Strengthening Public Financial Management : Exploring Drivers and Effects
This paper explores two relationships, first between country characteristics and the quality of public financial management ('drivers'), and second between the quality of public financial management systems and expected outcomes ('ef...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank Group, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/11/20346313/strengthening-public-financial-management-exploring-drivers-effects http://hdl.handle.net/10986/20631 |
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okr-10986-20631 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
ACCOUNTABILITY RELATIONSHIPS ACCOUNTING AGGREGATE BUDGET AGGREGATE DEMAND AGGREGATE DISCIPLINE AGGREGATE EXPENDITURE AGGREGATE EXPENDITURES AGGREGATE FISCAL AGGREGATE FISCAL DISCIPLINE AID DEPENDENCY ALLOCATION ALLOCATION OF FUNDS ANNUAL DEFICIT ANNUAL RATE BUDGET ALLOCATIONS BUDGET CREDIBILITY BUDGET EXECUTION BUDGET IMPLEMENTATION BUDGET PLANNING BUDGET POLICY BUDGET SYSTEMS BUDGETARY PROCESS BUDGETING BUDGETING PROCESS CHECKS CIVIL LIBERTIES COMPOSITION OF EXPENDITURES COST EFFECTIVENESS COST-EFFECTIVENESS COUNTRY ANALYSIS COUNTRY COMPARISONS COUNTRY DATA COUNTRY EXPERIENCE CREDIBLE BUDGET DATA ANALYSIS DEBT DEBT RELIEF DEBT SERVICE DEBT SERVICE PAYMENTS DECISION MAKING DECISION-MAKERS DEMOCRATIC GOVERNMENTS DEVELOPING COUNTRIES DEVELOPMENT ASSISTANCE DEVELOPMENT POLICY DIAGNOSTIC TOOL DOMESTIC REVENUE DONOR AGENCIES DUMMY VARIABLE DUMMY VARIABLES ECONOMETRIC ANALYSIS ECONOMETRIC ASSESSMENT ECONOMETRICS ECONOMIC CONDITIONS ECONOMIC GROWTH ECONOMIC INSTABILITY ECONOMIC OUTLOOK EDUCATION EXPENDITURES EFFICIENCY OF GOVERNMENT EXPENDITURE EXPENDITURE TRACKING SURVEYS EXTERNAL AUDIT FINANCIAL ACCOUNTABILITY FINANCIAL CRISIS FISCAL AFFAIRS FISCAL DEFICITS FISCAL DISCIPLINE FISCAL FRAMEWORKS FISCAL OUTCOMES FISCAL PERFORMANCE FISCAL POLICY FISCAL PROGRAM FISCAL REPORTING FISCAL STANCE FISCAL YEARS GDP GDP PER CAPITA GOVERNMENT PERFORMANCE GOVERNMENT SPENDING GROWTH RATE HEALTH EXPENDITURE HEALTH SECTOR HEALTH SPENDING HIPC HOLDING INCOME GROUPS INCOME LEVEL INCOME LEVELS INCOME TAX INSTITUTIONAL DEVELOPMENT INTEREST RATES INTERNATIONAL BANK INTERNATIONAL FINANCIAL CRISIS INVESTING MACRO-ECONOMIC POLICIES MACROECONOMIC FRAMEWORK MEDIUM-TERM EXPENDITURE MEDIUM-TERM EXPENDITURE FRAMEWORKS MIDDLE INCOME COUNTRIES MONETARY FUND NATIONAL INCOME NATIONAL POLICY NATIONAL POLICY PRIORITIES NATURAL RESOURCES OFFICIAL DEVELOPMENT ASSISTANCE OPERATIONAL EFFICIENCY OVERHEAD COST PER CAPITA INCOME PER CAPITA INCOMES PERFORMANCE OF GOVERNMENT POLITICAL ECONOMY POLITICAL STABILITY POLITICIANS PROGRAMS PUBLIC PUBLIC EXPENDITURE PUBLIC EXPENDITURE REVIEWS PUBLIC EXPENDITURE TRACKING PUBLIC FINANCE PUBLIC FINANCIAL MANAGEMENT PUBLIC FINANCIAL MANAGEMENT SYSTEMS PUBLIC FUNDS PUBLIC RESOURCES PUBLIC SECTOR PUBLIC SECTOR PERFORMANCE PUBLIC SECTOR SPECIALIST PUBLIC SERVICE PUBLIC SERVICE DELIVERY PUBLIC SERVICES PURCHASING POWER REAL GDP REALLOCATIONS REFORM APPROACHES REFORM STRATEGIES RESOURCE AVAILABILITY RETURN RETURNS REVENUE VOLATILITY SECTORAL ALLOCATIONS SECTORAL BUDGET SECTORAL EXPENDITURE SOCIAL WELFARE SUSTAINABLE FISCAL BALANCE TAX ADMINISTRATION TAX POLICY TAX REVENUE TERRORISM TOTAL EXPENDITURE TOTAL REVENUE TRANSPARENCY UNCERTAINTY WEALTH |
| spellingShingle |
ACCOUNTABILITY RELATIONSHIPS ACCOUNTING AGGREGATE BUDGET AGGREGATE DEMAND AGGREGATE DISCIPLINE AGGREGATE EXPENDITURE AGGREGATE EXPENDITURES AGGREGATE FISCAL AGGREGATE FISCAL DISCIPLINE AID DEPENDENCY ALLOCATION ALLOCATION OF FUNDS ANNUAL DEFICIT ANNUAL RATE BUDGET ALLOCATIONS BUDGET CREDIBILITY BUDGET EXECUTION BUDGET IMPLEMENTATION BUDGET PLANNING BUDGET POLICY BUDGET SYSTEMS BUDGETARY PROCESS BUDGETING BUDGETING PROCESS CHECKS CIVIL LIBERTIES COMPOSITION OF EXPENDITURES COST EFFECTIVENESS COST-EFFECTIVENESS COUNTRY ANALYSIS COUNTRY COMPARISONS COUNTRY DATA COUNTRY EXPERIENCE CREDIBLE BUDGET DATA ANALYSIS DEBT DEBT RELIEF DEBT SERVICE DEBT SERVICE PAYMENTS DECISION MAKING DECISION-MAKERS DEMOCRATIC GOVERNMENTS DEVELOPING COUNTRIES DEVELOPMENT ASSISTANCE DEVELOPMENT POLICY DIAGNOSTIC TOOL DOMESTIC REVENUE DONOR AGENCIES DUMMY VARIABLE DUMMY VARIABLES ECONOMETRIC ANALYSIS ECONOMETRIC ASSESSMENT ECONOMETRICS ECONOMIC CONDITIONS ECONOMIC GROWTH ECONOMIC INSTABILITY ECONOMIC OUTLOOK EDUCATION EXPENDITURES EFFICIENCY OF GOVERNMENT EXPENDITURE EXPENDITURE TRACKING SURVEYS EXTERNAL AUDIT FINANCIAL ACCOUNTABILITY FINANCIAL CRISIS FISCAL AFFAIRS FISCAL DEFICITS FISCAL DISCIPLINE FISCAL FRAMEWORKS FISCAL OUTCOMES FISCAL PERFORMANCE FISCAL POLICY FISCAL PROGRAM FISCAL REPORTING FISCAL STANCE FISCAL YEARS GDP GDP PER CAPITA GOVERNMENT PERFORMANCE GOVERNMENT SPENDING GROWTH RATE HEALTH EXPENDITURE HEALTH SECTOR HEALTH SPENDING HIPC HOLDING INCOME GROUPS INCOME LEVEL INCOME LEVELS INCOME TAX INSTITUTIONAL DEVELOPMENT INTEREST RATES INTERNATIONAL BANK INTERNATIONAL FINANCIAL CRISIS INVESTING MACRO-ECONOMIC POLICIES MACROECONOMIC FRAMEWORK MEDIUM-TERM EXPENDITURE MEDIUM-TERM EXPENDITURE FRAMEWORKS MIDDLE INCOME COUNTRIES MONETARY FUND NATIONAL INCOME NATIONAL POLICY NATIONAL POLICY PRIORITIES NATURAL RESOURCES OFFICIAL DEVELOPMENT ASSISTANCE OPERATIONAL EFFICIENCY OVERHEAD COST PER CAPITA INCOME PER CAPITA INCOMES PERFORMANCE OF GOVERNMENT POLITICAL ECONOMY POLITICAL STABILITY POLITICIANS PROGRAMS PUBLIC PUBLIC EXPENDITURE PUBLIC EXPENDITURE REVIEWS PUBLIC EXPENDITURE TRACKING PUBLIC FINANCE PUBLIC FINANCIAL MANAGEMENT PUBLIC FINANCIAL MANAGEMENT SYSTEMS PUBLIC FUNDS PUBLIC RESOURCES PUBLIC SECTOR PUBLIC SECTOR PERFORMANCE PUBLIC SECTOR SPECIALIST PUBLIC SERVICE PUBLIC SERVICE DELIVERY PUBLIC SERVICES PURCHASING POWER REAL GDP REALLOCATIONS REFORM APPROACHES REFORM STRATEGIES RESOURCE AVAILABILITY RETURN RETURNS REVENUE VOLATILITY SECTORAL ALLOCATIONS SECTORAL BUDGET SECTORAL EXPENDITURE SOCIAL WELFARE SUSTAINABLE FISCAL BALANCE TAX ADMINISTRATION TAX POLICY TAX REVENUE TERRORISM TOTAL EXPENDITURE TOTAL REVENUE TRANSPARENCY UNCERTAINTY WEALTH Fritz, Verena Sweet, Stephanie Verhoeven, Marijn Strengthening Public Financial Management : Exploring Drivers and Effects |
| relation |
Policy Research Working Paper;No. 7084 |
| description |
This paper explores two relationships,
first between country characteristics and the quality of
public financial management ('drivers'), and
second between the quality of public financial management
systems and expected outcomes ('effects'). On the
influence of country characteristics, the paper investigates
economic factors (income level, growth, and resource
dependency), population size, levels and sources of revenue,
and three macro-political characteristics -- political
stability, regime type, and the presence of programmatic
parties. These characteristics jointly explain about 40
percent of the variation in the quality of public financial
management across countries. Furthermore, first-difference
analysis suggests that countries with lower initial public
financial management quality improve at a higher rate over
time. This implies that structural factors set the scene for
the likelihood of better or worse performance, but also that
there is substantial variation among countries sharing
certain characteristics and reform opportunities exist even
in unfavorable environments. Methodologically, a key
limitation is that the direction of causality cannot be
fully addressed with the types of data available. On the
effects of the performance of public financial management,
the paper finds evidence that stronger performance results
in better budget credibility, but not in lower deficits.
Furthermore, there is no clear evidence regarding
operational efficiency. The observed disconnect could be
caused by missing complementary state capacities,
measurement problems, or other issues, which need to be
explored further. Overall, the findings are consistent with
the assumption that stakeholder incentives and
constellations matter and that reform approaches combining
good technical calibration and political economy
considerations are likely to influence success in
strengthening public financial management. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Fritz, Verena Sweet, Stephanie Verhoeven, Marijn |
| author_facet |
Fritz, Verena Sweet, Stephanie Verhoeven, Marijn |
| author_sort |
Fritz, Verena |
| title |
Strengthening Public Financial Management : Exploring Drivers and Effects |
| title_short |
Strengthening Public Financial Management : Exploring Drivers and Effects |
| title_full |
Strengthening Public Financial Management : Exploring Drivers and Effects |
| title_fullStr |
Strengthening Public Financial Management : Exploring Drivers and Effects |
| title_full_unstemmed |
Strengthening Public Financial Management : Exploring Drivers and Effects |
| title_sort |
strengthening public financial management : exploring drivers and effects |
| publisher |
World Bank Group, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2014/11/20346313/strengthening-public-financial-management-exploring-drivers-effects http://hdl.handle.net/10986/20631 |
| _version_ |
1764446656639533056 |
| spelling |
okr-10986-206312021-04-23T14:03:59Z Strengthening Public Financial Management : Exploring Drivers and Effects Fritz, Verena Sweet, Stephanie Verhoeven, Marijn ACCOUNTABILITY RELATIONSHIPS ACCOUNTING AGGREGATE BUDGET AGGREGATE DEMAND AGGREGATE DISCIPLINE AGGREGATE EXPENDITURE AGGREGATE EXPENDITURES AGGREGATE FISCAL AGGREGATE FISCAL DISCIPLINE AID DEPENDENCY ALLOCATION ALLOCATION OF FUNDS ANNUAL DEFICIT ANNUAL RATE BUDGET ALLOCATIONS BUDGET CREDIBILITY BUDGET EXECUTION BUDGET IMPLEMENTATION BUDGET PLANNING BUDGET POLICY BUDGET SYSTEMS BUDGETARY PROCESS BUDGETING BUDGETING PROCESS CHECKS CIVIL LIBERTIES COMPOSITION OF EXPENDITURES COST EFFECTIVENESS COST-EFFECTIVENESS COUNTRY ANALYSIS COUNTRY COMPARISONS COUNTRY DATA COUNTRY EXPERIENCE CREDIBLE BUDGET DATA ANALYSIS DEBT DEBT RELIEF DEBT SERVICE DEBT SERVICE PAYMENTS DECISION MAKING DECISION-MAKERS DEMOCRATIC GOVERNMENTS DEVELOPING COUNTRIES DEVELOPMENT ASSISTANCE DEVELOPMENT POLICY DIAGNOSTIC TOOL DOMESTIC REVENUE DONOR AGENCIES DUMMY VARIABLE DUMMY VARIABLES ECONOMETRIC ANALYSIS ECONOMETRIC ASSESSMENT ECONOMETRICS ECONOMIC CONDITIONS ECONOMIC GROWTH ECONOMIC INSTABILITY ECONOMIC OUTLOOK EDUCATION EXPENDITURES EFFICIENCY OF GOVERNMENT EXPENDITURE EXPENDITURE TRACKING SURVEYS EXTERNAL AUDIT FINANCIAL ACCOUNTABILITY FINANCIAL CRISIS FISCAL AFFAIRS FISCAL DEFICITS FISCAL DISCIPLINE FISCAL FRAMEWORKS FISCAL OUTCOMES FISCAL PERFORMANCE FISCAL POLICY FISCAL PROGRAM FISCAL REPORTING FISCAL STANCE FISCAL YEARS GDP GDP PER CAPITA GOVERNMENT PERFORMANCE GOVERNMENT SPENDING GROWTH RATE HEALTH EXPENDITURE HEALTH SECTOR HEALTH SPENDING HIPC HOLDING INCOME GROUPS INCOME LEVEL INCOME LEVELS INCOME TAX INSTITUTIONAL DEVELOPMENT INTEREST RATES INTERNATIONAL BANK INTERNATIONAL FINANCIAL CRISIS INVESTING MACRO-ECONOMIC POLICIES MACROECONOMIC FRAMEWORK MEDIUM-TERM EXPENDITURE MEDIUM-TERM EXPENDITURE FRAMEWORKS MIDDLE INCOME COUNTRIES MONETARY FUND NATIONAL INCOME NATIONAL POLICY NATIONAL POLICY PRIORITIES NATURAL RESOURCES OFFICIAL DEVELOPMENT ASSISTANCE OPERATIONAL EFFICIENCY OVERHEAD COST PER CAPITA INCOME PER CAPITA INCOMES PERFORMANCE OF GOVERNMENT POLITICAL ECONOMY POLITICAL STABILITY POLITICIANS PROGRAMS PUBLIC PUBLIC EXPENDITURE PUBLIC EXPENDITURE REVIEWS PUBLIC EXPENDITURE TRACKING PUBLIC FINANCE PUBLIC FINANCIAL MANAGEMENT PUBLIC FINANCIAL MANAGEMENT SYSTEMS PUBLIC FUNDS PUBLIC RESOURCES PUBLIC SECTOR PUBLIC SECTOR PERFORMANCE PUBLIC SECTOR SPECIALIST PUBLIC SERVICE PUBLIC SERVICE DELIVERY PUBLIC SERVICES PURCHASING POWER REAL GDP REALLOCATIONS REFORM APPROACHES REFORM STRATEGIES RESOURCE AVAILABILITY RETURN RETURNS REVENUE VOLATILITY SECTORAL ALLOCATIONS SECTORAL BUDGET SECTORAL EXPENDITURE SOCIAL WELFARE SUSTAINABLE FISCAL BALANCE TAX ADMINISTRATION TAX POLICY TAX REVENUE TERRORISM TOTAL EXPENDITURE TOTAL REVENUE TRANSPARENCY UNCERTAINTY WEALTH This paper explores two relationships, first between country characteristics and the quality of public financial management ('drivers'), and second between the quality of public financial management systems and expected outcomes ('effects'). On the influence of country characteristics, the paper investigates economic factors (income level, growth, and resource dependency), population size, levels and sources of revenue, and three macro-political characteristics -- political stability, regime type, and the presence of programmatic parties. These characteristics jointly explain about 40 percent of the variation in the quality of public financial management across countries. Furthermore, first-difference analysis suggests that countries with lower initial public financial management quality improve at a higher rate over time. This implies that structural factors set the scene for the likelihood of better or worse performance, but also that there is substantial variation among countries sharing certain characteristics and reform opportunities exist even in unfavorable environments. Methodologically, a key limitation is that the direction of causality cannot be fully addressed with the types of data available. On the effects of the performance of public financial management, the paper finds evidence that stronger performance results in better budget credibility, but not in lower deficits. Furthermore, there is no clear evidence regarding operational efficiency. The observed disconnect could be caused by missing complementary state capacities, measurement problems, or other issues, which need to be explored further. Overall, the findings are consistent with the assumption that stakeholder incentives and constellations matter and that reform approaches combining good technical calibration and political economy considerations are likely to influence success in strengthening public financial management. 2014-12-03T20:08:00Z 2014-12-03T20:08:00Z 2014-11 http://documents.worldbank.org/curated/en/2014/11/20346313/strengthening-public-financial-management-exploring-drivers-effects http://hdl.handle.net/10986/20631 English en_US Policy Research Working Paper;No. 7084 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Group, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |