1. Moving Forward in PFM for Sustainable Economic Growth and Development
The Road Ahead
Moving Forward in PFM for Sustainable Economic Growth and Development
Katherine Barraclough, Consultant, World Bank
Public Financial Management Workshop, NOSPA, Vientiane, Lao PDR May 23-26

2. Main Areas of PFM Governance Budget Preparation and Planning
Budget Execution, Accounting and Fiscal Reporting
Debt Management
Audit and Ex-post Control
Revenues

3. Sustainable Growth and Development
Sustainable growth and development depends on:
Capacity development
“the ability of people, institutions and societies to perform functions, solve problems, and set and achieve objectives” (UNDP, 2002)
Need to consider the individual, organisational and institutional level
Developing realistic goals
Need to recognise the challenges, priorities, and constraints

4. Ingredients for Capacity Development in PFM
Source: WBI, “Capacity Enhancement Brief”

5. Sustainable Growth and Development
Appropriate indicators, timetable and targets
Economic growth and development is an incremental process that depends on improvement in capacity over time
Sequencing an action plan
Monitoring and evaluation
Assess qualitative and quantitative progress using appropriate country-level mechanisms
Credibility, accountability and transparency
High level ownership and commitment
Exercise leadership in developing and implementing national development strategies
Commitment to follow through and lead by example

6. Sustainable Growth and Development
Equitable growth
Growth is good for the poor but there is a positive correlation between growth and inequality
Equality of opportunity is complementary to long-term growth
Strengthening controls and eradicating corruption
Institutional restraints on power
Political accountability
Competitive private sector
Public sector management
Civil society participation
Better use of aid (donor coordination)
A government led strategy supported by a coordinated program of work by donors

7. “The long-term starts today”
Moving Forward in PFM
Develop a country-driven strategy
Consider country priorities and institutional capacity
Balance support between the different components of PFM
Success in one area can be limited by lack of progress in another
Present a long-term vision
Develop a holistic economic and social development program, based on broad support
Be results-oriented
Set realistic objectives linked to resources and effective feedback mechanisms
Support a coordinated assistance program
Integrate both donor and government resources
“The long-term starts today”