of reasons (detailed in Chapter 4) Malawi has been identified as a typical showcase for a poor developing country in Sub-Saharan-Africa that pursues both the implementation of a national PRSP and an ambitious decentralisation agenda simultaneously. 3 For recent studies on Malawi, see Rakner et al. (2004); IMF (2004a); IMF (2004b); South African Institute of International Affairs (2004) and Durevall / Erlandsson (2005). German Development Institute 41
Page 3 and 4:
Public Financial Management for PRS
Page 5 and 6:
Studies Deutsches Institut für Ent
Page 7: Preface The present study on ‘Pub
Page 10 and 11: 4 The Case of Malawi 44 4.1 Why Mal
Page 12 and 13: Bibliography 151 Annexes 157 Tables
Page 14 and 15: Boxes and Tables in the Annexes Box
Page 16 and 17: DS EHP ESAF EU GBS GDP GoM GRF GTZ
Page 18 and 19: TOR UDF UNCDF UNDP UNV USAID VAP VD
Page 20 and 21: Stefan Leiderer et al. PRSP impleme
Page 22 and 23: Stefan Leiderer et al. A particular
Page 24 and 25: Stefan Leiderer et al. come to vary
Page 26 and 27: Stefan Leiderer et al. Particularly
Page 28 and 29: Stefan Leiderer et al. donors are s
Page 30 and 31: Stefan Leiderer et al. - Improved c
Page 32 and 33: Stefan Leiderer et al. medium- to l
Page 34 and 35: Stefan Leiderer et al. tion of the
Page 36 and 37: Stefan Leiderer et al. and systemat
Page 38 and 39: Stefan Leiderer et al. The methods
Page 40 and 41: Stefan Leiderer et al. Part I: Conc
Page 42 and 43: Stefan Leiderer et al. the PRSP app
Page 44 and 45: Stefan Leiderer et al. Those arguin
Page 46 and 47: Stefan Leiderer et al. accounts, bu
Page 48 and 49: Stefan Leiderer et al. It must be n
Page 50 and 51: Stefan Leiderer et al. The typical
Page 52 and 53: Stefan Leiderer et al. Administrati
Page 54 and 55: Stefan Leiderer et al. Figure 2: Le
Page 56 and 57: Stefan Leiderer et al. ety may have
Page 60 and 61: Stefan Leiderer et al. The main res
Page 62 and 63: Stefan Leiderer et al. 3.3 Structur
Page 64 and 65: Stefan Leiderer et al. never gained
Page 66 and 67: Stefan Leiderer et al. its relevanc
Page 68 and 69: Stefan Leiderer et al. pronounced i
Page 70 and 71: Stefan Leiderer et al. — Several
Page 72 and 73: Stefan Leiderer et al. Table 1: Pop
Page 74 and 75: Stefan Leiderer et al. more by info
Page 76 and 77: Stefan Leiderer et al. tion of the
Page 78 and 79: Stefan Leiderer et al. Table 2: The
Page 80 and 81: Stefan Leiderer et al. ing due to o
Page 82 and 83: Stefan Leiderer et al. authorised t
Page 84 and 85: Stefan Leiderer et al. (in particul
Page 86 and 87: Stefan Leiderer et al. Figure 3: In
Page 89 and 90: Public Financial Management for PRS
Page 93 and 94: Figure 5: Institutional Setup of Ma
Page 97 and 98: Box 10: The formal and informal ins
Page 99 and 100: MTEF Stage 6 MoF holds consultation
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Table 6: GRF Allocations Approved e
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Figure 10: PFM under uncertainty Ca
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175:
Annexes
Page 178 and 179:
Stefan Leiderer et al. are employed
Page 180 and 181:
Stefan Leiderer et al. During the f
Page 182 and 183:
Stefan Leiderer et al. Box A 1: Tri
Page 184 and 185:
Stefan Leiderer et al. The politica
Page 186 and 187:
Stefan Leiderer et al. Annex 2 Tabl
Page 188 and 189:
Stefan Leiderer et al. Mayesa, Mr.
Page 190 and 191:
Stefan Leiderer et al. Thole, Pamel
Page 192 and 193:
Stefan Leiderer et al. 6 Committee
Page 194 and 195:
Stefan Leiderer et al. Chanza, Bill
Page 196 and 197:
Stefan Leiderer et al. Full Assembl
Page 198 and 199:
Stefan Leiderer et al. owned busine
Page 201 and 202:
Publications of the German Developm
Page 203 and 204:
Discussion Paper 16/2007 Schirm, St
show all

Public Financial Management for PRSP - Deutsches Institut für ...

Create successful ePaper yourself

Delete template?

Save as template?