Strengthened Approach
and PFM-PR
Case Study: Ukraine
Bill Dorotinsky
The World Bank
Washington, DC
January 2007
Outline
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Background and Context
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Impetus for Change
Timeline
Recent Bank Support
Current Status
Strategy
Approach
Ukraine
Impetus of Change
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Immediate:
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Late 2004 Orange Revolution
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March 2005 Budget revision
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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
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EU Harmonization, conforming to EU standards
Timeline Treasury
End 2004
Orange
Revolution
April White
Paper on
Internal
Audit
Reform
2004
Govt call for
WB support
in PFM
WB
advisor
y team
onground
merged
into MoF
April
MOF
Reorg
Decree
Gov’t
Chang
e
Aug
New
Gov’t
2005
WB support
to reorg
implementa
tion
PFM/MoF
Reform
strategy
development
2006
PFM
Project
Prep
March
Electio
n
Recent Bank Support
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Advisory support to White Paper on Internal Control
Reform
Advisory support to MoF Reorganization
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Research, paper, advice
Internal MoF survey of staff on operational problems
Treasury II (follow-on to successful interim Treasury
project) converted to PF Modernization Project,
supporting MoF integration
Finalizing PEFA assessment to feed into reform strategy
Partnership with Government, supporting Governmentled agenda
Current Status
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April 2005 Presidential Decree reorganizing MoF, putting
Treasury, internal audit, Tax and Customs under MoF
oversight.
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Treasury actually merged into MoF in December 2005.
MoF developing PFM reform vision (White Paper), MoF
mission statement, to guide reforms
MoF developing project components
March 2006 Election – no government until August
New Government taking reforms forward
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Meets their needs, regardless of politics
Broad support in MoF kept work progressing, issues live
Approach
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MoF internal working group, composed of
division heads, led by two Deputy Ministers
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Already overcoming traditional stovepipes
Institutionalizing reforms
Active Bank advisory support to MoF
Bank lead in donor coordination on PFM,
supporting Government chaired DCG
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44 separate PFM donor assistance projects, spanning
12 donor organizations from 9 countries
Strategy
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Meet Government needs, help solve problems faced
today
Use advice, papers, workshops and training creatively
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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
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give complete picture
benchmark system operation, serve as baseline for measuring
reform strategy impact
serve as baseline for donor interventions
PFM-PR
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Fit naturally into work with MoF
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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