Public Financial Management International trends

Transcript:Public Financial Management International trends:
Public Financial Management International trends Priorities in Armenia Jens Kromann Kristensen Senior Public Sector Specialist The World Bank Agenda Perspectives on public financial management International trends and lessons Reform trends Lessons Impact of the financial crisis Public Financial Management in Armenia Status Challenges Vision: The Armenian Governments Public Financial Management Strategy Q/A - discussion Perspectives… PFM is power, policy and politics Budgeting is power, policy and politics – the authoritative allocation of resources in a society – who gets what, how, why and when The study of the budget should be a center piece of political science Surprisingly, budgeting not very well researched academically. Most recent analyses are operational/practical/applied research Reform of budget systems is the structuring of politics and power…. …but obviously only part of the story… Perspectives… PFM and good governance The budget and the public financial management provides a good entry point for enhancing these principles in a polity. Perspectives… PFM and Development Perspectives… Objectives Managing Public Expenditure, introduction, Allen & Tomasi, OECD 2001 Perspectives… The public financial management cycle 7 Project monitoring Project appraisal Resource allocation Liquidity management Expenditure control Monitoring & controlling Post event review Accountability Expenditure review Source: Adapted from Integrated Financial Management. Michael Parry, International Management Consultants Limited. Training Workshop on Government Budgeting in Developing Countries. THE UNITED NATIONS. December 1997. Annual Budgets Medium term plans Planning systems Funds release Accounting Reporting Audit system Expenditure review Changing global context: emerging pressures on the State Growing global competition – demands for macro stability & competitive investment climate Growing citizen demands for effective service delivery, transparency, & accountability Growing fiscal demands for efficiency & effectiveness Vision– A more capable, responsive & high-performing State that: Provides stability & credible investment climate for growth Delivers public services to make growth inclusive & equitable Ensures value-for-money of public spending Demonstrates transparency, accountability & good governance Demands on public sector: much more performance focus A public sector that serves the public and delivers on promises is less inward-looking and rule-bound, and more performance-focused dynamically achieves key objectives and outcomes 8 International… Trends Sources: Presentation by Guenter Heidenhof, Sector Manager, Public Sector & Governance November 2010, The World Bank and Manning and Shepherd, Public Management Reform: should Latin America learn from the OECD? 9 International… Trends Source: Manning and Shepherd, Public Management Reform: should Latin America learn from the OECD? IN HIGH INCOME OECD COUNTRIES Increasing emphasis on allocative and