The PEFA Program – roll-out, impact and future focus World Bank Fiduciary Forum March 28, 2008 Frans Ronsholt, PEFA Secretariat

Content PEFA background Status on rolling-out Impact on the Strengthened Approach Future focus of the PEFA program

PEFA background Objective: Results orientation in development of PFM systems & harmonization of PFM analytical work Established: in 2001 by WB and six other agencies. Today working in tandem with 25 donor members of OECD-DAC Joint Venture on PFM. Strategy: the Strengthened Approach to supporting PFM reform A country-led reform program A donor-coordinated program of support A common information pool – based on the PFM Performance Measurement Framework launched in June 2005

PEFA Assessments : roll-out trend The workflow of about 15 assessments developed in six months and has remained constant. Whilst 2 donors (WB and EC) have dominated the leading and funding assessments, at least 20 others have participated in various roles. Governments have initiated self-assessments in a number of cases, though still limited.

Geographical distribution

Assessment coverage Very good progress – globally Increasingly used for Sub-National govt guidelines for SN application issued March 2008 High country coverage in many regions BUT …… Few high-income countries assessed Middle-income countries want models to compare with Norway - self-assessment close to completion Few repeat assessments to date needed to track and document performance changes

Ownership and publicity High buy-in from donor agencies 13 agencies have taken a leading role – 10 others involved in reference groups etc Most assessments led by WB (52%) or/and EC (34%) Few assessments are truly government-led and owned Zambia, Bogota, Norway, Bolivia, Nepal, Maharashtra, Belarus Some other cases: Substantial government leadership (Ghana) or initial self-assessment (Nicaragua) Publicity of reports creates a truly common information pool linked to government ownership of assessment

Quality is key to credibility Methodology becoming well known by assessors few methodological mistakes, but still scope for improving extent and transparency of ‘the evidence’ and the analytical summary Ex-ante and ex-post measures to ensure quality Government engagement Full donor collaboration A well planned and managed process Adequate resources, quantitative & qualitative Multi-stakeholder review arrangements for CN and Reports

Impact of PEFA assessments Conclusions from Impact Study 2007 based on 12 country case studies The workflow of about 15 assessments developed in six months and has remained constant. Whilst 2 donors (WB and EC) have dominated the leading and funding assessments, at least 20 others have participated in various roles. Governments have initiated self-assessments in a number of cases, though still limited.

Impact factors at country-level Government ownership and use of the assessment: Active government engagement in the process (but can be constrained by capacity) Assessment clearly intended to assist government (i.e. not seen primarily as a donor requirement for aid) Comprehensive stakeholder involvement from an early stage Donor coordination for and use of the assessment: Strength of existing cooperation among donors Existence of a joint framework for dialogue with government Can the PEFA experience help the development of joint approaches to analytical work among non-traditional collaborators in other areas?

Strategic areas of PEFA focus Maintain/enhance assessment quality Tracking of PFM performance changes through repeat assessments Enhance government engagement in and ownership of the assessments Improve dissemination to partner governments – how? Provide training for government officials to substantially participate in or lead assessments – funding!! Help governments set up reform M&E systems to include PEFA indicators Timely completion and publication of assessment reports to create true common information pool Multi-year plans for PFM analytical work in each country with buy-in from all major stakeholders

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