1 pefa performance measurement framework case study - ghana presentation by marcelo andrade the...
TRANSCRIPT
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PEFA Performance Measurement FrameworkCase Study - Ghana
Presentation by Marcelo Andrade
The World Bank
November 16, 2006
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Outline
Ghana - Performer with potential
PEFA Assessment - Ghana Context
Do’s and Don’ts Working with Government Working with Donors Working across Networks
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Ghana: Performer with Potential
Open society, political transition in 2000, first in AU to complete Africa Peer Review Mechanism
Social capital, will achieve poverty MDG
Top among peers, but not at its potential
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Structural adjustment since mid-80s. Poverty down, growth sustained, economy same
GPRS1 (2003 – 05) – Growth accelerated, macro stabilization, enrolment up, debt relief
GPRS2 (2006-09) – Stronger focus on growth and structural transformation. Three key pillars:
Private-sector driven growth, Human development,
Governance and Civic responsibility
Country’s goal - Middle-Income status by 2015
Challenges - strategic depth, results-focus, resourcing
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PEFA Assessment: Ghana Context MDBS Partnership since 2003 - Focus on key GPRS actions and
outcomes
Many GPRS1 goals achieved. GBS predictability improved (~$300/year from ten MDBS partners, close to a third of resource flows representing about 10% of GDP), plus debt relief.
Policy Dialogue - Budget centrality, strengthen PFM
HIPC AAP (2001 – 1 out of 15 benchmarks met; 2005 – 8 out of 16 met).
First time - 2006 Budget approved before beginning of FY. Audited 2005 Consolidated Fund accounts submitted to Parliament in June 2006.
External Review of PFM (ERPFM) – annual assessment within MDBS framework. Objectives: developmental - assist Government monitor its PFM reforms. If need be, suggest
options/actions to address challenges. Align with budget process.
fiduciary - inform donors providing budget support about country’s progress in strengthening its PFM systems
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GoG PFM Action Plan adopted in January 2006
PEFA assessment part of 2006 ERPFM
Link to Monitoring of OECD/DAC Paris Declaration on Aid Effectiveness (2005)
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PEFA PMF - Do’s and Don’ts
Working with Government
PMF - not only about rating countries. Measurement leg of Strengthened Approach to PFM reforms. Country-led reform agenda and coordinated donor support program also matter
How to conduct assessment?
(i) external assessment without Govt. involvement - likely to generate antibodies, particularly if assessment is perceived to be linked to continuation of budget support
(ii) self assessment – if insufficiently guided, might lead to unduly rosy ratings
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(iii) Trick in Ghana – middle course. ERPFM team facilitated discussion on the standards underpinning each indicator. Joint assessment on the level of existing performance. Areas in which opinions diverted recorded in the PFM – PR
Focus on PFM systems, not budget policy
PEFA valuable to help prioritise, sequence reform measures. Helped to identify “quick wins”
Score in line with PEFA guidelines and information and documentary evidence
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Triangulation of information, where necessary
Govt. ownership is key. Stick to principle that assessment is value neutral
Plan carefully the exercise and field work
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Working with Donors
PEFA high level indicators - international standards, more demanding than the HIPC-AAP. Need to be understood in the proper context
PEFA assessment – not intended to be used as a scorecard for conditionalities
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Key to quality of PFM PR is team capabilities and how assessment is conducted. Not whether is stand alone or integrated in a broader analytical product
PFM PR - if part of broader analytical product, presentation as a free standing report facilitates use as common information pool
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Working across Networks
Working as a team, key to success
Be responsive to PEFA Secretariat’s quality reviews
PEFA PMF learning curve – key to quality