Supporting Capacity Development in PFM – A Practitioner’s Guide Volume I

As part of the global efforts to make aid more effective, high level commitments have been made by partner countries to strengthen their national systems and by donors to use them to the maximum extent possible. Strengthening government systems and in particular their Public Financial Management (PFM) systems should of course be viewed in terms of the importance of sound PFM systems to service delivery, economic growth and poverty reduction not to the achievement of external targets. As noted in CABRI (2009a) a government may ask donors only to use certain components of their country systems when they feel they have sufficient control over the use of that aid, knowing that they will be made to be accountable for its use. “Ultimately, therefore, whilst most partner countries demand stronger use of country systems across the entire government cycle, the decision to use country systems must be taken in collaboration with partner countries and in line with their own priorities” (OECD 2010a: 53).

In support of the above commitments, this guide takes as its starting point, partner country demand for better support for capacity development. It is designed both for donor and partner country representatives. It is a tool for donor representatives in country and in headquarters to help them better support capacity development efforts. The Guide is also intended as a tool for partner country stakeholders (central and sector ministries) who may wish to use this guidance to provide donor representatives with advice on how to support their capacity development efforts. Given the broad scope of PFM, it is hoped that it will also be of interest to other sector specialists. The Practitioner’s Guide has drawn from the experience in five countries and the input of members of the Task Force on Public Financial Management.

Financed by the European Union

Published 2011

Authors: Carole Pretorius, Ron Quist, Jérôme Dendura, Mario Dehove