PEFA The Emerging Agenda

1. PEFAThe Emerging Agenda Repeat Assessments Increased Publication From Diagnosis to Action Jim Brumby, PRMPS Fiduciary Forum, 2008

2. Pillars of the strengthened approach Repeats Tracking progress through time Action Ensuring that diagnosis is at the heart of country owned action plan Creating a common pool of information Ensuring that comparable information is available PEFA steering committee giving thought to best role

3. Repeat assessments • PEFA generally recommends 3-5 years • But of 15 undertaken in 2005, 6 now in planned or ongoing exercise • Some countries may prefer self-conducted almost annual reassessments, with periodic attestations by external parties • Consistent with strengthened approach • 1 completed repeat done (Mozambique) • Sound interval (05-07); good breadth of input; comparability of ratings • 4 repeats already in progress (Afghanistan, Tanzania, Madagascar, Malawi) • Drafts not always including a link to previous rating • 7 repeats planned for 2008-09 (Barbados, Grenada, Kenya, Lao PDR, Trinidad, Uganda, Zambia) • Country teams encouraged for pro-active engagement with countries

4. Repeats: managing risks • Issues to address • Overarching objective; country ownership • More own reviews • Team composition and incentives • Some common membership may be desirable • Watch for desire to check reforms • Or for first time assessments to retrofit an assessment • New information • New information suggest old judgments were wrong • Quality improvements • Whether to correct for error • Publication expectations • Stakeholder engagements • Ensure many sided and sighted view of system Overall, many similar issues to first time, but more complex

5. Publication creates a common pool • Status as of now: • Recent progress made • 14 publicly available in November 2007 • 29 publicly available March 2008 • Total PEFA’s ‘completed’ • 10 not likely to be published ever, whether or not really finished • Combination of country and assessor issues • 52 countries finalized, including 3 not likely to be published ever • Total of 20 in balance • Approach needs to address stock and flow: • Managing down the stock of finished but not published PEFAs: • Status of each and every PEFA; responsibility of TTLs • Ensuring that the flow adds little to the stock: • Task teams to make clear expectations at outset that it is a standard procedure for publication • Country needs to communicate a dissenting view • Requires no surprises in the conduct of the PEFA assessment

6. Action plans • Movement from diagnosis to action is fundamental to PEFA’s success • For development and fiduciary reasons • But in 2006 • All reports 45% • Integrated products 100% • PFM-PR’s 23% - “No PFM-PR presents a thorough and systematic narrative exposing coherent recommendations.” • PEFA impact study: only 6 of 12 said aligned country reform program • Country is in the driver’s seat • Needs space and time to develop its own action plan • Needs to focus on what is important • Prioritized actions • Reflect on sequencing • May need assistance to implement and to monitor the plan • Potential role for PEFA updates • Catalyst for action may come from other source (crisis; new govt; donors etc)

7. Conclusion • Period of consolidation, but risks need to be managed • New assessments • Greater coverage of middle and high income countries • Removal of any stigma • Geographic spread • Repeat assessments • To deliver on the objective of tracking progress • Goal of 80% repeats in 3-5 years? • Role of (verified) self-assessments • Reinforcement of reform actions • Increasing comfort with publication • Q:80% published within one year of completion • Enhancing quality • Q: Recognition by all DAC members of PEFA framework • Carefully manage any reconsideration of basic framework • Active country engagement