Linking PFM dimensions to development priorities
- Bryn Welham, Philipp Krause & Edward Hedger
- May 2013
- Overseas Developemnt Institute (ODI)
In some approaches to discussion and practice of Public Financial Management (PFM) reform in developing countries, reforms are inspired by a comparison of current systems, as compared to an ideal state, often only found in wealthy countries. Reform programmes are therefore guided by an assessment of the gap between best practice and actual behaviour. However, for governments facing severe and prolonged capacity constraints, it may be unrealistic to expect achievement of ‘best practice’ – or anything close to it – in the foreseeable future. An alternative approach would therefore be to focus on the specific development objectives governments are trying to achieve and their relationship to PFM reform. The findings of this analysis can then be used to prioritise certain PFM functions above others, and use this prioritisation to inform the design of a reform programme in a capacity-constrained environment.
