Transcript Rolling out of the PEFA Performance Measurement Framework

The PEFA Framework –
rationale, adoption and use
PEMPAL Plenary Plus
Istanbul, February 27, 2008
Jim Brumby, World Bank
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Content
Rationale for the PEFA Framework
Status on rolling-out
Challenges & Opportunities
Services provided by the PEFA program
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Rationale for
the PFM Performance
Measurement Framework
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PEFA Objectives
To improve:
• government ownership
• harmonization
• donor alignment
• results orientation
in the area of public financial management
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The Strengthened Approach
A country-led reform program – including a
PFM reform strategy and action plan
A donor-coordinated program of analytical,
technical and financial support
A common information pool – based on a
framework for measuring and monitoring results
over time
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Creating a Common Information Pool
Creation of the Common Information Pool
is facilitated by adopting the PEFA
PFM Performance Measurement
Framework
Application of the PEFA Framework is
entirely decentralized to the country
level (if, when, how to use Framework)
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The PFM Performance
Measurement Framework
28 + 3 PFM performance indicators
Supported by an explanatory and analytical PFM
performance report
Indicator scoring based on:
Transparency
Evidence
Objective criteria
Internationally recognized good PFM practice
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What can countries use PEFA
assessments for ?
Inform PFM reform formulation, priorities
Monitor results of reform efforts
Harmonize information needs by external
agencies around a common assessment tool
Compare to and learn from peers
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Status on rolling-out
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PEFA Assessments : roll-out trend
PEFA Assessment Roll-Out
70
65
60
Number of Assessments
55
50
45
40
Completed
35
On-going
30
25
20
15
10
5
0
May
'05
Aug
'05
Nov
'05
Jan
'06
May
'06
Oct
'06
Mar
'07
Aug
'07
Update dates of PEFA Assessm ent
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Roll-out status and outlook
Assessment Status as at August 2007
About 3 assessments completed every month
67 substantially completed reports,
covering 60 countries
15 on-going but report not yet issued
30 agreed with government but not started
Outlook for end of 2008
90 countries covered
10 repeat assessments
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Geographical distribution
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Geographical coverage
Large regional variations
High : (>80% of countries covered by completed
or ongoing work)
Sub-Sahara Africa and Caribbean
–
–
Medium : (40-60% of countries covered)
Eastern Europe, Asia, Pacific, Latin America
–
Low : (<25% of countries covered)
Other (Middle East / North Africa & high income)
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Eastern Europe / Central Asia
12 countries / territories implementing
PEFA assessments (as of Feb. 2008):
Kyrgyz Republic 2005
Albania 2006 (part of PEIR and CFA)
Armenia 2006, update 2008
Moldova 2006
Serbia 2006
Ukraine 2006
Kosovo 2007
Tajikistan 2007
Azerbaijan 2007
Macedonia 2007 (as part of CFA)
Georgia 2007
Belarus 2008
completed, published
completed
draft, update starting
completed, published
completed, published
completed, published
completed, published
completed, published
draft final
completed
draft report
starting
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Challenges & Opportunities
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Global Issues
Tracking progress over time
when will repeat assessments be implemented in
ECA?
Sharing of assessment results
dissemination of reports in ECA not a big issue. 6 out
of 8 completed reports are publicly available
Quality of assessments and reports
improving
Country comparison
not the primary objective. May be done with caution.
How to move from assessment to reform action
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Quality is key to credibility and use
Ex-ante and ex-post factors affecting quality
 Government engagement in planning and
implementing the assessment
 Full donor collaboration
 A well planned and managed process
 Adequate resources, quantitative & qualitative
 Comprehensive review arrangements for TOR
and reports
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Country Comparison
Global trends and regional differences
may be identified
Comparison of two countries must be
done very cautiously.
Comparing the scores alone is dangerous:
Technical definitions may be different
Carefully read each report to understand
performance differences behind the scores
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Relative Performance in PFM
Country characteristics affecting overall level of
ratings:
Main factor: Economic development
Minor factors: Population size, aid dependency,
degree of democracy
No significant link to: regional affiliation or
administrative heritage
Comparing ECA countries to global average of
60 countries:
Overall level of ratings - close to global average
Higher than average - budget credibility
Lower than average - external oversight
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From assessment to reform action
Analyze results and identify priorities
what weaknesses are important, which ones less so?
technical links – platform approach?
what is the government politically motivated to
address
The identify underlying causes for weak
performance in selected areas and prepare
capacity building plan
Peer discussion can be useful for identifying
reform priorities
Country case – Norway
one of the richest countries in the world
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Norway’s self-assessment
Most indicators scored ‘A’ or ‘B’ but …
Several indicators rated ‘C’ or ‘D’
Weaknesses identified:
No central collection of ex-ante budget information from
municipalities (PI-8iii)
No central overview of risks from AGAs and SOEs (PI-9i)
No multi-year program budgeting (PI-12)
No data on use of open competition in procurement (PI-19i)
SAI criticism of procurement routines in agencies (PI-19ii)
No comprehensive system of internal audit (PI-21)
No central collection of info on funding of primary services (23)
Little follow up by agencies on external audit findings (PI-26 iii)
Little parliamentary scrutiny of external audit reports (PI-28)
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Reform priorities for Norway !
Government reaction to low ratings:
Need for improvements confirmed
procurement routines and system monitoring (PI-19)
scrutiny / follow up on external audit reports (PI-26 & 28)
Need for improvements questioned
Not the responsibility of central government
because primary service delivery is decentralized to municipalities
PI-8 and PI-23
because public administration is decentralized
PI-9 and PI-21
Not a priority for central government
multi-year program budgeting (PI-12)
Will a domestic or international debate about
the latter be initiated when the report is published
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Services provided by
the PEFA program
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Support to assessment managers
Support tools on the website (www.pefa.org):
List of completed, ongoing and planned
assessments – updated periodically
Links to completed reports, when public
Support on request:
Advice / Video-conference briefings to country
teams on assessment planning
List of consultants with PEFA experience
Review of terms of reference
Quality reviews of draft assessment reports
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Support to Assessors
Support tools on the website:
The Framework (English, French, Spanish, Portuguese,
Russian, Arabic)
Calculation spreadsheets for some indicators
Guidance on information / evidence for assessment
Clarifications and additional guidance on indicators
Training materials
Support on request:
Indicator interpretation and other advice to
assessors during implementation
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Stay in touch with PEFA
Visit our website : www.pefa.org
Send us questions : [email protected]
Get on our news distribution list : Send us your
name, organization and email address
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Thank You
for Your Attention
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