Handbook Volume IV: Using PEFA to support Public Financial Management Improvement /Piloting Phase-Feedback Appreciated/

PREFACE

Acknowledgments

LIST OF ABBREVIATIONS AND ACRONYMS

1 Introduction: About Volume IV 7

PEFA and the PFM Reform Process 9

Purpose and Objectives of this Guidance 10

2 PEFA and PFM Reform: A Practical Guide 12

Seven stages of Designing, Implementing and Monitoring PEFA Reform 13

Stage 1: Identify PFM strengths and weaknesses 18

Stage 2: Determine the underlying causes of strengths and weaknesses 20

Stage 3: Agree on desired PFM reform outcomes 22

Stage 4: Develop and prioritize PFM reform initiatives 23

Stage 5: Identify potential constraints to reform 27

Stage 6: Implement reforms or reform action plans 32

Stage 7: Monitor and evaluate reform implementation 34

3 Planning for Reform 41

Determining the right approach 43

Further guidance on prioritization and sequencing 44

Managing change 46

Pilot testing the application of volume IV 48

References 49

Annex A 50

Example of a flowchart for reform design 51