Title PEFA, Public Financial Management, and Good Governance
Subtitle International Development in Focus
Author Jens Kromann Kristensen, Martin Bowen, Cathal Long, Shakira Mustapha, Urška Zrinski
ISBN 9781464814662
List price USD 39.95
Price outside India Available on Request
Original price
Binding Paperback
No of pages 170
Book size 216 x 279 mm
Publishing year 2019
Original publisher The World Bank
Published in India by .
Exclusive distributors Viva Books Private Limited
Sales territory India, Sri Lanka, Bangladesh, Pakistan, Nepal, .
Status New Arrival
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Description:

This project, based on the Public Expenditure and Financial Accountability (PEFA) data set, researched how PEFA can be used to shape policy development in public financial management (PFM) and other major relevant policy areas such as anticorruption, revenue mobilization, political economy analysis, and fragile states. The report explores what shapes the PFM system in low- and middle income countries by examining the relationship between political institutions and the quality of the PFM system. Although the report finds some evidence that multiple political parties in control of the legislature is associated with better PFM performance, the report finds the need to further refine and test the theories on the relationship between political institutions and PFM.

The report addresses the question of the outcomes of PFM systems, distinguishing between fragile and nonfragile states. It finds that better PFM performance is associated with more reliable budgets in terms of expenditure composition in fragile states, but not aggregate budget credibility. Moreover, in contrast to existing studies, it finds no evidence that PFM quality matters for deficit and debt ratios, irrespective of whether a country is fragile or not.

The report also explores the relationship between perceptions of corruption and PFM performance. It finds strong evidence of a relationship between better PFM performance and improvements in perceptions of corruption. It also finds that PFM reforms associated with better controls have a stronger relationship with improvements in perceptions of corruption compared to PFM reforms associated with more transparency.

The last chapter looks at the relationship between PEFA indicators for revenue administration and domestic resource mobilization. It focuses on the credible use of penalties for noncompliance as a proxy for the type of political commitment required to improve tax performance. The analysis shows that countries that credibly enforce penalties for noncompliance collect more taxes on average.


Contents:

Preface

Acknowledgments

About PEFA

About the Authors and Editors

Summary

Abbreviations

Chapter 1. Introduction: What Is PFM and Why Is It Important? • Importance of PFM • Research contribution to discussions on PFM performance and issues in PFM reform • Note • References

Chapter 2. Measuring PFM Performance through PEFA: Approach and Methodology • The PEFA framework and data set • Issues in quantifying and analyzing PFM performance • Notes • References

Chapter 3. Political Institutions and PFM Performance (Shakira Mustapha) • Introduction • Literature review • Data and analysis • Estimation approach • Results • Discussion • Annex 3A Statistical tables • Notes • References

Chapter 4. Budget Credibility, Fiscal Outcomes, and PFM Performance in Fragile and Nonfragile Countries (Shakira Mustapha) • Introduction • Literature review • Data and analysis • Estimation approach • Results • Discussion • Next steps • Annex 4A Cross-sectional sample of countries by income group and definition of fragility • Annex 4B Robustness check • Annex 4C Regression results for disaggregated public financial management (PFM) system • Notes • References

Chapter 5. PFM and Perceptions of Corruption (Cathal Long) • Introduction • Literature review • Data and analysis • Estimation approach • Results • Discussion • Annex 5A PEFA indicators: 2011 framework • Annex 5B Estimation samples • Annex 5C Robustness checks • Notes • References

Chapter 6. Revenue Administration Performance and Domestic Resource Mobilization (Gundula Löffler, Cathal Long, and Zac Mills) • Introduction • Literature review • Data and analysis • Estimation approach • Results • Discussion • Annex 6A Sample of countries • Annex 6B Cross-sectional estimation • Notes • References

Box

Figures

Tables


About the Editors:

Martin Bowen is a Senior Public Sector Specialist at the Public Expenditure and Financial Accountability (PEFA) Secretariat. He has extensive experience in public financial management reform in more than 30 countries with various international organizations including the United Kingdom’s Department for International Development, European Union, International Monetary Fund, U.S. Agency for International Development, and the World Bank, on long-term and short-term assignments. Martin also worked for 15 years with the Australian Department of Finance. He has a bachelor’s degree in economics from the University of Leeds, United Kingdom, and a master’s degree in international and community development from Deakin University, Australia.

Jens Kromann Kristensen is the Head of the Public Expenditure and Financial Accountability (PEFA) Secretariat. He has worked on a broad range of public financial management (PFM) reforms at the Danish Ministry of Finance, KPMG Risk Advisory Services, the Organisation for Economic Co-operation and Development (OECD), and the World Bank. He has experience from East Asia, Europe, and Sub-Saharan Africa working on PFM in high-, middle-, and low-income countries and in fragile and conflict-affected areas. He has a bachelor’s degree and a master’s degree in political science from the University of Copenhagen.

Gundula Löffler is a Senior Research Officer, Public Finance and Institutions, Overseas Development Institute (ODI). She specializes in institutional and governance reforms in low- and middle-income countries in the areas of taxation, fiscal decentralization, and intergovernmental relations. Prior to joining ODI, she was a researcher and consultant on fiscal decentralization and local taxation in Rwanda and other African countries. She also worked as a development adviser for the Gesellschaft für Technische Zusammenarbeit in the Arab Republic of Egypt, Germany, and the Syrian Arab Republic on participatory development, decentralization, urban management, and slum upgrading. She holds a PhD in public administration and development from New York University Wagner.

Cathal Long is a Research Fellow, Public Finance and Institutions, Overseas Development Institute (ODI). His research and advisory work focus on public finance reforms and service delivery in low-income countries, including Nepal, South Sudan, and Uganda. Before joining ODI, he was an ODI Fellow in the Ministry of Economic Planning and Development in Swaziland and previously worked in public sector accounting and audit in Ireland and the United Kingdom. He holds a master’s degree in economics from University College Dublin and is an associate member of the Chartered Institute of Management Accountants.

Zac Mills is a Research Associate, Public Finance and Institutions, Overseas Development Institute (ODI). He specializes in public sector reforms and performance management tools to strengthen the links between planning, budgeting, and results. He previously worked eight years at the World Bank, most recently as a Governance Specialist in its Africa Region. He holds a master’s degree in economics from the University of Sussex and a master’s degree in international affairs from Carleton University.

Shakira Mustapha is a Research Fellow, Public Finance and Institutions, Overseas Development Institute (ODI). Her research interests cover public administration and development finance. Previously she worked with the government of Trinidad and Tobago in the Ministry of Trade and Industry as well as the Ministry of Planning and Sustainable Development on issues concerning economic diversification, and with various reform programs such as social safety nets and public financial management. She holds a master’s degree in public and economic policy from the London School of Economics.

Urška Zrinski is Public Sector Specialist at the Public Expenditure and Financial Accountability (PEFA) Secretariat. She joined the Secretariat in October 2015 and has been working on the upgraded PEFA 2016 framework. She has been leading the Secretariat’s efforts in promoting the use of PEFA to collect information on gender-responsive budgeting practices and is anchoring the Secretariat’s research initiatives. Prior to joining the Secretariat, she was Chief Program Officer at the Center of Excellence in Finance, leading knowledge and learning programs for public finance officials in Southeast Europe. Urška holds a PhD from the University of Ljubljana and a master’s degree from King’s College London, University of London. Her research interests include on international development cooperation effectiveness, aid modalities, and the quality and use of public financial management systems.


Target Audience:

This book will be useful to people interested in public financial management and how Public Expenditure and Financial Accountability (PEFA) can be used to shape policy various policy areas such as anticorruption, revenue mobilization, political economy analysis, and fragile states.

 
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