Evaluation of Public Financial Management Reform Evaluation Public of Financial Management Reform 2012:10 Joint Evaluation in Burkina Faso, 2001–2010 Final Country Case Study Report Andrew Lawson Where and why do Public Financial Management (PFM) reforms succeed? Where and how does donor support to Mailan Chiche PFM reform contribute most effectively to results? To answer these questions, an evaluation of PFM reforms has Idrissa Ouedraogo been carried out, primarily based on country studies of Burkina Faso, Ghana and Malawi. An international quantitative study and a literature review were also undertaken. This report presents the findings of the study in Burkina Faso The findings from the three country studies are summarised in a separate synthesis report, concluding that results tend to be good when there is a strong commitment at both political and technical levels, when reform designs and implementation models are well tailored to the context and when strong, government-led coordina- Evaluation of Public tion arrangements are in place to monitor and guide reforms. Donor funding for PFM reform has been effective in those countries where the context and mechanisms were right for success, and where external funding was focused on the Government’s own reform programme. The Financial Management Reform willingness of some Governments to fund PFM reforms directly shows that external funding may not be the deciding factor, however. Donor pressure to develop comprehensive PFM reform plans has been a positive influence in countries receiving Budget Support, but attempts to overtly influence either the pace or the content of in Burkina Faso, 2001–2010 PFM reforms were found to be ineffective and often counter-productive. Key lessons for donor agencies are thus to focus on where the right preconditions exist, to align to government programmes and, under all circumstances, to ensure that aid works in favour of the PFM system and not against it. Final Country Case Study Report The evaluation has been commissioned jointly by the African Development Bank (AfDB), the Swedish International Development Cooperation Agency (Sida) and the Danish International Development Assistance (DANIDA). JOINT EVALUATION 2012:10 SWEDISH INTERNATIONAL DEVELOPMENT COOPERATION AGENCY Address: SE-105 25 Stockholm, Sweden. Visiting address: Valhallavägen 199. Phone: +46 (0)8-698 50 00. Fax: +46 (0)8-20 88 64. www.sida.se [email protected] Joint Evaluation 2012:10 Evaluation of Public Financial Management Reform in Burkina Faso 2001–2010 Final Country Case Study Report Andrew Lawson Mailan Chiche Idrissa Ouedraogo Submitted by Fiscus Public Finance Consultants and Mokoro Ltd to the Evaluation Management Group June 2012 Author: Andrew Lawson, Mailan Chiche, Idrissa Ouedraogo The views and interpretations expressed in this report are the author and do not necessarily reflect those of the commissioning agencies, Sida, Danida and AfDB. Joint Evaluation 2012:10 Commissioned by Sida, Danida and AfDB Date of final report: June 2012 Published by: Sida, 2012 Copyright: Andrew Lawson, Mailan Chiche, Idrissa Ouedraogo Digital edition published by: Sida, 2012 Layout and print: Citat/Edita 2012 Art.no. SIDA61501en urn:nbn:se:sida-61501en ISBN: 978-91-586-4198-3 This publication can be downloaded/ordered from: www.Sida.se/publications Acronyms and Abbreviations AAP (HIPC) Annual Assessment & Action Plan ACCT Agence Comptable Centrale du Trésor AFD Agence Française de Développement AfDB African Development Bank ASCE Autorité Supérieure de Controle de l’Etat AusAID Australian Agency for International Development BCEAO Banque Centrale des Etats d’Afrique de l’Ouest CABRI Collaborative African Budget Reform Initiative CAPA/FP Cadre Partenarial d’Appui au renforcement des Finances Publiques CAST Compte d’Affectation Spéciale du Trésor CdC Cour des Comptes CDMT Cadre de dépenses à Moyen Terme (MTEF) CF Contrôleur Financier CFAA Country Financial Accountability Assessment CGAB Cadre Général d’organisation des Appuis Budgétaires CICL Comptabilité Intégrée des Collectivités Locales CID Circuit Intégré de la Dépense CIDA Canadian International Development Agency CIE Comptabilité Intégrée de l’Etat CIFE Circuit Intégré des Financements Extérieurs CIR Circuit Intégré des Recettes CL Collectivités Locales CNDP Comité National de Dette Publique COMFIB Commission des Finances et du Budget CONEA Coordination Nationale pour l’Efficacité de l’Aide CPAR Country Procurement Assessment Review CPIA Country Policy & Institutional Assessment 5 ACRONYMS and AbbREViaTIOns CRAL Commission des Règlements à l’amiable des litiges CRD Comité de Règlement des Diférents CSLP Cadre Stratégique de Lutte contre la Pauvreté (Poverty Reduction Strategy) CSOs Civil Society Organisations CT Collectivités Territoriales DAC Development Assistance Committee (of the OECD) DAAF Direction des Affaires Administratives et Financières DAF Direction des Affaires Financières DANIDA Danish International Development Assistance DC Developing Country DCCF Direction Centrale du Contrôle Financier DCMP Direction Centrale des Marchés Publics DDP Direction de la Dette Publique DELF Direction des Etudes et de la Législation Financière DEP Direction des Etudes et de la Planification DGB Direction Générale du Budget DGCOOP Direction Générale de la Coopération (Ministry of Economy and Finance) DGE Division Grandes Entreprises DGEP Direction Générale de l’Economie et de la Planification DGI Direction Générale des Impôts DGTCP Direction Générale du Trésor et de la Comptabilité Publique DMP Direction des Marchés Publics DP Development Partner DPL Development Policy Lending DPO Development Policy Operation DRH Direction des Ressources Humaines DSI Direction des Services Informatiques DSO Direction de la Solde et de l’Ordonnancement EC European Commission EMRO Economic Management Reform Operation EPE Etablissement Public d’Etat 6 ACRONYMS and AbbREViaTIOns FCFA Francs de la communauté financière africaine FTI Fast Track Initiative GBS General Budget Support GDP Gross Domestic Product GFS Government Finance Statistics GoBF Government of Burkina Faso GTZ German Technical Cooperation HACLC Haute Autorité de Coordination de la Lutte contre la Corruption HIPC Highly Indebted Poor Countries HIPC AAP HIPC Public Expenditure Tracking Assessment and Action Plan IEG Independent Evaluation Group (World Bank) IFMS Integrated Financial Management System IFU Identifiant Financier Unique IGB Inspection Générale du Budget IGE Inspection Générale d’Etat IGF Inspection Générale des Finances IGT Inspection Générale du Trésor IMF International Monetary Fund INSD Institut National de la Statistique et de la Démographie INTOSAI International Organisation of Supreme Audit Institutions MCMPF Ministère Chargé de Mission auprès du Président du Faso MDG Millennium Development Goal MEF Ministère de l’Economie et des Finances MFB Ministère des Finances et du Budget MFPRE Ministère de la Fonction Publique et de la Réforme de l’Etat MoF Ministry of Finance MPs Members of Parliament MTEF Medium Term Expenditure Framework ODA Official Development Assistance OECD Organisation for Economic Cooperation & Development ON Ordonnateur National PABG Projet d’appui à la Bonne Gouvernance 7 ACRONYMS and AbbREViaTIOns PAP Plan d’action prioritaire PAAFIE Programme d’Appui aux Administrations Economiques et Financières PARI Programme d’Appui Régional à l’Intégration PAREF Programme d’Appui aux Réformes Economiques PEFA Public Expenditure & Financial Accountability PDDEB Plan Décennal de Developpement de l’Education de Base PER Public Expenditure Review PFM Public Finance Management PG Paierie Générale PIP Programme d’Investissements Public PNAEPA Plan National d’Approvisionnement en Eau Potable et Assainissement PNDS Plan National de Développement Sanitaire PRGB Plan of Action to Strengthen Budget Management PRGE Programme de Renforcement de la Gouvernance Economique PRSC Poverty Reduction Strategy Credit PRS(P) Poverty Reduction Strategy (Paper) PTF Partenaires Techniques et Financiers ROSC Report on the Observance of Standards & Codes (IMF) SBS Sector Budget Support SCADD Stratégie de Croissance Accélérée et de Développement Durable SCAP Stratégie Commune d’Assistance Pays SECO Swiss Secretariat for Economic Cooperation SG Secrétariat Général Sida Swedish International Development Cooperation Agency SIGASPE Système Intégré de Gestion Administrative et Salariale du Personnel de l’Etat SIMP Système d’Information Intégré des Marchés Publics SNMF Stratégie Nationale de Micro-Finance SP PPF Secrétariat Permanant pour le suivi des Programmes et Politiques Financières SRFP Stratégie de Renforcement des Finances Publiques 8 ACRONYMS and AbbREViaTIOns SSA Sub-Saharan Africa STELA Technical Secretariat for the Effectiveness of Aid SYGADE Système de Gestion et d’Analyse de la Dette SYSCOA Système Comptable Ouest-Africain TOFE Tableau des Opérations Financières de l’Etat ToR Terms of Reference TSA Treasury Single Account UNDP United Nations Development Programme USAID United States Agency for International Development USD United States Dollar VAT Value Added Tax WAEMU West African Economic and Monetary Union (UEMOA) WB World Bank 9 Table of Contents Executive Summary ............................................................................... 12 1 Summary of Objectives and Approach ..........................................20 1.1 Objectives of the evaluation .........................................................20 1.2 Evaluation approach .....................................................................20