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James Donovan Public Administration & Financial Management February 7, 2013

Albania and the Swedish Financial Management Authority Financial Management and Control Project Introduction to Sida. James Donovan Public Administration & Financial Management February 7, 2013. Contents. Why does Sida support public administration? What is capacity development ?

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James Donovan Public Administration & Financial Management February 7, 2013

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  1. Albania and the Swedish Financial Management AuthorityFinancial Management and Control ProjectIntroduction to Sida James Donovan Public Administration & Financial Management February 7, 2013

  2. Contents • Whydoes Sida support public administration? • What is capacitydevelopment? • Howdoes Sida support public administration? • Public financial management?

  3. 1. Whydoes Sida support public administration? • Countries need a well-functioning public sector in order to develop • A well-functioning public administration is necessary for a democratic government to achieve its policy goals • A democratic public administration helps guarantee citizens their rights

  4. Stengthening public administration fights corruption • Transparency International and the “national integrity system” – the principle institutions and actors that contribute to integrity, transparency and accountability in a society • UN Convention Against Corruption, European agreements, anti-corruption law, strategies and agencies • → All the institutions in the “national integrity system” & theircooperation • → Transparency & accountability

  5. 3. What is capacitydevelopment? • Capacity is “the conditions that must be in place– knowledge, competence, effective and development-oriented institutions and frameworks – in order to make developmentpossible” • Individuals • Organizations and systems • Formal and informalframeworks • Solutions are context-specific, and thereforerequireanalysis • Sida’s Policy for Capacity Development (2000) and Manual for Capacity Development: MethodsDocument(Sida, 2005)

  6. 4. Howdoes Sida support public administration? • forms of support • an approach to capacitydevelopment in public administration

  7. 4.a. Forms of support • Since 1980s, Sida has worked with overarching public administration systems including human resource management and public financial management • Sida has worked via Swedish public institutions and private consultants

  8. 4.a. Forms of support (2) • Project support • “Twinning” – pairing a foreign agency with its Swedish counterpart • Program support – unearmarked financing for a broader government program, conditional on the achievement of program objectives • Using a country’s public financial management systems • Paris Agreement on Aid Effectiveness (2005) • Accra Agenda for Action (2008)

  9. 4.b. An approach • A government must “own” and leaditsown public administration reform program • Donors should support the same program, coordinated by the government • Build and maintainpolitical support for public administration reform • A holistic view, butthenprioritizedmeasures • A long-termeffort • Difficult to seeimprovements in public administration • Start from the existing situation

  10. 4.b. An approach (2) • Context-specific solutions • Sectors, regional and local administration that deliver public services must be involved in public administration reform • Citizens must be involved in public administration reform • Management of public administration reform requires time and knowledge, but it can be strengthened • Reforms must be sustainable

  11. 5. Public financial management (PFM) • A specialized technical issue but also one of a number of public administration issues • Many of the conclusions from public administration reform are also applicable to PFM reform • PFM reform is generally more successful than other public administration reform

  12. Conditions for successful PFM reform? • Evaluation of Public Financial Management Reform: Burkina Faso, Ghana and Malawi 2001–2010: Final Synthesis Report (African Development Bank, Danida and Sida, 2012) and Public Financial Management Reforms in Post-Conflict Countries: Synthesis Report (World Bank and Overseas Development Institute, 2012)

  13. Sequencing – whatto do first? • “Leap-frogging” – best international standard • Basics first - Allan Schick • Cash accounting before accrual accounting • Make external controls work first before delegating them • Budget for inputs before outputs • Create a predictable annual budget before moving to a multi-annual one, etc. • Platform approach • Be opportunistic

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