Asian Regional Seminar on Public Financial Management

PFM Reforms: The lessons learnt -promises and tears

The Platform Approach Sok Saravuth, Ministry of Economy and Finance, Cambodia

Phnom Penh, 25 November 2014

Outline

• What Is Platform Approach?

• Why Platform Approach? The Case of Cambodia.

• Issues for Discussion.

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What Is Platform Approach?

• Assessing the whole system and developing a comprehensive reform program.

• Improving in all key areas of the system in a step by step approach.

• Other approaches: Piece meal and Comprehensive.

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Why Platform Approach? The Case of Cambodia

• Struggling with unclear direction with the piece meal approach. • Cash shortage was the tangible major problem of the system: (Budget

Credibility – Financial Accountability – Budget Policy Linkages – Performance Accountability).

• Was evolved/found during the formulation of the reform program. • Proved to be very effective for PFMRP in Cambodia • Government commitment with strong leadership and management of MEF

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• Stage3: CAP3 (2016-2020)

• Stage4: CAP4 (2020-2025)

• Stage2: CAP2 (2009-2015)

• Stage1: CAP1 (2005-2008)

Platform 1: Budget Credibility

Platform 2: Financial Accountability

Platform 3: Budget-Policy

Linkages

Platform 4: Performance Accountability

Cambodia’s 4 Platforms 4 Stages Approach

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PEFA Performance Measurement Framework

B. Comprehensiveness and Transparency

(PI: 5-10)

C(4)External scrutiny and

audit (PI: 26-28)

C(1) Policy-based budgeting (PI: 11-12)

C(2)Predictability and control in budget

execution (PI: 13-21)

C(3)Accounting, Recording and

Reporting (PI: 22-25)

C. (1,2,3,4) Budget Cycle

Budget Credibility

(PI: 1-4)

A. PFM Outturns

D. Donor Practices (PI: 1-3)

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Issues for Discussion

• PROS: 1) The whole system is understood, easy to set clear direction and sequencing reform program in a step by step approach within all key areas of the system as a whole, 2) Commitment and ownership are easier to build, 3) Support is easier to gather.

• CONS: 1) Too much work at the same time, 2) Difficulty of coordination, 3) Easy to get lost without clear direction, good sequencing, and effective monitoring mechanism.

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k,rbg3mn THANK YOU

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