Presentation on theme: "PEFA in Latin America, Seven Years of Implementation"— Presentation transcript:
1PEFA in Latin America, Seven Years of Implementation The Inter-American Development Bank’s ExperienceKatharina Falkner-OlmedoDivision Chief of the Operations Financial Management and Procurement Services OfficeVice Presidency for Countries (VPC)
2Completed and Planned PEFAs in the LAC Region – National Level PEFA IN THE REGIONCompleted and Planned PEFAs in the LAC Region – National LevelARBLBABOBHCHDRECMENIGYHABRVEJASUTTPEPRPNURCOESHOCR26 IDB Borrowing Member CountriesGU85% of IDB countries have completed a PEFA assessment20 Countries – Completed*+2 Countries – In Process36 National PEFAs done in 20 of 26 IDB countries(BH, BL, BO, BR, CO, CR, DR, ES, GU, HA, HO, JA, PY, PE, TT, NI, GY, EC, BA, SU)National not done yet in: Mexico, Venezuela, Argentina and Chile2 Countries in process, meaning the fieldwork completed but report not final (PN, UR)First national PEFA in Panama, UruguayIDB Led 7 PEFAs in 6 Countries (CR, GU, GY, NI, PN, SU)IDB Co-Led 18 PEFAs in 14 Countries (BA, BL, BO, CO, DR, EC, ES, GU, HO, JA, NI, PE, PR, UR)5 Countries - National PEFAs planned for 2013 and 2014* 10 countries have had repeat PEFA assessmentsSource: as of November 19, 2012
3Completed and Planned PEFAs in the LAC Region – Sub-national Level PEFA IN THE REGIONCompleted and Planned PEFAs in the LAC Region – Sub-national LevelARBLBABOBHCHDRECMENIGYHABRVEJASUTTPEPRPNURCOESHOCR26 IDB Borrowing Member CountriesGU5 Countries – PEFAs completed at theSub-national and Local levels1 Country – 2 Sub-national PEFAs planned for 20135 countries with 13 Sub-national PEFAs done in PE, BR, CO, AR, HO1 Local PEFA in Tegucigalpa, Honduras- 2 Sub-national PEFAs planned for 2013 in PeruSource: as of November 19, 2012
4PEFAs in the LAC Region – IDB Use of PEFA Results PEFA IN THE REGIONPEFAs in the LAC Region – IDB Use of PEFA ResultsAs a Donor, PEFAs help the IDB in…Establishing a basis for dialogue with the country (one of several inputs to country strategies).Providing a quick overview of a country’s Public Financial Management Systems.Measuring the progress of Bank-financed reforms through the monitoring of selected indicators.Promoting better coordination/harmonization with other donors.The PEFA has gained importance to the IDB and the Region as a starting point for discussions related to the use of (and reliance on) country PFM systems for IDB-financed projects and PFM reform.
5PEFAs in the LAC Region - IDB Use of PEFA Results PEFA IN THE REGIONPEFAs in the LAC Region - IDB Use of PEFA ResultsIDB use in country strategy, programming and project cyclesPFM ReformProjectsMeasuring resultsProject completionProject designProgrammingCountrystrategyProject executionMonitoring progress and advancesCountry DialogueOther Projects Using PFM SystemsStrengthening and use of Country Systems
6PEFAs in the LAC Region – the IDB’s Experience – Points to Consider PEFA IN THE REGIONPEFAs in the LAC Region – the IDB’s Experience – Points to ConsiderExpectations management and current PEFA frameworkUneducated readers sometimes misinterpret PEFA scope and results thinking that it is a diagnostic reflecting country performance rather than a measurement against indicators and international standards and best practicesDonors often require additional, more in-depth information (from a fiduciary perspective) than what the PEFA provides, to determine the use of country systems, resulting in additional work and diagnostic fatigueEfforts to make the PEFA consistent, straightforward and quantitative, have resulted in: qualitative aspects not always being considered or the methodology not as adaptable to “non-traditional” situations (also relates to point below regarding consultants)Inclusion of ID-19 related to Procurement continues to present challenges for the technical team in coordination, receiving timely data, overlap with MAPS, etc.Translation of implementing guidance into Spanish could be more timely and completeOur Recommendations:PEFA framework –need something more adaptable to unique situations (UR 5-year budget, sub-national, decentralized gov’ts like PN)Need diagnostic to go into greater depth and provide recommendations or next steps toward developing an action plan,remove procurement indicator ID-19,provide more timely, complete and better translations of PEFA guidance into Spanish,more training workshops in Spanish in the Region (not in DC) and addresses more detailed, specific topics
7PEFA IN THE REGIONPEFAs in the LAC Region – the IDB’s Experience – Points to Consider (cont.)Length of the process and sharing preliminary resultsProcess can be too long, resulting in greater costs to the government and donors and a report that becomes quickly outdated.If donor not part of PEFA exercise and report not published, donor may never see the results and need to perform additional work.Consultants and quality of the processSelection of consultants is critical, in terms of applicable technical expertise and the ability to produce a timely and quality report.Our Recommendations:Length of process/sharing results –recommend that gov’ts establish someone with political power to help facilitate providing PEFA team with comments and documents in a timely mannershare results with all donors (not just those involved in the PEFA) confidentially when work substantially completed and reviewedPost interim evaluations of subsystems and indicators on PEFA website or manner to share with all donors confidentiallyConsultants - an agreed-upon (among donors) database of good quality consultants to perform PEFAs, some automatically do more than described in PEFA while others just do the minimum – especially, since don’t have the expertise