Review of the Public Financial Management Reform Strategy for Pacific Island Countries, 2010-2020
IMF Working Papers, September 4, 2020
Source details
- Canonical URL
- Review of the Public Financial Management Reform Strategy for Pacific Island Countries, 2010-2020
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Bibliographic details
- Authors: Richard I Allen, Majdeline El Rayess, Laura Doherty, Priya Goel
- Published: September 4, 2020
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513556130.001
Summary and scope
- Reviews the Public Financial Management (PFM) reform strategy for 16 Pacific Island Countries (PICs) during the period 2010-2020.
- Strategy endorsed by the finance and economic ministers of the region (FEMM) in 2010.
- Analysis draws on more than 30 PEFA assessments carried out across the region.
- Publication: IMF Working Papers, Working Paper No. 2020/183.
Major findings
- 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.
- Key constraints that have hindered PFM reforms:
- Small size and low capacity of many PICs.
- Poorly designed PFM roadmaps.
- Variable political suppport for reform.
- Vulnerability to natural disasters.
- PFTAC’s advice is highly regarded across the region.
Analysis based on PEFA assessments
- More than 30 PEFA assessments form the empirical basis for the review.
- The paper emphasizes the need for a more granular and targeted approach to PEFA assessments over the next five years.
Policy recommendations
- In the next five years, adopt a more granular and targeted approach to PEFAs.
- PICs should focus on:
- Basic PFM reforms.
- Where capacities allow, more transparent public finances.
- Better management of climate change considerations.
- Better management of public infrastructure.
- Addressing gender inequalities.
- Better oversight and management of state-owned enterprises.
- Perseverance by countries in implementing reforms and leadership by finance ministries are critical.
- PFTAC could consider:
- Alternative modalities of capacity development (CD) delivery.
- Stronger coordination with other development partners.
Subject areas and keywords
- Subject: Budget execution and treasury management; Budget planning and preparation; Fiscal risks; Public Expenditure and Financial Accountability (PEFA); Public financial management (PFM)
- Keywords: Budget execution and treasury management; Budget planning and preparation; CD activity; Fiscal risks; Pacific Islands; Pacific Islands Countries; PEFA; PEFA assessment; PFM advisor; PFM performance; PFM reform; PFM system; PFTAC; Public Expenditure and Financial Accountability (PEFA); public finance management (PFM) reform; WP
Content in this bundle
- Working Paper