Good Practice PEAM Work

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Good Practice PEAM Work
Planning for High Impact
Bill Dorotinsky, PRMPS

• PEAM Core Course
• March 23, 2005

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PER Objectives
Inform Donor Lending
It is important to keep the multiple goals in
mind when planning the work
Policy advice to client
REFORM and Development
PER
Capacity-building
Identify lending opportunties
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Country Examples
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Examples
Lessons
Tanzania The annual government-led pubic
expenditure review process is managed by the
joint govt/donor/civil society PER working group.
Each year the PER work includes a budget review,
and in-depth analysis of selected policy and
management issues. Government is transferring the
Secretariat supporting the work to the Ministry
of Finance.
-- the way work is done can support country
institutions and build capacity
Poland The 2002 PER focused on providing
practical advice to the client. The client had
the choice of what issues the PER would cover. As
each PER input was prepared (e.g. budget
management), it was provided to Government as a
stand-alone paper to meet client needs. The full
PER report was a secondary aspect.
-- focusing on the client objective rather than
Bank product can support reform
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Country Examples
2
Examples
Lessons
Turkey The PER process was used to build
consensus and working relationships in Government
across competing agencies.
-- the way work is done can contribute to reform
directly
Mexico The government, under a fee-for-service
arrangement, is purchasing World Bank advisory
services on PFM for the Ministry of Finance. The
task is characterized by real-time advice and
products to support development of a reform
strategy and action plan. A PER is under
preparation, drawing on the knowledge gathered
via the advisory services, supplemented with
selected additional missions.
-- through supporting client needs, we can also
meet our information needs
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Country Examples
2
Examples
Lessons
Vietnam An annual program of analytic work has
grown into a Government-led PER process and donor
integration in support of a Government reform
program and strategy. With each iteration, the
Government takes more responsibility for leading
process and producing documents --- and
completing reforms.
-- proving value for Government leads to
continuous engagement, direct support to reform
implementation, and many opportunities for lending
Madagascar The government is in the process of
developing an action plan aiming at consolidating
the recommendations of different diagnosis (own
governments assessment, CFAA, CPAR, IMF
technical assistance reports, etc). The
government is expecting the donors to align their
program of work against this action plan. PERs
could seek to fill this consolidating role.
-- reducing transaction costs and aligning donors
can improve the chance of reform and build
capacity
Papua New Guinea The 2003 PNG PER was designed
from the start to support the Government budget
and public finance reform process. Donors share
the governments view that the PER must be a
process-driven exercise aimed at helping the
government implement the reforms. The PER
directly supports Cabinet and Treasury decisions
and processes with specific analytic products.
-- we can vary approach by country circumstance,
but plan from the start for higher impact
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Summarizing
The focus of the work is supporting Government
strategies and institutions, building capacity,
and reducing donor transaction costs --- towards
results on the ground --- rather than solely
diagnostic report production for donors.

1. the analytic work supports the Governments own
   public sector reform strategy and action plans
2. the work includes Government leadership in
   selecting topics, and Government production of
   working papers and the final report
3. the work outputs support the Government's own
   decision-making process
4. the process will be used to bring together
   Government actors
5. the process also brings together multiple donors
   to support and participate in the analytic work
   -- and hopefully to support more generally the
   Government reform strategy and action plan
6. the process also focuses on building domestic
   non-governmental capacity through use of local
   consultants where possible
7. within the Bank, the work seeks to integrate
   PREM, OPCSFM, and OPCSPR

A good test the Government is increasingly
taking over the process, building it into their
budget process.
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but the ideal is not always possible

• PEIRs, CFAAs and CPARs generally should seek
• greater country participation in planning and
  carrying out PFM work
• to harmonize with country budget cycles to
  support government processes
• be based on a country-specific strategy for PFM
  work over the medium-term to assure full coverage
  of issues, meet the relevant needs of all
  parties, minimize burden on country authorities,
  and avoid duplication of effort
• greater involvement of other donors
• cross-participation in missions by OPCS, PREM
  and IMF staff
• to share documentation and information on country
  issues, perhaps establishing a joint intranet
  repository
• to coordinate contract support to minimize
  duplication and maximize joint use of outputs
• mutual comment and concurrence on outputs, and
  produce joint outputs where possible (e.g.
  reports, or BTORs)
• joint dissemination missions, harmonizing
  messages

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Approaches for using PER as instrument of
change- fitting to country circumstances
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Approaches for using PER (2)