THEMATIC SESSION ON COUNTRY SYSTEMS

HIGHLIGHTS

The Panel’s insightful contributions provided for a rich discussion on the evolution of the country systems agenda, lessons learned, and how this knowledge is shaping future directions. Here is an attempt to capture the main messages which can be taken to the high level session on effective institutions, illustrated by different Panel interventions:

1. Country leadershipis key,with a focus on results, change management, and effective sequencing of institutional and policy change

  • These foundations or principles for building institutions permeated all discussions, whether on public financial management, procurement, statistics, oversightor country systems in general.
  • Ghana exemplified the complexities involved in improving PFM systems, ranging from technical challenges to changing the attitudes of staff and other stakeholders.
  • Malawi explained the use of a platform approach with a comprehensive set of actions covering the complete public financial management cycle, as means to prioritize and sequence PFM reform led by the country.
  • The Task Forces on Public Financial Management and Procurementstressed the need to build and maintain competent staff capacities and link PFM and procurement with broader public sector reforms for sustainability.

2. We need to build on the strategic roles of public financial management, procurement and oversight functions for development effectiveness and transparency

  • Mexicohighlighted impressive savings in public procurement and the use of public procurement for economic stimulus and social development policies.
  • INTOSAI outlined the importantrole that supreme audit institutionscan play, as part of accountability systems, to improve the use of all public resources, and the delivery of public services.
  • The Task Forceshighlighted the need to balance controls with efficiency, keepingin mind the end-objective of achieving development results.
  • The European Commissionnoted that a credible and relevant program to improve PFM remains a criterion for budget support, now reinforced by new eligibility criteria regarding transparency and oversight of the budget, including the role of civil society.

3. The use of country systems in the delivery of assistance can play a catalytic role in building effective institutions

  • Ghanacalled Development Partners to follow through on their commitments to use country systems in line with the Paris and Accra agreements. In particular, the relationship between the quality of a country’s national systems and their use by donors needs to be consistent.
  • Malawi is conducting a structured, evidence-based dialogue with development partners to produce a joint action plan that links efforts to strengthen and use country PFM systems.
  • INTOSAIargued that government auditors’ participation in the audit of development programs is important as a means to strengthen domestic accountability.
  • The Task Forcesrecognized that while use of country systems is not an all-or-nothing question, more progress can and should be made. For example: innovative use of country PFM systems beyond general budget support (as also stressed by Malawi), based on enhanced risk management approaches.

4. Evidence-gathering on institutional performance and capacity development can better inform decision making

  • The Statistician General, South Africaexplained that improved in-country capacity to produce and use statistical information supports a culture of evidence-based decision making and results; hence, the model of statistics for transparency, accountability, results and transformation (START).
  • The European Commissionnoted therelevance of credible Monitoring and Evaluation systems.
  • Mexicothe Task Force on Procurementare consolidating frameworks and indicators to measure performance and results of the procurement systems, such as the Methodology for Assessing Procurement Systems (MAPS).
  • INTOSAIis developing a comprehensive performance measurement framework for SAIs.
  • The Task Force on PFM noted the experience of the Public Expenditure and Financial Accountability (PEFA)framework as a harmonized tool to measure PFM performance.

5. Systematic regional and global knowledge-sharing can facilitate learning on what works to make institutions more effective and reforms happen

  • INTOSAIexemplified how supreme audit institutions are helping to build institutional, professional and organizational capacity, through peer-to-peer support and south-south cooperation built around global norms.
  • The Task Forcesare promoting international platforms to connect PFM and Procurement practitioners to exchange knowledge that supports country-level efforts to strengthen and use country systems. These communities of practice would form part of a mutually reinforcing ”network of networks”.

Conclusion

As noted by the co-Chair of the Global Partnership on Country Systems, and as was evident in the Panel discussion, the country systems agenda remains very much relevant for aid effectiveness, but as importantly, for building institutions that contribute effectively to development outcomes.

Implications for the Bank

The Task Forces are co-chaired by the Bank, so we have helped to analyze the evidence and shape up the new directions on country systems. Interventions from other Panel Members were largely consistent with the messages of the Task Forces.