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Enhancing the Capability of Central Finance Agencies

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  • Allen, Richard

    ()
    (World Bank)

  • Grigoli, Francesco

    ()
    (World Bank)

Abstract

A well-organized and effective finance ministry and its associated central finance agencies (CFAs) are essential to good fiscal outcomes. Recent studies of CFAs in selected low-income countries demonstrate that their organizational structure varies widely and that decision making on public finance is strongly influenced by political economy factors. This note presents some common themes arising from the case studies and provides some descriptive evidence about the organizational structure of the CFAs. This note also includes evidence of a “U-curve” pattern in the development of the organizational structure of CFAs over the long term. It confirms that political economy analysis, though difficult to apply in practice, is highly relevant in the development of reform strategies for strengthening CFAs and public financial management systems.

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Bibliographic Info

Article provided by The World Bank in its journal Economic Premise.

Volume (Year): (2012)
Issue (Month): 73 (January)
Pages: 1-7

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Handle: RePEc:wbk:prmecp:ep73

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Keywords: finance ministry; central finance agencies; fiscal; public finance; political economy; low-income countries; development; reform; public financial management; World Bank;

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  1. Fritz, Verena & Hedger, Edward & Lopes, Ana Paula Fialho, 2011. "Strengthening Public Financial Management in Postconflict Countries," World Bank - Economic Premise, The World Bank, issue 54, pages 1-7, April.
  2. Richard Allen, 2008. "Reforming Fiscal Institutions: The Elusive Art of the Budget Advisor," OECD Journal on Budgeting, OECD Publishing, vol. 8(3), pages 1-9.
  3. Hasnain, Zahid, 2011. "Incentive compatible reforms : the political economy of public investments in Mongolia," Policy Research Working Paper Series 5667, The World Bank.
  4. Verena Fritz & Edward Hedger & Ana Paula Fialho Lopes, 2011. "Strengthening Public Financial Management in Postconflict Countries," World Bank Other Operational Studies 10097, The World Bank.
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