Framework for Developing the Joint Financial Management-Procurement Strategy Peter Harrold Director, OPCOS Fiduciary Forum March 25, 2008

Context—the Vision Inclusive and Sustainable Development for Poverty Reduction Inclusive and Sustainable Development for Poverty Reduction Six Themes Six Themes Help overcome poverty and spur sustainable growth in the poorest countriesHelp overcome poverty and spur sustainable growth in the poorest countries Address the challenges of fragile and conflict-affected statesAddress the challenges of fragile and conflict-affected states A competitive menu of “development solutions” for Middle-Income Countries (MICs)A competitive menu of “development solutions” for Middle-Income Countries (MICs) Play a more active role in global and regional public goodsPlay a more active role in global and regional public goods Support those advancing development and opportunity in the Arab worldSupport those advancing development and opportunity in the Arab world Foster a “knowledge and learning” agenda across the BankFoster a “knowledge and learning” agenda across the Bank

Cross-Cutting Challenge: Assisting Countries in Working toward Good Governance and Anticorruption Assisting Countries in Working toward Good Governance and Anticorruption GAC strategy and implementationGAC strategy and implementation Lessons from the India DIRLessons from the India DIR Reducing the Non-financial costs of doing business with the World Bank Reducing the Non-financial costs of doing business with the World Bank

Relevance of FM and PR for the Bank Strategy Capable public sector management and public financial management required for delivery of the Bank strategy Capable public sector management and public financial management required for delivery of the Bank strategy Able public sector management at the heart of achieving the MDGs in partner countries Able public sector management at the heart of achieving the MDGs in partner countries Effective procurement and financial management are essential components of country public financial management and public sector management systems Effective procurement and financial management are essential components of country public financial management and public sector management systems

Relevance of the Bank Strategy and Themes for PR-FM Strategy Better customization of FM and PR support, based on country needs Better customization of FM and PR support, based on country needs The poorest countriesThe poorest countries Fragile StatesFragile States MICsMICs Global and regional public goods—PR and FM input into complex financing mechanisms Global and regional public goods—PR and FM input into complex financing mechanisms Knowledge and learning—especially relevant Knowledge and learning—especially relevant GAC implementation GAC implementation

Putting Country Systems at the Center Tension between two apparently conflicting roles of FM and PR: Tension between two apparently conflicting roles of FM and PR: Reasonable assurance on the use of Bank- provided resourcesReasonable assurance on the use of Bank- provided resources Support for country FM and PR institutions as part of effective public financial management systems in partner countriesSupport for country FM and PR institutions as part of effective public financial management systems in partner countries The answer—the best and most effective work on reasonable assurance helps countries build their institutions—India DIR response The answer—the best and most effective work on reasonable assurance helps countries build their institutions—India DIR response

Challenges Effectively working as teams and getting out of PR and FM silos Effectively working as teams and getting out of PR and FM silos Fitting FM-PR Strategy into an overall public financial management support strategy with PREM—and marketing that strategy Fitting FM-PR Strategy into an overall public financial management support strategy with PREM—and marketing that strategy Getting away from one size fits all to true risk-based customization in country support and project support Getting away from one size fits all to true risk-based customization in country support and project support

Collaborative Strategy Development Need your inputs, ideas, reactions Need your inputs, ideas, reactions Now, if you have questions or comments Now, if you have questions or comments Not your last chance; as the process rolls out: Not your last chance; as the process rolls out: Will come back for more input—joint consultations and discussions by RegionWill come back for more input—joint consultations and discussions by Region Will set up a website for staff inputs, ideas, and commentsWill set up a website for staff inputs, ideas, and comments