Strengthening the Bank

1
Supply-side I Improving PFM A Platform Approach
Platform 4 Integration of accountability and
review processes for both finance and performance
management
Cambodia Sequence of Platforms
Enables more accountability for performance
management
Enables focus on what is done with money
Platform 3 Improved linkage of priorities and
service targets to budget planning and
implementation
Broad Activities
Enables a basis for accountability
Platform 2 Improved internal control and public
access to key fiscal information to hold managers
accountable

• Full design of FMIS
• Develop IT
• Management
• Strategy
• Initial design of asset register

Platform 1 A credible budget delivering a
reliable and predictable resource to budget
managers
Broad Activities

• Re-design budget cycle (e.g. MTEF)
• Pilot program based budgeting budget analysis
• Further fiscal
• Decentralization

Broad Activities

• Re-design
• Budgeting
• Classification system
• Initial design of FMIS for core business
  processes
• Strengthen external audit and define internal
  audit function

Broad Activities

• Integration of budget (recurrent capital
  budgets)
• Strengthen macro and revenue
• Forecasting
• Streamline spending processes

Source See Study of measures used to address
weaknesses in Public Financial Management systems
in the context of policy-based support, by Peter
Brooke, at www.pefa.org
2
Governance sub-systems and Governance Outcomes
CORRUPTION CORRUPTION2 POLICY POLICY 2
CPIA 13-Budget -.113 -.180 .366 .365
CPIA 15-Public Administration .248 .423 .285 .210
KK Voice and Accountability .152 .342 .090 .066
KK Rule of Law .545 .090
CPIA 12-Rule of Law ---- .285 ---- .280
Executive Constraints -.194 -.231 -.047 -.048
R-squared 0.74 0.74 0.77
99 95 90 significance