Download New Partnership Frameworks At Country Level

PEFA
Performance Measurement
Framework
Case Study - Ghana
Presentation by Marcelo Andrade
The World Bank
January 18, 2007
1
Outline

Ghana - Performer with potential

PEFA Assessment - Ghana Context

Do’s and Don’ts



2
Working with Government
Working with Donors
Working across Networks
Ghana: Performer with Potential

Open society, political transition in 2000, first in
AU to complete Africa Peer Review Mechanism

Social capital, will achieve poverty MDG

Top among peers, but not at its potential
3
 Structural adjustment since mid-80s.
Poverty down,
growth sustained, economy same

GPRS1 (2003 – 05) – Growth accelerated, macro
stabilization, enrolment up, debt relief

GPRS2 (2006-09) – Stronger focus on growth and
structural transformation. Three key pillars:
Private-sector driven growth, Human development,
Governance and Civic responsibility

Country’s goal - Middle-Income status by 2015

Challenges - strategic depth, results-focus, resourcing
4
PEFA Assessment: Ghana Context
MDBS Partnership since 2003 - Focus on key GPRS actions and
outcomes


Many GPRS1 goals achieved. GBS predictability improved (~$300/year from ten MDBS
partners, close to a third of resource flows representing about 10% of GDP), plus debt relief.
Policy Dialogue - Budget centrality, strengthen PFM



HIPC AAP (2001 – 1 out of 15 benchmarks met; 2005 – 8 out of 16 met).
First time - 2006 Budget approved before beginning of FY. Audited 2005 Consolidated Fund
accounts submitted to Parliament in June 2006.
External Review of PFM (ERPFM) – annual assessment within MDBS
framework. Objectives:



5
developmental - assist Government monitor its PFM reforms. If need be, suggest
options/actions to address challenges. Align with budget process.
fiduciary - inform donors providing budget support about country’s progress in strengthening
its PFM systems

GoG PFM Action Plan adopted in January 2006

PEFA assessment part of 2006 ERPFM

Link to Monitoring of OECD/DAC Paris Declaration on Aid
Effectiveness (2005)
6
PEFA PMF - Do’s and Don’ts
Working with Government


PMF - not only about rating countries. Measurement leg of
Strengthened Approach to PFM reforms. Country-led
reform agenda and coordinated donor support program
also matter

How to conduct assessment?


7
(i) external assessment without Govt. involvement - likely to generate
antibodies, particularly if assessment is perceived to be linked to
continuation of budget support
(ii) self assessment – if insufficiently guided, might lead to unduly
rosy ratings

(iii) Trick in Ghana – middle course. ERPFM team facilitated
discussion on the standards underpinning each indicator. Joint
assessment on the level of existing performance. Areas in
which opinions diverted recorded in the PFM – PR

Focus on PFM systems, not budget policy

PEFA valuable to help prioritise, sequence reform
measures. Helped to identify “quick wins”

Score in line with PEFA guidelines and information and
documentary evidence
8

Triangulation of information, where necessary

Govt. ownership is key. Stick to principle that
assessment is value neutral

Plan carefully the exercise and field work
9
 Working with Donors

PEFA high level indicators - international
standards, more demanding than the HIPCAAP. Need to be understood in the proper
context

PEFA assessment – not intended to be used
as a scorecard for conditionalities
10

Key to quality of PFM PR is team capabilities
and how assessment is conducted. Not
whether is stand alone or integrated in a
broader analytical product

PFM PR - if part of broader analytical
product, presentation as a free standing
report facilitates use as common information
pool
11
 Working across Networks

Working as a team, key to success

Be responsive to PEFA Secretariat’s quality
reviews

PEFA PMF learning curve – key to quality
12