NEW BLOG on IMF’s Public Financial Management Blog Site
Strengthening PFM Processes for Enhanced Development Outcomes
Posted by Uzma Ashraf Barton, Adam Kadir, Tim Robinson, Inés Jiménez-Ontiveros, and Joseph McGrann from Nathan Associates
The blog on Strengthening PFM Processes for Enhanced Development Outcomes, published by Nathan Associates on IMF’s PFM Blog Site, shares key findings from the research report, “Analyzing the Link between PFM System Strength and Public Investment Performance”, which is a product of PEFA sponsored Research Competition.
The blog highlights that PFM and Public Investment Management (PIM) systems support investment in key public infrastructure which is an enabler of economic growth, improved service delivery, and good development outcomes. However, how PFM reforms affect public investment and public service delivery is yet to be assessed.
To address this gap in existing literature, the report, using the PEFA framework, analyzed the links between PFM system strength and PIM processes
While the study provides evidence that some PEFA indicators, particularly those that quantitatively capture the improvements in PFM performance, are influential in shaping PIM outcomes, the authors caution against oversimplifying the link between PFM processes and PIM, as doing so may create unrealistic expectations. They recommend employing a holistic approach that measures and interprets reform results contextually. The blog also highlights how the report’s results could help practitioners in multiple ways.
To access the entire text, visit the IMF BLOG SITE.
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