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Better Aid Managing Development Resources: The Use of Country Systems in Public Financial Management (Complete Edition ‐ ISBN 9789264056169)

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Abstract:

Successful development depends in large part on the efficiency, integrity and effectiveness with which the state raises, manages and expends public resources. Improving the rules and institutions governing these activities should be a major component, therefore, of any development approach. Given that strengthening Public Financial Management (PFM) is at the heart of the Millennium Development Goals, and good governance more generally, the Paris Declaration (2005) seeks to promote joint efforts in this area between donors and partner countries. In particular, partner authorities committed to strengthening their PFM systems and donors committed to using those systems to the maximum extent possible. The Joint Venture on Public Financial Management, bringing together donors and partner authorities, was created to facilitate the implementation of the Paris Declaration as it relates to PFM.

As part of the Joint Venture's ongoing work in this area, this report takes stock of progress and provides recommendations on how best to facilitate achieving the 2010 targets set out in the Paris Declaration. It:

‐ Sets out the benefits of and rationale for using country systems,

‐ Assesses progress in meeting the Paris Declaration targets,

‐ Reviews the landscape of PFM reforms in partner countries,

‐ Looks at drivers of successful PFM reforms.

‐ Examines the factors that influence decisions to use country PFM systems, focusing on the perceived risks and their assessment and management,

‐ Describes the PEFA (Public Expenditure and Financial Accountability) assessment, which provides information on the quality of a country's PFM system.

This report shows that now, as perhaps never before, partner countries and donors must strive to build mutual trust and work together in a true partnership for results.v

Document Type: Review Article

Publication date: March 1, 2009

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