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

Stefan Leider et al.
formal and informal PFM institutions in Malawi: “The budget process is a
theatre that masks the real distribution and spending. All the actors, from civil
society, government, and donors seem aware that many of their statements
and actions have little bearing on [the] actual distribution of resources” (Rakner
et al. 2004, iv ).
Box 10 taken from Rakner et al. (2004, 15 et seq.) gives a vivid illustration of
this phenomenon with regard to the MTEF process in Malawi. Similar discrepancies
can be observed for the budget implementation and oversight
processes in Malawi.
Evidence shows that in many cases the formal PFM processes at local level
are distorted. There are three main reasons for this.
First, councillors regularly do not partake in important local PFM processes
even if they are formally required to do so. Financial constraints often make it
impossible for the DAs service committees and the full assembly to meet on a
regular basis to decide and approve submissions of the DEC. Lack of finances,
but also poor infrastructure, in particular transportation, telecommunication,
and postal services make communication between councillors and
the District Secretariat difficult.
The second reason is the lack of skills and experience of elected councillors.
Many elected members have not developed a routine with regard to formal
procedures of decision-making and agenda setting for scheduled meetings.
Therefore, decision-making procedures such as the approval of DDPs or the
local budget often do not follow formal procedures and regulations. Not being
familiar with routine formalities disables decision-making, leads to frustration
and weakens commitment. This scenario does not only apply to DA
members, but also to those members engaged in planning processes at lower
levels (e.g. ADCs or VDCs).
78 German Development Institute