Review of the Public Financial Management Reform Strategy for Pacific Island Countries, 2010-2020

Author/Editor:

Richard I Allen ; Majdeline El Rayess ; Laura Doherty ; Priya Goel

Publication Date:

September 4, 2020

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

This paper reviews the Public Financial Management (PFM) reform strategy for 16 Pacific Island Countries (PICs) during the period 2010-2020. The strategy was endorsed by the finance and economic ministers of the region (FEMM) in 2010. The paper analyzes more than 30 PEFA assessments carried out across the region. The region shares the generally slow pace of PFM reform that is also a feature of most developing countries. Some PICs have improved their PFM performance significantly, while others have done less well. PFM reforms have suffered from the small size and low capacity of many PICs, poorly designed PFM roadmaps, variable political support for reform, and vulnerability to natural disasters. The paper recommends that in the next five years, there should be a more granular and targeted approach to PEFAs. PICs should focus on basic PFM reforms and (where capacities allow) more transparent public finances, as well as better management of climate change considerations, public infrastructure, gender inequalities, and state-owned enterprises. Perseverance by countries in implementing reforms and leadership by finance ministries are critical. PFTAC’s advice is highly regarded across the region, and it could consider alternative modalities of CD delivery and stronger coordination with other development partners.

Series:

Working Paper No. 20/183

Frequency:

regular

English

Publication Date:

September 4, 2020

ISBN/ISSN:

9781513556130/1018-5941

Stock No:

WPIEA2020183

Format:

Paper

Pages:

35

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