Public Financial Management and Internal Control: The Importance of Managerial Capability for Successful Reform in Developing and Transition Economies

This open-access book emphasizes the 'downstream' aspect of public financial management (PFM) and argues that improvements in PFM/IC will only come from a recognition of the importance of management quality. Management reform is a necessary precondition for the successful implementation of new techniques, and the benefits of PFM/IC flow from an improved quality of management. The book outlines why PFM/IC reform has not been successful in developing and transition economy countries and suggests a new approach that involves delegating operational management, developing financial management and accountability arrangements, and reconsidering personnel policies, penalty and sanction arrangements. Managerial training for the civil service will be a key requirement, and reform may impact traditional cultural practices.

Format: Paperback / softback
Length: 579 pages
Publication date: 28 September 2023
Publisher: Springer International Publishing AG

This open-access book delves into the crucial 'downstream' aspect of public financial management (PFM), exploring how public organizations utilize public resources. It posits that true advancements in PFM/internal control (IC) will only arise from a profound understanding that what truly matters is the quality of management. Management reform serves as a vital prerequisite for the effective implementation of numerous innovative techniques. However, the true benefits of PFM/IC stem from an enhanced quality of management.

Despite extensive efforts, the reform of public financial management and internal control (PFM/IC) in developing and transition economy countries has yielded limited success in improving the quality of public service delivery and the efficient utilization of public resources. This book aims to shed light on the underlying reasons for this lack of progress and propose a fresh approach. The analysis presented herein holds particular relevance, particularly in the context of constrained national budgets and reduced international aid budgets.

These management changes encompass various aspects, including the political/official relationships, management structures, budgetary and accounting arrangements, and the interrelationships between the Ministry of Finance and other ministries. They necessitate the delegation of operational management, advancements in financial management, improvements in accountability arrangements, and a reevaluation of personnel policies, penalty and sanction arrangements. Managerial training for the civil service will be a critical prerequisite. Reform may have implications for traditional cultural practices.

It is important to note that these changes are interconnected and should be coordinated to ensure a holistic and effective transformation. By prioritizing management quality and implementing comprehensive reforms, public organizations can enhance their effectiveness, efficiency, and accountability, ultimately contributing to the betterment of society.

Weight: 914g
Dimension: 235 x 155 (mm)
ISBN-13: 9783031350689
Edition number: 1st ed. 2024