Participatory poverty assessments (PPAs) are broadening our understanding of both poverty and the policy process. The limitations of quantitative measurements of well-being have long been recognized, and there is a rich tradition of anthropological and sociological work that uses a range of techniques to achieve an in-depth understanding of poverty for project work. In this tradition, PPAs use a systematic participatory research process that directly involves the poor in defining the nature of poverty, with the objective of influencing policy. This process usually addresses both traditional concerns, such as lack of income and public services, and other dimensions, such as vulnerability, isolation, lack of security and self-respect, and powerlessness.
Including the poor in policy dialogue has great potential for creating better poverty reduction policies. The original rationale of the participatory poverty assessments (PPAs) was to influence the policy dialogue by collecting information on the poor’s perceptions of poverty. Most PPAs have achieved this objective to some degree, but with substantial variation in the level of impact. The PPAs with the greatest impact tended to be those that implicitly or explicitly had more ambitious objectives. It is useful to assess impact in relation to three objectives:
This chapter identifies good practices that should be considered when undertaking participatory policy research for policy change. Emerging good practice builds on the diverse impacts of key variables discussed in the previous chapter. It is divided into three main areas in which issues are similar and linked: first, issues to be considered from an institutional perspective within the World Bank;1 second, good practice when managing a PPA in country, at the national level, including how to open up the dialogue in participatory policymaking; and third, emerging good practice in conducting participatory research with the poor at the community level, and the principles behind this method of data collection. There is no unconditional good practice in this type of work because the best approach will be determined by the context. However, box 8 gives some suggestions for good practice and minimum standards that have emerged from experience with the Bank’s PPAs. These issues are then discussed in more detail throughout the chapter.
The recent introduction of the poverty reduction strategy (PRS) represents a significant shift in development thinking. This chapter explains the background to the development of the PRS.1 It then shows how the PPA is relevant to the development of the poverty reduction strategy by focusing on four key features of the PRS that benefit from direct consultations with the poor: poverty analysis, consultation during formulation of the strategy, monitoring of implementation, and evaluation of outcomes.
The second edition of this book outline show to include the poor using the Participatory Poverty Assessment (PPA) method. This method was developed by the World Bank in partnerships with NGOs, governments, and academic institutions, and has been implemented in over 60 countries worldwide duringthe last decade. This book also draws on new PPA case examples. Joint publication with the World Bank.
Public financial management (PFM) plays a key role in the sound allocation and use of public resources and macroeconomic management. This is why PFM modernization can have a substantive impact on the effectiveness, efficiency, and transparency of public spending. The call to upgrade institutional, functional, and technological frameworks of PFM systems in Latin American countries has been significant as governments seek to achieve greater coverage, reliability, and timeliness of financial information. There is also pressure to streamline procedures and implement more sophisticated business models and technologies in national treasuries, debt management offices, accounting departments, and budget and procurement agencies.
Treasury management is one of the areas of public financial management (PFM) that has most improved over the last 20 years at the international level, when measured in terms of incorporating new practices and expanding the use of information technology. These efforts have been widely supported by technical assistance projects provided by international organizations (Dener, Watkins, and Dorotinsky, 2011). A specific set of performance indicators that adequately addresses the different aspects of good treasury management, however, has yet to be developed. This chapter, therefore, discusses and proposes a set of indicators for this area.
This chapter identifies the main cash and debt management (CDM) functions of a ministry of finance (MoF), explains the importance of interaction and coordination between them, and sets out how this can be best achieved under various institutional structures. Although the chapter discusses the CDM items in combination, it approaches the interactions primarily from the perspective of cash management and the wider treasury. It does not discuss debt management policies in detail, which would require a more extensive literature (Bangura, Kitabire, and Powell, 2000; Shah, 2007).1 The chapter also offers a number of country examples, describes how cash and debt units are organized in Latin America, and discusses the usefulness that integration has on both functions in one unit.
Israel Fainboim Yaker, Claudiano Manoel de Albuquerque, and José Adrián Vargas
Good public financial management (PFM) is about ensuring that all of a government’s cash is available for management by the treasury. This requires creating a treasury single account (TSA), which contributes to the efficient use and control of these financial resources. Establishing a TSA is essential in modern treasury management. It enables the centralization of public funds and their consolidated management. It also acts as a catalyst and facilitator for cash management reform by transforming treasuries and allowing them to go beyond their traditional payer role to perform the functions of a modern financial manager by adopting efficient planning, forecasting, financing, and financial investment mechanisms, as well as actively managing cash.
Sound public financial management (PFM) requires good practices across all its components. The recent global economic crisis has refocused attention on the potential role of public institutions to catalyze economic growth despite the extreme pressures on public finances. Most countries in Latin America are carrying out important PFM reforms that, among other objectives, aim to build a better regulatory framework to provide legal certainty and ensure confidence in public institutions. These reforms include modernizing institutions such as national treasuries, developing or improving integrated financial management information systems (IFMIS), and creating new tools for a more reliable budget—discussed in other chapters of this book.