PEFA Performance Measurement Framework Case Study - Ghana

1
PEFA Performance Measurement FrameworkCase
Study - Ghana

• Presentation by Marcelo Andrade
• The World Bank
• January 18, 2007

2
Outline

• Ghana - Performer with potential
• PEFA Assessment - Ghana Context
• Dos and Donts
• Working with Government
• Working with Donors
• Working across Networks

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Ghana Performer with Potential

• Open society, political transition in 2000, first
  in AU to complete Africa Peer Review Mechanism
• Social capital, will achieve poverty MDG
• Top among peers, but not at its potential

4
Structural adjustment since mid-80s. Poverty
down, growth sustained, economy same

• GPRS1 (2003 05) Growth accelerated, macro
  stabilization, enrolment up, debt relief
• GPRS2 (2006-09) Stronger focus on growth and
  structural transformation. Three key pillars
• Private-sector driven growth, Human development,
• Governance and Civic responsibility
• Countrys goal - Middle-Income status by 2015
• Challenges - strategic depth, results-focus,
  resourcing

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PEFA Assessment Ghana Context

• MDBS Partnership since 2003 - Focus on key GPRS
  actions and outcomes
• Many GPRS1 goals achieved. GBS predictability
  improved (300/year from ten MDBS partners,
  close to a third of resource flows representing
  about 10 of GDP), plus debt relief.
• Policy Dialogue - Budget centrality, strengthen
  PFM
• HIPC AAP (2001 1 out of 15 benchmarks met 2005
  8 out of 16 met).
• First time - 2006 Budget approved before
  beginning of FY. Audited 2005 Consolidated Fund
  accounts submitted to Parliament in June 2006.
• External Review of PFM (ERPFM) annual
  assessment within MDBS framework. Objectives
• developmental - assist Government monitor its PFM
  reforms. If need be, suggest options/actions to
  address challenges. Align with budget process.
• fiduciary - inform donors providing budget
  support about countrys progress in strengthening
  its PFM systems

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• GoG PFM Action Plan adopted in January 2006
• PEFA assessment part of 2006 ERPFM
• Link to Monitoring of OECD/DAC Paris Declaration
  on Aid Effectiveness (2005)

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PEFA PMF - Dos and Donts

• Working with Government
• PMF - not only about rating countries.
  Measurement leg of Strengthened Approach to PFM
  reforms. Country-led reform agenda and
  coordinated donor support program also matter
• How to conduct assessment?
• (i) external assessment without Govt. involvement
  - likely to generate antibodies, particularly if
  assessment is perceived to be linked to
  continuation of budget support
• (ii) self assessment if insufficiently guided,
  might lead to unduly rosy ratings

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• (iii) Trick in Ghana middle course. ERPFM team
  facilitated discussion on the standards
  underpinning each indicator. Joint assessment on
  the level of existing performance. Areas in which
  opinions diverted recorded in the PFM PR
• Focus on PFM systems, not budget policy
• PEFA valuable to help prioritise, sequence reform
  measures. Helped to identify quick wins
• Score in line with PEFA guidelines and
  information and documentary evidence

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• Triangulation of information, where necessary
• Govt. ownership is key. Stick to principle that
  assessment is value neutral
• Plan carefully the exercise and field work

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Working with Donors

• PEFA high level indicators - international
  standards, more demanding than the HIPC-AAP. Need
  to be understood in the proper context
• PEFA assessment not intended to be used as a
  scorecard for conditionalities

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• Key to quality of PFM PR is team capabilities and
  how assessment is conducted. Not whether is stand
  alone or integrated in a broader analytical
  product
• PFM PR - if part of broader analytical product,
  presentation as a free standing report
  facilitates use as common information pool

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Working across Networks

• Working as a team, key to success
• Be responsive to PEFA Secretariats quality
  reviews
• PEFA PMF learning curve key to quality