The PEFA Program – roll-out, impact and future focus

1. The PEFA Program – roll-out, impact and future focus World Bank Fiduciary Forum March 28, 2008 Frans Ronsholt, PEFA Secretariat

2. Content • PEFA background • Status on rolling-out • Impact on the Strengthened Approach • Future focus of the PEFA program

3. PEFA background • Objective: Results orientation in development of PFM systems & harmonization of PFM analytical work • Established: in 2001 by WB and six other agencies. Today working in tandem with 25 donor members of OECD-DAC Joint Venture on PFM. • Strategy: the Strengthened Approach to supporting PFM reform • A country-led reform program • A donor-coordinated program ofsupport • A common information pool– • based on the PFM Performance Measurement Framework launched in June 2005

4. PEFA Assessments : roll-out trend

5. Geographical distribution

6. Assessment coverage • Very good progress – globally • Increasingly used for Sub-National govt • guidelines for SN application issued March 2008 • High country coverage in many regions • BUT …… • Few high-income countries assessed • Middle-income countries want models to compare with • Norway - self-assessment close to completion • Few repeat assessmentsto date • needed to track and document performance changes

7. Ownership and publicity • High buy-in from donor agencies • 13 agencies have taken a leading role – 10 others involved in reference groups etc • Most assessments led by WB (52%) or/and EC (34%) • Few assessments are truly government-led and owned • Zambia, Bogota, Norway, Bolivia, Nepal, Maharashtra, Belarus • Some other cases: Substantial government leadership (Ghana) or initial self-assessment (Nicaragua) • Publicity of reports • creates a truly common information pool • linked to government ownership of assessment

8. Quality is key to credibility • Methodology becoming well known by assessors • few methodological mistakes, but still scope for improving extent and transparency of ‘the evidence’ and the analytical summary • Ex-ante and ex-post measures to ensure quality • Government engagement • Full donor collaboration • Awell planned and managed process • Adequate resources, quantitative & qualitative • Multi-stakeholder review arrangements for CN and Reports

9. Impact of PEFA assessments Conclusions from Impact Study 2007 based on 12 country case studies

10. Impact factors at country-level • Government ownership and use of the assessment: • Active government engagement in the process (but can be constrained by capacity) • Assessment clearly intended to assist government (i.e. not seen primarily as a donor requirement for aid) • Comprehensive stakeholder involvement from an early stage • Donor coordination for and use of the assessment: • Strength of existing cooperation among donors • Existence of a joint framework for dialogue with government

11. Strategic areas of PEFA focus • Maintain/enhance assessment quality • Tracking of PFM performance changes through repeat assessments • Enhance government engagement in and ownership of the assessments • Improve dissemination to partner governments – how? • Provide training for government officials to substantially participate in or lead assessments – funding!! • Help governments set up reform M&E systems to include PEFA indicators • Timely completion and publication of assessment reports to create true common information pool • Multi-year plans for PFM analytical work in each country with buy-in from all major stakeholders

12. Thank You for Your Attention