Public Financial Management Reform - A Literature Review Available

The African Development Bank, CIDA, DFID, Dutch Ministry of Foreign Affairs, SIDA have collaborated to publish "the first phase of what is intended to be multi-donor evaluation of PFM reform. The first phase – a literature review  to synthesise the main theoretical approaches and findings from evaluations of PFM reform programmes, and to identify knowledge gaps – was led by DFID." 
PFM Lit Review Final

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An In-Depth Look at PFM Reform in Vietnam

DC Forum

An In-Depth Look at PFM Reform in Vietnam

The April 1 DC Forum to be held at the Carnegie Endowment focuses on the exciting public financial management reforms in Vietnam.

Regarded as one of the most determined reformers in Asia, Vietnam has transitioned from a war-torn centrally planned economy to one of the most vibrant and fastest growing economies in the world. This session will present the results of two in-depth and in-country studies of reform in Vietnam; one sponsored by the United Nations Development Program, and the other by the Woodrow Wilson School of Public and International Affairs of Princeton University. The first looks at PFM reform, and concludes that considerable progress has been made in PFM and related reform components, but that consolidation and further improvement needs to occur. The second argues that adopting elements of a position-based civil service is key to PFM and related reforms, since Government must be capable of attracting and retaining skills in macroeconomic forecasting, accounting, auditing, treasury management, and ICT needed to implement such reforms.

The presentation will be led by Dr. Clay Wescott, Director of the Asia-Pacific Governance Institute, and Visiting Lecturer at the Woodrow Wilson School. He has invited graduate students who worked on the civil service part of the research to present their findings. Dr. Westcott has held senior positions with the Asian Development Bank, UNDP, Development Alternatives Inc., Price Waterhouse and the Harvard Institute for International Development. Dr. Wescott has degrees in Government from Harvard College (A.B., 1968, Magna cum Laude), and Boston University (PhD, 1980). Dr. Wescott has invited Saskia P. Bruynooghe and Trina Alejandra Q. Firmalo to join him. They are second year MPA students at the Wilson School, who conducted the research on strengthening the civil service in Vietnam.

This in-depth view of reform in one of the most significant developing countries in Asia will undoubtedly be a fascinating insight into issues that face countries around the developing world.

Register for this presentation or the entire season

The International Consortium sponsors a learning forum and luncheon the first Wednesday of each month from January through June, and from September through December, at The Carnegie Endowment for International Peace. Sessions begin at 11:45 and details can be found on the Upcoming Events page. Summaries of the presentations and question-and-answer periods which follow are published on the ICGFM blog

Solutions to the Banking Crisis

Clay Lowery and Leonard Lapidus discussed the causes of and solutions to the world-wide banking crisis at the latest ICGFM DC Forum on March 4th. The topic, International Experience in Managing Banking Crises, generated interest from the ICGFM members who attended the learning event.

Clay Lowery charted the course of the crisis from the August 2007 liquidity problem to the current situation. Although optimistic about the ability for governments to turn around the financial situation, Mr. Lowery commented that the response in the current stimulus bill is not "targeted, timely and temporary". He suggested that the current response in the United States could have unintended consequences such as inflation, higher interest rates through higher government debt and crowding out of the financial sector from borrowing because the government is borrowing so much. Mr Lowery cautioned that governments often budget at the same level as the year before making the expenditures permanent.

Clay Lowery discusses the European context to the financial crisis

Leonard Lapidus described the financial crisis as one of liquidity, solvency and contagion. Mr. Lapidus described the network affect in the financial crisis that spread from one institution to another. Financial counterparts were not sure of their partner's solvency. 

Mr. Lapidus believes that the response among governments to the crisis has been vigorous and on the right track. The stimulus packages should be short term. 

There was discussion about whether improved governance and audit is necessary. Mr. Lapidus pointed out that many actors in the financial system are not good agents for their constituency. For example, many executives in firms have not been good agents of shareholders and have taken on the prerogative of owners through large pay packages.

Leonard Lapidus suggesting that major changes are needed in institutional arrangements to promote more effective governance.