Mali - Economic Policy and Public Finance Management Credit
The Economic Policy and Public Finance Management Credit (EPPFMC) was part of the Country Assistance Strategies (CAS) base case lending scenario of budget support operations. The thematic coverage of the EPPFMC focused on policy and institutional i...
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| Format: | Brief |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/01/9085546/mali-economic-policy-public-finance-management-credit http://hdl.handle.net/10986/9541 |
| Summary: | The Economic Policy and Public Finance
Management Credit (EPPFMC) was part of the Country
Assistance Strategies (CAS) base case lending scenario of
budget support operations. The thematic coverage of the
EPPFMC focused on policy and institutional issues in macro,
public finance, and selected sector areas. It complemented
self-standing sector investment operations covering health,
education, rural infrastructure, agricultural
competitiveness, support to growth, and transport corridors.
The EPPFMC aimed to: (i) promote growth and poverty
reduction through (a) strengthening macroeconomic and fiscal
management and (b) implementing key actions underpinning
Mali's long-term growth and competitiveness; and, (ii)
improve efficiency, accountability, and transparency in
public finance management through strengthening (a) public
expenditure management at central and decentralized levels
and (b) the public procurement system. Some of the lessons
are as follows: (a) The operation demonstrated the merits of
including in Mali's policy-based lending operations,
policy and institutional reform measures complementary to
and supportive of ongoing sector operations. (b) For a
country such as Mali, with weak institutional and
administrative capacities, it is important to be realistic
on what can be achieved, and be selective on which issues
are undertaken within a short timeframe. This lesson was
adhered to in the EPPFMC. (c) Policy measures should be
better matched to the objectives sought. In the Mali cotton
case, although the cotton reform actions were and continue
being implemented, the cotton sector remains in a precarious
financial situation due not only to weak management but also
to (a) stagnant or adverse international cotton prices and
(b) an appreciating currency, resulting in lower
local-currency denominated revenues on marketed cotton. |
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