ICGFM Promotes Knowledge Transfer Among Public Financial Management Experts

Working globally with governments, organizations, and individuals, the International Consortium on Governmental Financial Management is dedicated to improving financial management by providing opportunities for professional development and information exchange.

Thursday, December 3, 2009

Improving Sector Performance Workshop

Jérôme Dendura, ADM Coordinator, lead a workshop on sector performance at the 2009 ICGFM Winter Conference. M. Dendura introduced the EU process of Aid Delivery Methods (ADM) and a history of peformance frameworks including Performance Assessment Frameworks (PAF) and Public Expenditure and Financial Accountability (PEFA). He described the limitations of the PAF approach. For example, PAF has a imited number of output and outcome indicators making it difficult to assess the overall “health” of a sector, according to M. Dendura. PAF indicators often pay limited attention to policy and regulatory reforms and administrative changes and no attention to institutional arrangements. These approaches often do not provide sufficient decision-making information.

PEFA has been introduced at previous ICGFM sessions. M. Dendura says that PEFA can be used effectively in any country. PEFA provides a standardized methodology to assess the “health” of a country PFM system. It provides a comprehensive analysis of a PFM system “ability to perform”, based on evidence rather than perception. M. Dendura asked "if PEFA can work for the PFM sector why can’t a similar approach be taken for the health and education sectors?"

There is growing international recognition that it is unrealistic and unfair to measure outcomes annually, according to M. Dendura. He asserts that there is growing international recognition that joint annual reviews do not provide the level of depth to fully understand the performance of an entire sector. He conceded that there is currently no widely adopted mechanism to undertake a more comprehensive sector review on a more realistic timeframe, such as every three years.

The workshops generated animated discussion. Groups of ICGFM participants evaluated numerous scenarios.

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