Syndicate content

public finance management

Public Financial Management reforms - signals or real change?

Renaud Seligmann's picture


Two decades ago, when I interned at the French Embassy’s economic mission in Moscow, I was asked to look into bankruptcy laws and their implementation. The Embassy wanted to advise French companies on how to get business done in the new Russia—we are talking mid-1990s—when there were no reliable guidebooks on how to navigate the transition to a market economy.

So I was asked to read recently approved, Western-inspired bankruptcy laws, given a phone book and asked to find two dozen companies around Moscow. I was to meet with their CEOs and find out how insolvency and bankruptcy procedures actually worked in practice.

I came away with one key finding: the rules on the books were not a very useful guide to how bankruptcy worked in practice. In fact, the distortions brought about by hyperinflation, bartering and the transition from Soviet to Western accounting meant the liquidity and solvency ratios that underpinned the institution of bankruptcy had essentially become meaningless.

China and the World Bank: Partners for reform

Jingrong He's picture


In the last ten years, China’s public procurement market has grown tenfold reaching an estimated $270 billion in 2013. Such significant growth has made the improvement of the public procurement system an imperative for the Chinese Government.

In the context of China’s commitment to enhance its procurement system, it is also seeking to accede the World Trade Organization’s Government Procurement Agreement (WTO GPA). As China looks to necessary procurement reforms, the World Bank has partnered with the Ministry of Finance to support these efforts, which have the potential to have transformational impact.

Myanmar sees early progress in its public procurement reform

Zhentu Liu's picture
 Markus Kostner / World Bank


Myanmar is embarking on a triple transition: from an authoritarian military system to democratic governance; from a centrally directed economy to market oriented reforms; and from several decades of conflict to peace.

Since 2011, leaving behind decades of isolation, fragility and conflict, a reformist government has steered unprecedented political and economic reforms intended to open Myanmar to the global economy, boost growth, and reduce poverty.
 
As part of its economic reforms, Myanmar seeks to establish a modern public procurement regime and has taken a series of actions including the issuance of two Presidential Instructions and two directives on Public Procurement to establish the basis for an open and competitive public procurement system.

Public financial management reforms: determined by conditions or resulting from the right approach?

Verena Fritz's picture



Reforms of public financial management (PFM) systems – pursued by many countries and supported by development partners -- have attracted quite a bit of debate and analysis in recent years. Significant variation in progress achieved and lack of broad-based and sustained improvements in metrics of PFM performance, as reflected in CPIA ratings and PEFA scores, suggest to many observers that outcomes have not matched reform efforts and expectations. 

This has led to a search for better solutions in two directions. First, grounding reform efforts in stronger problem analysis, and based on this, developing a better fit of reform approaches to specific country circumstances. Second, seeking a better understanding of non-technical aspects and, in particular, the role of political economy drivers in influencing which PFM reforms are pursued where and with what degree of success. ‘Doing things differently’ along these lines sounds promising – but reformers and development partners may well question whether we know enough to pursue such alternative approaches on a wider scale. 

Apply for SAFE Trust Fund grants

Soukeyna Kane's picture



The SAFE Trust Fund application (Word document) is now open until 27 February 2015.
 
What is SAFE?
 
SAFE means Strengthening Accountability and the Fiduciary Environment. It is a Trust Fund group administered by the World Bank and established by the Swiss State Secretariat for Economic Affairs (SECO) and the European Commission with the aim of improving public financial management in the Europe and Central Asia region. This Trust Fund group provides support for activities to assess public financial management (PFM) performance, identify and implement actions to achieve improvements and share knowledge and good practices across countries in the region.

How Would You #TakeOn Corruption and Promote Good Governance?

Ravi Kumar's picture
Corruption greatly undermines government effectiveness.
Source: futureatlas.com

Also available in: Español | Français | Arabic  

On a hot dry day in June, a woman in her early 40s is getting ready for journey to a nearby town. She is excited even though she will walk more than three hours on foot—she is going to meet with a government loan officer to try to get the money she needs to buy fertilizer and other supplies for her farm. She needs to grow and sell enough crops to pay for her son to continue school for the next year.
 
She gets a mug of water from a bucket to put out the open wood fire that she uses to cook meals for her family. Then she pulls her slippers from the thatched roof and leaves her hut.
 
As she walks, she feels hopeful. She believes this loan will change her family’s future. For the past 6 months, she has made numerous trips to this office because the government official had told her that before her application could be considered, the paperwork must be accurate and complete.  

Meet your new friend, the finance minister

Philipp Krause's picture

Finance on scrabble board with buildings superimposed on it.King James had it right early on. “All Treasurers, if they do good service to their masters, must be generally hated”, he remarked after he couldn’t protect his own treasurer Lionel Cranfield from being thrown into the Tower of London in chains. Cranfield had made too many powerful enemies by opposing an expensive war the treasury couldn’t afford. His many successors through the ages can probably relate without too much difficulty.