Strengthened Approach and PFMPR Case Study Ukraine Bill
Strengthened Approach and PFM-PR Case Study: Ukraine Bill Dorotinsky The World Bank Brussels, October 2006
Outline n Background and Context Impetus for Change n Timeline n Recent Bank Support n n Current Status Strategy Approach
Ukraine Impetus of Change n Immediate: n Late 2004 Orange Revolution n n March 2005 Budget revision n n New government eager to move forward Inadequate access to data on spending, revenues Low cooperation across PFM agents Minister unable to fulfill tasks Medium to Long-Term n EU Harmonization, conforming to EU standards
Timeline End 2004 Orange Revolution April White Paper on Internal Audit Reform 2004 Govt call for WB support in PFM WB advisory team on -ground April MOF Reorg Decree Govt Change Treasury merged into Mo. F 2005 WB support to reorg implementa tion PFM/Mo. F Reform strategy development 2006 PFM Project Prep March Electio n
Recent Bank Support n n Advisory support to White Paper on Internal Control Reform Advisory support to Mo. F Reorganization n n Research, paper, advice Internal Mo. F survey of staff on operational problems Treasury II (follow-on to successful interim Treasury project) converted to PF Modernization Project, supporting Mo. F integration Finalizing PEFA assessment to feed into reform strategy Partnership with Government, supporting Governmentled agenda
Current Status n April 2005 Presidential Decree reorganizing Mo. F, putting Treasury, internal audit, Tax and Customs under Mo. F oversight. n n n Treasury actually merged into Mo. F in December 2005. Mo. F developing PFM reform vision (White Paper), Mo. F mission statement, to guide reforms Mo. F developing project components March 2006 Election – no government until August New Government taking reforms forward n n Meets their needs, regardless of politics Broad support in Mo. F kept work progressing, issues live
Approach n Mo. F internal working group, composed of division heads, led by two Deputy Ministers n n Already overcoming traditional stovepipes Institutionalizing reforms Active Bank advisory support to Mo. F Bank lead in donor coordination on PFM, supporting Government chaired DCG n 44 separate PFM donor assistance projects, spanning 12 donor organizations from 9 countries
Strategy n n Meet Government needs, help solve problems faced today Use advice, papers, workshops and training creatively n n n Use AM’s to send clear messages, summarize advice Provide options, pro/cons, no recommendations Share knowledge liberally WB working as part of reform working group, regular presence on-site Multi-level counterparts, from Minister, DM’s, to Directors PEFA PFM-PR to n n n give complete picture benchmark system operation, serve as baseline for measuring reform strategy impact serve as baseline for donor interventions
PFM-PR n Fit naturally into work with Mo. F n n n Valuable input into reform strategy development Most data obtained in normal course of work Results shared real-time Formal report for record-keeping, but value already added Donors sharing information, using PFM-PR
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