1. SARFM: Lessons Learned in the Design and Implementation of Local Governance Projects in South Asia
Presentation by
V. Rama Krishnan,
Sr. FMS, The World Bank, Washington DC and Coordinator, Local Government Group, SARFM

2. The Context
SAR Strategy : Strengthen Decentralization and Local Governance
Increasing Bank engagement through AAAs and a rapidly expanding lending portfolio
Seven “local governance” projects, lending pipeline of $850million

3. Role of Financial Management in Local Governance Projects
Strengthening Public Financial Management systems are key to local governance
Fiduciary issues relating to flow of funds, expenditure and oversight at sub national level
Challenges to SARFM : institutional strengthening and effective risk mitigation

4. Reliance on country systems (Bangladesh, Balochistan)
SARFM Experiences in the Design and Implementation of Local Governance Projects
Linkages between the substantial and fiduciary components (Bangladesh LGSP)
Reliance on country systems (Bangladesh, Balochistan)
Scope for innovation (Local Govt Audit Strategy for the CAG in Bangladesh)
Implementation : a challenging task (Karnataka)

5. Lessons Learned
Identify the roles of the various players in the intergovernmental financial administration framework
Clear identification of the problem
Build up the Basics
PFM processes to be linked to the Accountability Framework
Strategic approach to PFM issues of local governments

6. Conclusion
The way forward
Issues
Questions