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8/2/2019 PEFA Better Understanding Trends- Wescott--EnG
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Understanding trends in PFM
system performance
PEFA Open Forum
ICGFM Miami - May 2012Clay Wescott
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Positive results from Evaluation ofWorld Bank Support to PFM
Sharp increase in lending: number of operations withPFM components increased by half around 2005
Increase partly attributable to use of actionableindicators like PEFA, which generate a list of potentialprior actions and technical assistance needs
Positive results from Bank support: 62% of countriesimproved their PFM rating (CPIA) from 1999-2006,compared to only 25% who didnt receive Bank support
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Considerable challenges remain In 2010, average PFM score for the World Banks
client countries was less than 60% of the top rating.
PFM ratings are usually equal or better than for civilservice administration, but never by more than onegrade; civil servants are needed to implement PFM
Improved PFM takes a very long time to translate to
improve public services; in the 20th century, it tookthe fastest 20 reformers 20 years to achieve basictransformation of bureaucratic quality.
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Analysis of repeat PEFA assessments Results from 32 countries found better progress
on formal than functional PFM features
The difference is greatest where progress can beachieved working with one or a few agencies, incomparison with PFM features where manyagencies are involved.
Among the functional features, more scores are
increasing than decreasing, indicating thatreforms are attaining results even in the moredifficult areas.
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Country PFM Systems
overall performance changes
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Change in score Percentage of indicator
dimension ratings
"A" scores maintained 11%Increasing scores 20%
Maintained "B" or "C" scores 21%
Decreasing scores 8%
"D" scores maintained 10%
Incomparable scores
(no scores and other reasons) 12+18%
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Classifying PFM elementsFORMAL FEATURES FUNCTIONAL FEATURES
De jure
Legislation, intention
De facto
Implementation, compliance,
enforcement
Upstream in budget cycle
Planning, budgeting
Downstream in budget cycle
Cash management, accounting reporting
and audit
Actor concentrationCentral finance agencies only Actor deconcentrationMany government entities involved
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Performance change by feature Actor concentration showed much higher
performance improvements than actor
deconcentration
Upstream and downstream elements of the
budget cycle performed at equal rate
De jure elements performed moderately
better than de facto features
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Performance changes by feature
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0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
% increase
% decrease
Based on 33 repeatassessments
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Performance changesnetDe jure / facto Up/Downstream Concentration
Form 28% 21% 33%
Function 16% 21% 11%
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Conclusions:Much more progress on formal than on functional featuresGap is expanding between actor concentration and deconcentration
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Opportunities and Challenges of using
PEFA Data
PEFA indicators are actionable, so cangenerate a list of potential prior actions and
technical assistance needs
But, high PEFA scores dont necessarily meanfunctional performance has improved,
particularly in line ministries, agencies and
subnational units10
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Improving PFM knowledge sharingbetween practitioners and researchers
Networks, communities of practice,
publication in scholarly journals
Help practitioners apply more robust theory,
grounded in previous scholarship
Provide scholars with research opportunitiesleading to actionable recommendations
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Enhancing the role of local researchers
Local researchers have comparative advantage inunderstanding the subtle barriers to institutionalchange in their own countries;
Local researchers had pivotal role in designing andpromoting market-supportive reforms in Chile, China,Indonesia, South Korea, Taiwan
Likewise, they could be critical in designing and
advocating new PFM behaviors that will havetraction.
Need for outreach, mentoring, twinning to identifyand build up local PFM researchers
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