1. Good Financial Governance in Africa
Stakeholder Conference
Tunisia
3 November 2010

2. 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

3. 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

4. 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

5. 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

6. Discussion

7. 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

8. 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