Central Finance Agencies (CFA) of countries are pivotal to the Public Finance Management (PFM) reform process. Thus, the capabilities – not just capacities – of CFAs are critical to bringing about transformation. Strengthening CFA capabilities, and thereby driving government performance, is not a mere technical issue but requires a broader political economy perspective that captures the complex interactions which directly and indirectly relate to a CFA. As the World Bank continues to support PFM reform processes in various client countries across the world, a deeper understanding of the role and capabilities of CFAs as the central element in these transformations is essential. This paper proposes one such framework – one that approaches the challenge of enhancing the capabilities of CFAs through a political economy perspective.
This report is discussed in Devpolicy Policy Brief 3 by Björn Dressel, January 2012.
World Bank 2011, ‘Enhancing the capabilities of central finance agencies: Synthesis report’, Report, Development Policy Centre, Crawford School of Public Policy, Australian National University.