Good Financial Governance in Africa

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Presentation transcript:

Good Financial Governance in Africa Stakeholder Conference Tunisia 3 November 2010

Session 1. Achievements and Challenges in Good Financial Governance:The Status Report Why joint research? Realising importance of GFG and role of respective mandates in establishing GFG Frustration about the disconnectedness, derailing and slow pace of reforms Recognising importance of the present moment OWNERSHIP

Background Governance and development indicators are improving, but we cannot stop there Need to strengthen positive trend through “disciplined push”  move towards institutionalizing GFG functions Good Financial Governance critical  required for service delivery and growth  needed to mobilise own revenue and grow out of aid  is essential to make development work  requires institutions = basis for our definition

What informed our definition of GFG? Questions: 1. What does GFG look like, when it exists? 2. What is necessary for it to occur? 3. By which outcomes do we know that it is in place? AIM: Get agreement on definition

Good Financial Governance “…is the legitimate use of power and authority in the management of a country’s financial resources with integrity, transparency, accountability, equity and a result orientation to promote development.” Requires effective institutions (formal and informal) Tax / revenue Budget preparation, execution and reporting Financial liabilities External audit Oversight Will result in effective resource mobilisation, sound fiscal management, effective and efficient use of resources and underpins accountable, transparent government Open for Discussion

Discussion

Institutional linkages Progress Challenges Initiatives to reform key institutions Modernisation of fiscal policies Technical gains Public resource management cycle Transparency deficit Impaired accountability relationships Political will Informal institutions Implementation gap Capacity Donor influence and reform sequencing

Recommended Principles for a Declaration on GFG 1. Commit to transparency 2. Restoring accountability institutions 3. Focus on institution building 4. Balancing reforms and capacity growth 5. Autonomy in reform choices