Public Expenditure and Financial Accountability Program Milestones in PFM Reform Effectiveness

10 Years of the PEFA Program Implementing the Aid Effectiveness Agenda

What is PEFA?

The PFM Performance Measurement Framework

The PEFA Program was founded in 2001 as a multi-donor partnership between seven donor agencies and

international financial institutions to assess the condition of country public expenditure, procurement and

financial accountability systems and develop a practical sequence for reform and capacity-building actions. A

Steering Committee comprising these agencies manages the Program, while the Secretariat implements the

PEFA activities. The Program works closely with the OECD DAC Task Force on Public Financial Management.

Under the PEFA program, the PFM Performance Measurement Framework (or PEFA Framework) was created

as a high level analytical instrument which consists of a set of 31 indicators and a supporting PFM Performance

Report, providing an overview of the performance of a country’s PFM system.

It covers the entire financial management cycle and embraces international standards and codes in its

structure. Through repeat assessments in a country, it is capable of demonstrating performance changes

over time. The Framework, launched in 2005, focuses on the central government but the application of the

Framework at sub-national government level is becoming widespread and guidelines were developed in 2008.

Most finalized reports are publicly available at www.pefa.org.

Where does PEFA Come from?

The Strengthened Approach

The PEFA Program builds on the principles of the Strengthened Approach to Supporting Public Financial

Management Reform which is embodied in three components and closely aligned with the Paris Declaration

on Aid Effectiveness:

1. A CountRY-lEd AgEndA, i.e. a government-led reform program for which analytical work, reform

design, implementation and monitoring reflect country priorities and are integrated into government’s

institutional structures;

2. A CooRdinAtEd PRogRAM oF suPPoRt FRoM donoRs And intERnAtionAl FinAnCE institu-tions in relation to both analytical work, reform financing and technical support for implementation;

3. A shAREd inFoRMAtion Pool on PubliC FinAnCiAl MAnAgEMEnt i.e. information on PFM sys-

tems and their performance which is commonly accepted by and shared among the stakeholders at coun-

try level, thus avoiding duplicative and inconsistent analytical work.

Phase 4global Public good ? (2012–2017)

1. Enhance global relevance of the PEFA Framework2. outreach to all PEFA stakeholder groups3. build the PEFA knowledge platform— 2011

— 2008

— 2007

— 2006

— 2005

— 2004

— 2001

Phase 3integration (2009–2012)

1. Monitoring changes in PFM systems performance over time2. Enhance dissemination, donor collaboration and country ownership

Phase 2dissemination (2006–2008)

1. Roll-out of the PEFA Framework globally2. Focus on compliance with PEFA methodology

Phase 1development (2001–2005)

1. Formulate the strengthened Approach 2. develop the PEFA Framework

Upgrade of the PEFA Framework with revision of Indicators 2, 3 and 19

More than 1500 government, agency staff and experts trained to date by the PEFA Secretariat

First report on changes in PFM systems performance, based on 32 country repeat assessments

First PEFA assessment in OECD country (Norway)

First PEFA repeat assessment measuring change over time (Mozambique)

100 countries have been assessed in October

Over 10 donor agencies leading PEFA assessments

First government-led PEFA assessment (Zambia)

Circulation of the first PEFA report on the PEFA website

Launching of the PEFA Framework

First PEFA assessment completed (Malawi)

First PEFA assessments published (Afghanistan and Zambia)

First sub national assessments (Uganda)

Pilot testing of the PEFA Framework under-taken in 25 countries

Creation of the PEFA Program initiative

NewZealand *

Vanuatu Fiji

PapuaNew Guinea

SolomonIslands

Tuvalu

KiribatiNauru

Marshall IslandsFederated States of Micronesia

Palau

Timor-Leste

Indonesia

Philippines

BhutanNepal

India *Bangladesh

LaoP.D.R.

ThailandCambodia

Vietnam

Maldives

Kiribati

Samoa

Tonga

Fiji

Argentina

Uruguay

Paraguay

Bolivia

Brazil *Peru *

Ecuador

Colombia *

GuyanaSuriname

The Bahamas

HaitiJamaicaBelize

GuatemalaEl Salvador

Costa RicaPanama

NicaraguaHonduras

MauritiusMadagascar

Seychelles

Comoros

LesothoSouthAfrica

Swaziland

BotswanaNamibia Zimbabwe

Mozambique *

MalawiZambia

Dem. Rep. ofCongo

RwandaBurundiTanzania *

KenyaUganda *

SomaliaEthiopia *

Gabon Congo

CentralAfrican Rep.Cameroon

Sudan

South Sudan *

Rep. ofYemen

ChadNigerMali

Burkina Faso *

Benin

Nigeria

Togo

São Tomé and Príncipe

Ghana *

Côted’Ivoire

LiberiaSierra Leone *

GuineaGuinea-Bissau

Senegal *

Mauritania

The Gambia

CapeVerde

Morocco

Algeria

Tunisia

FYRMacedonia

Arab Rep. of Egypt

Pakistan *

Afghanistan

Kazakhstan

Kyrgyz Rep.

Tajikistan

Azer-baijan

Georgia *Armenia

Kuwait

Russian Federation

Jordan

Kosovo *

Iraq *

Syrian ArabRep.

Turkey

Lebanon

MoldovaUkraine

Serbia

Belarus

Norway

RussianFed.

The Neth. *

MontenegroAlbania

U. K. *

SwitzerlandFrance *

Turks and Caicos Islands (UK)

NewCaledonia

(Fr.)

Mayotte (Fr.)

West Bank and Gaza

Cook Is. (NZ)

Wallis-et-Futuna (Fr.)

Niue(NZ)

French Polynesia (Fr.)

St.-Pierre-et-Miquelon (Fr.)

DominicanRepublic

Trinidad &Tobago

GrenadaSt. Vincent andthe Grenadines

Dominica

Barbados

St. Kittsand Nevis

Antigua &Barbuda

St. Lucia

Anguilla (UK)

Aruba(Neth.)

Montserrat(UK)

IBRD 38924 NOVEMBER 2011This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other informationshown on this map do not imply, on the part of The World BankGroup, any judgment on the legal status of any territory, or anyendorsement or acceptance of such boundaries.

NATIONAL PLANNED & COMMENCED ONLY

NATIONAL SUBSTANTIALLY COMPLETED – BASELINE (1 only)

NATIONAL SUBSTANTIALLY COMPLETED – REPEAT (>2)

SUB-NATIONAL EXPERIENCE(France, the Netherlands, New Zealand and the U.K. have sub-national experiences in their overseas countries and territories only)

SUB-NATIONAL EXPERIENCE ONLY(Substantially Completed or Commenced or Planned)

ASSESSMENT STATUS

Note: Substantially completed status equals a full PEFA report has been prepared either in draft or final version.

*

global PEFA Experience

What services does PEFA offer?The Program provides its services through the PEFA

Secretariat. The PEFA Program’s main activities are:

• developmentandmaintenanceoftheFramework,

• supportandguidancetotheusersoftheFramework,

• promotionoftrainingprogramsandmaterialsfor

assessors and assessment managers (consultants,

donors and government staff) and,

• monitoring of the roll-out of the Strengthened

Approach and application of the Framework for

lesson learning and dissemination.

Technical support to users of the Framework and quality

review of assessment reports are available upon request

by email to the Secretariat at services@pefa.org. Reports,

materials and general guidance are available from the

PEFA website www.pefa.org.

Why does PEFA Matter?PEFA has become a global public good, a widely accepted

standard for PFM systems assessments. While the initial

support and application of the tool continues to be drawn

from the seven PEFA partners, at least 20 other donor

and multilateral organizations have been involved in some

capacity with PEFA assessments, and the number of

governments leading the assessments is growing.

how Many Countries have been Assessed?As of end of September 2011, the experience with PEFA

assessments covers 65% of countries worldwide: 245

assessments reports prepared in 126 countries including 21

government-led and 69 sub-national assessments. Of the

finalized reports 63% have been published. The breakdown

as of September 2011 illustrates the increasing interest by

country and donor partners at the sub national assessment

level and the growing importance of repeat assessments.

in What Way can PEFA help interested Countries?

The 245 assessments conducted to date have produced

the following benefits to country partners:

• Deliveringacredible,comprehensiveandevidence-

based diagnostic that can be compared over time

and serve as a basis to monitor the results of PFM

reform efforts, through repeat assessments and/or

by building PEFA indicators into a country’s own

Monitoring & Evaluation mechanism.

• EnablingcountrygovernmentstoleadPFMassess-

ments or actively engaged in work led by external

agencies, through a clear and specific assessment

framework with objective rating criteria.

• Providing harmonization and standardization of

the information requested by external agencies

using a common assessment tool.

• Providingacommonplatformforstakeholderdia-

logue on PFM reforms by facilitating priority setting

and defining key entry-points for PFM reform plans.

• Strengthening country capacities to promote

alignment with and use of country systems (such

as public financial management, procurement,

statistics, monitoring and accountability systems).

• Promoting Capacity-Development through peer-

learning and regional PFM groupings.

PEFA Coverage by Entities

Baseline Subnational Government

BaselineCentral Government

Repeat Subnational Government

Repeat Central Government

49%

25%

3%

22%

Public Expenditure and Financial Accountability Program Milestones in PFM Reform Effectiveness

10 Years of the PEFA Program Implementing the Aid Effectiveness Agenda

What is PEFA?

The PFM Performance Measurement Framework

The PEFA Program was founded in 2001 as a multi-donor partnership between seven donor agencies and

international financial institutions to assess the condition of country public expenditure, procurement and

financial accountability systems and develop a practical sequence for reform and capacity-building actions. A

Steering Committee comprising these agencies manages the Program, while the Secretariat implements the

PEFA activities. The Program works closely with the OECD DAC Task Force on Public Financial Management.

Under the PEFA program, the PFM Performance Measurement Framework (or PEFA Framework) was created

as a high level analytical instrument which consists of a set of 31 indicators and a supporting PFM Performance

Report, providing an overview of the performance of a country’s PFM system.

It covers the entire financial management cycle and embraces international standards and codes in its

structure. Through repeat assessments in a country, it is capable of demonstrating performance changes

over time. The Framework, launched in 2005, focuses on the central government but the application of the

Framework at sub-national government level is becoming widespread and guidelines were developed in 2008.

Most finalized reports are publicly available at www.pefa.org.

Where does PEFA Come from?

The Strengthened Approach

The PEFA Program builds on the principles of the Strengthened Approach to Supporting Public Financial

Management Reform which is embodied in three components and closely aligned with the Paris Declaration

on Aid Effectiveness:

1. A CountRY-lEd AgEndA, i.e. a government-led reform program for which analytical work, reform

design, implementation and monitoring reflect country priorities and are integrated into government’s

institutional structures;

2. A CooRdinAtEd PRogRAM oF suPPoRt FRoM donoRs And intERnAtionAl FinAnCE institu-tions in relation to both analytical work, reform financing and technical support for implementation;

3. A shAREd inFoRMAtion Pool on PubliC FinAnCiAl MAnAgEMEnt i.e. information on PFM sys-

tems and their performance which is commonly accepted by and shared among the stakeholders at coun-

try level, thus avoiding duplicative and inconsistent analytical work.

Phase 4global Public good ? (2012–2017)

1. Enhance global relevance of the PEFA Framework2. outreach to all PEFA stakeholder groups3. build the PEFA knowledge platform— 2011

— 2008

— 2007

— 2006

— 2005

— 2004

— 2001

Phase 3integration (2009–2012)

1. Monitoring changes in PFM systems performance over time2. Enhance dissemination, donor collaboration and country ownership

Phase 2dissemination (2006–2008)

1. Roll-out of the PEFA Framework globally2. Focus on compliance with PEFA methodology

Phase 1development (2001–2005)

1. Formulate the strengthened Approach 2. develop the PEFA Framework

Upgrade of the PEFA Framework with revision of Indicators 2, 3 and 19

More than 1500 government, agency staff and experts trained to date by the PEFA Secretariat

First report on changes in PFM systems performance, based on 32 country repeat assessments

First PEFA assessment in OECD country (Norway)

First PEFA repeat assessment measuring change over time (Mozambique)

100 countries have been assessed in October

Over 10 donor agencies leading PEFA assessments

First government-led PEFA assessment (Zambia)

Circulation of the first PEFA report on the PEFA website

Launching of the PEFA Framework

First PEFA assessment completed (Malawi)

First PEFA assessments published (Afghanistan and Zambia)

First sub national assessments (Uganda)

Pilot testing of the PEFA Framework under-taken in 25 countries

Creation of the PEFA Program initiative