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PEFA in Latin America, Seven Years of Implementation The Inter-American Development Bank’s Experience
Katharina Falkner-Olmedo
Division Chief of the Operations Financial Management and Procurement Services OfficeVice Presidency for Countries (VPC)
AR
BLBA
BO
BH
CH
DR
EC
ME
NI
GY
HA
BR
VE
JA
SU
TT
PE
PR
PN
UR
CO
ESHO
CR
GU
20 Countries – Completed*
Source: www.PEFA.org, as of November 19, 2012
PEFA IN THE REGIONPEFA IN THE REGIONCompleted and Planned PEFAs in the LAC Region – National LevelCompleted and Planned PEFAs in the LAC Region – National Level
26 IDB Borrowing Member Countries
+2 Countries – In Process
85% of IDB countries have completed a PEFA
assessment
* 10 countries have had repeat PEFA assessments
5 Countries - National PEFAs planned for 2013 and 2014
AR
BLBA
BO
BH
CH
DR
EC
ME
NI
GY
HA
BR
VE
JA
SU
TT
PE
PR
PN
UR
CO
ESHO
CR
GU
5 Countries – PEFAs completed at the Sub-national and Local levels
Source: www.PEFA.org, as of November 19, 2012
PEFA IN THE REGIONPEFA IN THE REGIONCompleted and Planned PEFAs in the LAC Region – Sub-national LevelCompleted and Planned PEFAs in the LAC Region – Sub-national Level
26 IDB Borrowing Member Countries
1 Country – 2 Sub-national PEFAs planned for 2013
PEFA IN THE REGIONPEFA IN THE REGIONPEFAs in the LAC Region – IDB Use of PEFA ResultsPEFAs in the LAC Region – IDB Use of PEFA Results
As a Donor, PEFAs help the IDB in…
Establishing a basis for dialogue with the country (one of several inputs to country strategies).
Providing a quick overview of a country’s Public Financial Management Systems.
Measuring the progress of Bank-financed reforms through the monitoring of selected indicators.
Promoting better coordination/harmonization with other donors.
The PEFA has gained importance to the IDB and the Region as a starting point for discussions related to the use of (and reliance on) country PFM systems for IDB-financed projects and PFM reform.
PEFA IN THE REGIONPEFA IN THE REGIONPEFAs in the LAC Region - IDB Use of PEFA ResultsPEFAs in the LAC Region - IDB Use of PEFA Results
Project completion
Project design
Programming
Countrystrategy
Project execution
Country Dialogue
Monitoring progress and advances
Measuring results
IDB use in country strategy, programming and project cycles
Strengthening and use of Country Systems
PEFA IN THE REGIONPEFA IN THE REGIONPEFAs in the LAC Region – the IDB’s Experience – Points to ConsiderPEFAs in the LAC Region – the IDB’s Experience – Points to Consider
Expectations management and current PEFA framework
• Uneducated readers sometimes misinterpret PEFA scope and results thinking that it is a diagnostic reflecting country performance rather than a measurement against indicators and international standards and best practices
• Donors often require additional, more in-depth information (from a fiduciary perspective) than what the PEFA provides, to determine the use of country systems, resulting in additional work and diagnostic fatigue
• Efforts to make the PEFA consistent, straightforward and quantitative, have resulted in: qualitative aspects not always being considered or the methodology not as adaptable to “non-traditional” situations (also relates to point below regarding consultants)
• Inclusion of ID-19 related to Procurement continues to present challenges for the technical team in coordination, receiving timely data, overlap with MAPS, etc.
• Translation of implementing guidance into Spanish could be more timely and complete
PEFA IN THE REGIONPEFA IN THE REGIONPEFAs in the LAC Region – the IDB’s Experience – Points to Consider (cont.)PEFAs in the LAC Region – the IDB’s Experience – Points to Consider (cont.)
Consultants and quality of the process • Selection of consultants is critical, in terms of applicable technical expertise and the ability to produce a
timely and quality report.
Length of the process and sharing preliminary results
• Process can be too long, resulting in greater costs to the government and donors and a report that becomes quickly outdated.
• If donor not part of PEFA exercise and report not published, donor may never see the results and need to
perform additional work.