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Learn how Sida supports public administration by strengthening governance, fighting corruption, and promoting capacity development. Discover the importance of public financial management reforms and the role of citizens in shaping governance.
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Albania and the Swedish Financial Management AuthorityFinancial Management and Control ProjectIntroduction to Sida James Donovan Public Administration & Financial Management February 7, 2013
Contents • Whydoes Sida support public administration? • What is capacitydevelopment? • Howdoes Sida support public administration? • Public financial management?
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
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
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)
4. Howdoes Sida support public administration? • forms of support • an approach to capacitydevelopment in public administration
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
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)
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
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
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
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)
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