CMI
A more comprehensive approach increases the importance of conducting joint recipient-donor diagnoses and building a common understanding of project goals. Without a strong interest in changing systems and improving components from the recipient, projects tend be handicapped from the start. Support the education and training of economists and accountants The long view is particularly important when the supply of local professionals (particularly economists and accountants) has to be increased. In parallel with the educational measures, support to short-term job-oriented training will also be necessary. It is necessary not only to equip staff with the necessary academic background. Considerable job experience and good track records are essential for individuals who take on the very serious responsibilities in PFM. It will also be necessary to build up capacity for capacity building. Considering the tenuous situation in many countries today, 15 – 25 years for building up a strong professional cadre of accountants and economists is not an overestimate. Improve human resource management systems Human resource management systems in the public sector are often deficient and rigid. There is little flexibility in giving particular incentives to categories of staff that are either in short supply or seen as particularly important. In many cases, capacity building efforts in the public sector do not improve the bureaucracy, simply because those civil servants who have been taking part in training leave for higher paid jobs in the parastatals, central banks and the private sector as soon as they have completed their training. If government attaches great importance to attracting competent personnel for the various components of PFM, incentives (like salaries and career opportunities) have to be set to attract the right calibre of personnel. A number of donors have tried to run supplementary salary schemes for particularly important groups in PFM, with varying success. The argument against such schemes is that they are not sustainable, but nor are a good many measures and projects implemented for “development”. Institutionalise the dialogue between recipient agencies and donor agencies Joint (recipient/donor) analysis has been stressed as an important ingredient of successful PFM capacity building projects during the diagnostic stage. There is a good case for keeping the same close relationship also during the implementation stage. In particular an emphasis on joint learning about best practices in designing and managing organisational development processes is likely to yield results. Studies and research may often play an important role in spurring the dialogue. Stick to the “development” perspective HIPC and budget support have put PFM in focus. In a poverty reduction perspective, the results on the ground are all important. Currently, the Ministry of Finance perspective, however, often steers interventions to improve PFM. This may have been correct during a period when macroeconomic imbalances were acute. With better macroeconomic management, the sector perspective (the PFM needs at sector level) has to guide the development of PFM to gain a
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