Publication:
Strengthening Public Financial Management : Exploring Drivers and Effects

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dc.contributor.authorFritz, Verena
dc.contributor.authorSweet, Stephanie
dc.contributor.authorVerhoeven, Marijn
dc.date.accessioned2014-12-03T20:08:00Z
dc.date.available2014-12-03T20:08:00Z
dc.date.issued2014-11
dc.description.abstractThis paper explores two relationships, first between country characteristics and the quality of public financial management ('drivers'), and second between the quality of public financial management systems and expected outcomes ('effects'). On the influence of country characteristics, the paper investigates economic factors (income level, growth, and resource dependency), population size, levels and sources of revenue, and three macro-political characteristics -- political stability, regime type, and the presence of programmatic parties. These characteristics jointly explain about 40 percent of the variation in the quality of public financial management across countries. Furthermore, first-difference analysis suggests that countries with lower initial public financial management quality improve at a higher rate over time. This implies that structural factors set the scene for the likelihood of better or worse performance, but also that there is substantial variation among countries sharing certain characteristics and reform opportunities exist even in unfavorable environments. Methodologically, a key limitation is that the direction of causality cannot be fully addressed with the types of data available. On the effects of the performance of public financial management, the paper finds evidence that stronger performance results in better budget credibility, but not in lower deficits. Furthermore, there is no clear evidence regarding operational efficiency. The observed disconnect could be caused by missing complementary state capacities, measurement problems, or other issues, which need to be explored further. Overall, the findings are consistent with the assumption that stakeholder incentives and constellations matter and that reform approaches combining good technical calibration and political economy considerations are likely to influence success in strengthening public financial management.en
dc.identifierhttp://documents.worldbank.org/curated/en/2014/11/20346313/strengthening-public-financial-management-exploring-drivers-effects
dc.identifier.doi10.1596/1813-9450-7084
dc.identifier.urihttps://hdl.handle.net/10986/20631
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank Group, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 7084
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTABILITY RELATIONSHIPS
dc.subjectACCOUNTING
dc.subjectAGGREGATE BUDGET
dc.subjectAGGREGATE DEMAND
dc.subjectAGGREGATE DISCIPLINE
dc.subjectAGGREGATE EXPENDITURE
dc.subjectAGGREGATE EXPENDITURES
dc.subjectAGGREGATE FISCAL
dc.subjectAGGREGATE FISCAL DISCIPLINE
dc.subjectAID DEPENDENCY
dc.subjectALLOCATION
dc.subjectALLOCATION OF FUNDS
dc.subjectANNUAL DEFICIT
dc.subjectANNUAL RATE
dc.subjectBUDGET ALLOCATIONS
dc.subjectBUDGET CREDIBILITY
dc.subjectBUDGET EXECUTION
dc.subjectBUDGET IMPLEMENTATION
dc.subjectBUDGET PLANNING
dc.subjectBUDGET POLICY
dc.subjectBUDGET SYSTEMS
dc.subjectBUDGETARY PROCESS
dc.subjectBUDGETING
dc.subjectBUDGETING PROCESS
dc.subjectCHECKS
dc.subjectCIVIL LIBERTIES
dc.subjectCOMPOSITION OF EXPENDITURES
dc.subjectCOST EFFECTIVENESS
dc.subjectCOST-EFFECTIVENESS
dc.subjectCOUNTRY ANALYSIS
dc.subjectCOUNTRY COMPARISONS
dc.subjectCOUNTRY DATA
dc.subjectCOUNTRY EXPERIENCE
dc.subjectCREDIBLE BUDGET
dc.subjectDATA ANALYSIS
dc.subjectDEBT
dc.subjectDEBT RELIEF
dc.subjectDEBT SERVICE
dc.subjectDEBT SERVICE PAYMENTS
dc.subjectDECISION MAKING
dc.subjectDECISION-MAKERS
dc.subjectDEMOCRATIC GOVERNMENTS
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT ASSISTANCE
dc.subjectDEVELOPMENT POLICY
dc.subjectDIAGNOSTIC TOOL
dc.subjectDOMESTIC REVENUE
dc.subjectDONOR AGENCIES
dc.subjectDUMMY VARIABLE
dc.subjectDUMMY VARIABLES
dc.subjectECONOMETRIC ANALYSIS
dc.subjectECONOMETRIC ASSESSMENT
dc.subjectECONOMETRICS
dc.subjectECONOMIC CONDITIONS
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC INSTABILITY
dc.subjectECONOMIC OUTLOOK
dc.subjectEDUCATION EXPENDITURES
dc.subjectEFFICIENCY OF GOVERNMENT EXPENDITURE
dc.subjectEXPENDITURE TRACKING SURVEYS
dc.subjectEXTERNAL AUDIT
dc.subjectFINANCIAL ACCOUNTABILITY
dc.subjectFINANCIAL CRISIS
dc.subjectFISCAL AFFAIRS
dc.subjectFISCAL DEFICITS
dc.subjectFISCAL DISCIPLINE
dc.subjectFISCAL FRAMEWORKS
dc.subjectFISCAL OUTCOMES
dc.subjectFISCAL PERFORMANCE
dc.subjectFISCAL POLICY
dc.subjectFISCAL PROGRAM
dc.subjectFISCAL REPORTING
dc.subjectFISCAL STANCE
dc.subjectFISCAL YEARS
dc.subjectGDP
dc.subjectGDP PER CAPITA
dc.subjectGOVERNMENT PERFORMANCE
dc.subjectGOVERNMENT SPENDING
dc.subjectGROWTH RATE
dc.subjectHEALTH EXPENDITURE
dc.subjectHEALTH SECTOR
dc.subjectHEALTH SPENDING
dc.subjectHIPC
dc.subjectHOLDING
dc.subjectINCOME GROUPS
dc.subjectINCOME LEVEL
dc.subjectINCOME LEVELS
dc.subjectINCOME TAX
dc.subjectINSTITUTIONAL DEVELOPMENT
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL FINANCIAL CRISIS
dc.subjectINVESTING
dc.subjectMACRO-ECONOMIC POLICIES
dc.subjectMACROECONOMIC FRAMEWORK
dc.subjectMEDIUM-TERM EXPENDITURE
dc.subjectMEDIUM-TERM EXPENDITURE FRAMEWORKS
dc.subjectMIDDLE INCOME COUNTRIES
dc.subjectMONETARY FUND
dc.subjectNATIONAL INCOME
dc.subjectNATIONAL POLICY
dc.subjectNATIONAL POLICY PRIORITIES
dc.subjectNATURAL RESOURCES
dc.subjectOFFICIAL DEVELOPMENT ASSISTANCE
dc.subjectOPERATIONAL EFFICIENCY
dc.subjectOVERHEAD COST
dc.subjectPER CAPITA INCOME
dc.subjectPER CAPITA INCOMES
dc.subjectPERFORMANCE OF GOVERNMENT
dc.subjectPOLITICAL ECONOMY
dc.subjectPOLITICAL STABILITY
dc.subjectPOLITICIANS
dc.subjectPROGRAMS
dc.subjectPUBLIC
dc.subjectPUBLIC EXPENDITURE
dc.subjectPUBLIC EXPENDITURE REVIEWS
dc.subjectPUBLIC EXPENDITURE TRACKING
dc.subjectPUBLIC FINANCE
dc.subjectPUBLIC FINANCIAL MANAGEMENT
dc.subjectPUBLIC FINANCIAL MANAGEMENT SYSTEMS
dc.subjectPUBLIC FUNDS
dc.subjectPUBLIC RESOURCES
dc.subjectPUBLIC SECTOR
dc.subjectPUBLIC SECTOR PERFORMANCE
dc.subjectPUBLIC SECTOR SPECIALIST
dc.subjectPUBLIC SERVICE
dc.subjectPUBLIC SERVICE DELIVERY
dc.subjectPUBLIC SERVICES
dc.subjectPURCHASING POWER
dc.subjectREAL GDP
dc.subjectREALLOCATIONS
dc.subjectREFORM APPROACHES
dc.subjectREFORM STRATEGIES
dc.subjectRESOURCE AVAILABILITY
dc.subjectRETURN
dc.subjectRETURNS
dc.subjectREVENUE VOLATILITY
dc.subjectSECTORAL ALLOCATIONS
dc.subjectSECTORAL BUDGET
dc.subjectSECTORAL EXPENDITURE
dc.subjectSOCIAL WELFARE
dc.subjectSUSTAINABLE FISCAL BALANCE
dc.subjectTAX ADMINISTRATION
dc.subjectTAX POLICY
dc.subjectTAX REVENUE
dc.subjectTERRORISM
dc.subjectTOTAL EXPENDITURE
dc.subjectTOTAL REVENUE
dc.subjectTRANSPARENCY
dc.subjectUNCERTAINTY
dc.subjectWEALTH
dc.titleStrengthening Public Financial Management : Exploring Drivers and Effectsen
dspace.entity.typePublication
okr.crossref.titleStrengthening Public Financial Management: Exploring Drivers and Effects
okr.date.disclosure2014-11-15
okr.date.doiregistration2025-04-10T09:25:16.809332Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2014/11/20346313/strengthening-public-financial-management-exploring-drivers-effects
okr.globalpracticeGovernance
okr.guid349071468151787835
okr.identifier.doi10.1596/1813-9450-7084
okr.identifier.externaldocumentum000158349_20141104092115
okr.identifier.internaldocumentum20346313
okr.identifier.reportWPS7084
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2014/11/04/000158349_20141104092115/Rendered/PDF/WPS7084.pdfen
okr.topicCountry Strategy and Performance
okr.topicPublic Sector Expenditure Policy
okr.topicEconomic Theory and Research
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicPublic Sector Economics
okr.topicPublic Sector Development
okr.topicMacroeconomics and Economic Growth
okr.unitGovernance Global Practice Group
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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