Panel discussion on “Maximizing the impact of institutional support for public finance modernization in fragile states. “

Rationale: Public Financial Management (PFM) in Africa is a critical component of governance and development, serving as the cornerstone for efficient and effective resource allocation, revenue generation, expenditure management, and accountability. Across the continent, governments rely on PFM systems to mobilize domestic resources, fund essential public services, and promote socioeconomic development. However, African countries face numerous challenges in strengthening their PFM frameworks and practices. These challenges include limited fiscal transparency and accountability, weak revenue administration systems, inadequate budget execution and oversight mechanisms, and a lack of capacity and technical expertise in financial management institutions. Indeed, most governments, especially those of countries in fragile situations, still struggle to mobilize substantial resources to meet infrastructure and human capital investment needs due to inadequate revenue mobilized, inefficiency in utilization, and corruption, among others.
Independent Development Evaluation (IDEV) at the African Development Bank Group (AfDB) recently conducted an evaluation synthesis on Public Financial Management, and an impact evaluation of the AfDB’s Public Finance Modernization Support Project (PAM-FP) in the Democratic Republic of Congo (DRC). The synthesis drew from PFM experiences in low and middle-income countries in Africa and other parts of the world, with particular attention to AfDB interventions where possible, to identify lessons related to the design, contextualization, measurement, sustainability, and effective partnership coordination of interventions supporting PFM development.
The AfDB’s PAM-FP project, financed through a UA 10 million grant (USD 15 million) from the African Development Fund (ADF), was implemented over the 2012-2017 period. The project sought to improve public financial management in five DRC provinces (Katanga, Tshopo, Ituri, Kongo-Central and Maniema) by enhancing the effectiveness of tax revenue mobilization and the efficiency of public expenditure management in five out of the eleven provinces in the country. IDEV’s evaluation examined the project’s impact on domestic resource mobilization, the efficiency of public expenditure, working conditions of tax administration agents and officers, tax administration service quality, corruption, sustainability of project achievements, and partnerships within the five provinces covered by the project vis-à-vis the other provinces not covered by the project.
For this year’s gLOCAL week, IDEV seeks to explore using evaluative knowledge to advocate for PFM policy reforms that create a conducive environment for transformational change. By focusing on key areas such as the appropriateness, effectiveness, and sustainability of PFM interventions; and then delving into a particular focus on domestic resource mobilization, public debt management through public expenditure efficiency, tax administration service quality, countering of corruption, and sustainability, the discussion will provide actionable insights into the effectiveness and challenges of PFM initiatives in Africa, especially in countries in fragile situations.

Purpose of the event: The session seeks to share findings, lessons, and recommendations from a PFM evaluation synthesis and an impact evaluation of PFM reforms. Specifically, the session will:
• Deliberate on PFM interventions, focusing on the factors that contribute (positively or negatively) to their outcomes and the sustainability of their results.
• Demonstrate the return on investment associated with PFM interventions, especially in fragile situations, to guide policy interventions geared at improving economic governance.
• Identify good practices needed to scale-up PFM institutional support projects.

Focus:
• Impact of PFM institutional projects on policy reforms
• Key policy recommendations to drive PFM reforms for transformational change.
• Effective use of evaluation findings to influence policy decisions and institutional reforms.
• Role of various stakeholders - governments, development partners and civil society - in utilizing evaluation insights to advocate for policy changes.
• Challenges and opportunities in leveraging evaluation as a tool for advocacy, particularly, in promoting transparency, accountability, and good governance in public financial management.
Target audience: The session will bring together a wide range of participants, including:
• Technical PFM officers, evaluators, policy and decision-makers from African governments
• Researchers, Think-tanks, and civil society - ATAF, African Tax Research Network, CABRI
• Development Finance Institutions: IMF, WB, FCDO, GIZ, EU, AFD, UNDP, USAID, Belgium Development Agency, etc.
• The evaluation community: AfrEA, ECG, OECD/DAC EvalNet, EvalYouth, AfrEA-YEE

Format: The proposed format is a virtual panel discussion via Zoom, involving the target audience. The session would commence with a brief self-introduction by the Moderator and opening remarks from AfDB’s Evaluator General; then two presentations; overall views from a discussant, followed by a panel discussion and Q&A , then closing remarks by the moderator.

Language: The session will be both in French and English, with simultaneous interpretation (French/English) available throughout the session. Panelists will have the flexibility to speak in their preferred language.