Publication: Strengthening Public Financial Management Reform in Pacific Island Countries
Date
2016-08-04
ISSN
Published
2016-08-04
Author(s)
World Bank Group
New Zealand Ministry of Foreign Affairs and Trade
Australian Department of Foreign Affairs and Trade
Overseas Development Institute
Abstract
The Pacific Financial Technical
Assistance Center (PFTAC) produced ‘A Public Financial
Management Roadmap for Forum Island Countries’ (“The
Roadmap”) in 2009 (PFTAC 2010). This document was adopted at
the Forum Economic Ministers’ Meeting (FEMM) of the Pacific
Island Forum as an agreed approach to Public Financial
Management (PFM) reform in Forum Island Countries. The
document established the need for regular Public Expenditure
and Financial Accountability (PEFA) assessments and the
development of PFM reform plans for Pacific countries based
on PEFA assessments and other inputs. Based on international
experience, the document concluded that PFM reforms in
Pacific countries should, among other things: i) reflect
country priorities; ii) take account of country constraints,
including capacity constraints; and iii) have strong country
ownership and take political dimensions into account.Five
years on from the adoption of the Roadmap, this report
examines experiences of PFM reform in two Pacific island
countries in order to inform future improvements.This report
does not assess current PFM systems in case study countries.
Rather, it provides an analysis of previous experiences with
PFM reforms, focusing on the research period 2010-2014. PFM
problems identified in this report may have since been
resolved. The recommendations of the Roadmap reflect that
capacity constraints are a defining feature of government in
Pacific island countries.There is a growing consensus
regarding the importance of prioritization in Pacific PFM
reform.Building on the recommendations of the Roadmap, this
report draws on recent literature regarding ‘problem-driven
approaches’ to further inform analysis of and
recommendations for prioritization of PFM reforms. This
report represents the conclusions of joint work between the
World Bank, the New Zealand Ministry of Foreign Affairs and
Trade, and the Australian Department of Foreign Affairs and
Trade, and the Overseas Development Institute.
Citation
“World Bank Group; New Zealand Ministry of Foreign Affairs and Trade; Australian Department of Foreign Affairs and Trade; Overseas Development Institute. 2016. Strengthening Public Financial Management Reform in Pacific Island Countries. © World Bank, Washington, DC. http://hdl.handle.net/10986/25070 License: CC BY 3.0 IGO.”