Capacity Constraints and Public Financial Management in Small Pacific Island Countries

Drawing on Public Expenditure and Financial Accountability assessment scores from 118 countries, this paper provides the first comparative analysis of public financial management performance in small Pacific Island Countries (PICs). It applies a To...

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Main Authors: Haque, Tobias A., Knight, David S., Jayasuriya, Dinuk S.
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2013
Subjects:
TAX
WEB
Online Access:http://documents.worldbank.org/curated/en/2012/12/17103609/capacity-constraints-public-financial-management-small-pacific-island-countries
http://hdl.handle.net/10986/12207
id okr-10986-12207
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCESS TO INFORMATION
ACCOUNTABILITY FRAMEWORK
ACCOUNTING
ACCOUNTING STANDARDS
AGGREGATE EXPENDITURE
AGGREGATE FISCAL
AGGREGATE REVENUE
ANNUAL REPORTING
ARREARS
AUDIT OFFICE
AVAILABILITY OF DATA
BEST PRACTICE
BINDING CONSTRAINT
BLUEPRINT
BOOKMARK
BRAIN DRAIN
BUDGET ALLOCATIONS
BUDGET CIRCULAR
BUDGET COMPREHENSIVENESS
BUDGET DOCUMENTATION
BUDGET ESTIMATES
BUDGET EXECUTION
BUDGET PREPARATION
BUDGET PROPOSALS
BUDGET SUPPORT
BUDGET SYSTEMS
BUDGETARY EXPENDITURE
BUDGETARY INSTITUTIONS
BUDGETING
CAPACITY BUILDING
CAPACITY CONSTRAINTS
CAPACITY INDICATORS
CAPITAL SHORTAGES
CASH BALANCES
CASH FLOWS
CENTRAL AGENCIES
CENTRAL GOVERNMENT
CITIZENS
COMPETITIVE PROCUREMENT
CUSTOMS
DEBT
DEBT DATA
DEBT SUSTAINABILITY
DEVELOPING COUNTRIES
DEVELOPMENT ASSISTANCE
DEVELOPMENT BANK
DEVELOPMENT GOALS
DEVELOPMENT OBJECTIVES
DEVELOPMENT POLICY
DISBURSEMENTS
DONOR AGENCIES
DONOR FLOWS
ECONOMIC DEVELOPMENT
ECONOMIC GROWTH
ECONOMIC PERFORMANCE
ECONOMIC REFORM
ECONOMIES OF SCALE
EXTERNAL ACCOUNTABILITY
EXTERNAL ASSISTANCE
FINANCE MINISTRIES
FINANCIAL ACCOUNTABILITY
FINANCIAL MANAGEMENT CAPACITY
FINANCIAL RESOURCES
FINANCIAL STATEMENTS
FISCAL DATA
FISCAL FORECASTS
FISCAL INFORMATION
FISCAL OUTTURNS
FISCAL POSITION
FISCAL YEARS
FRAUD
FUNCTIONALITY
FUTURES
GLOBALIZATION
GOOD GOVERNANCE
HUMAN CAPITAL
HUMAN RESOURCES
IMPACT OF POPULATION
IMPACTS OF POPULATION
INCOME LEVEL
INCOME LEVELS
INFRASTRUCTURE PROJECTS
INSTITUTIONAL DEVELOPMENT
INTERNAL AUDIT
INTERNAL AUDIT FINDINGS
INTERNAL AUDIT FUNCTION
INTERNAL CONTROL
INTERNAL CONTROLS
INTERNATIONAL BANK
INTERNATIONAL CAPACITY
INTERNATIONAL COMPARISONS
INVESTING
INVESTMENT EXPENDITURE
ISSUANCE
ISSUANCE OF GUARANTEES
JOB OPPORTUNITIES
JOB TRAINING
LABOR MARKET
LABOR MARKETS
LEGISLATIVE BUDGET
LOCAL CAPACITY
MACROECONOMIC MANAGEMENT
MACROECONOMIC VOLATILITY
MANAGEMENT SYSTEMS
MARGINAL EFFECTS
MARKETABLE SKILLS
MIGRANT
MIGRATION
MIGRATION DATA
MIGRATION FLOWS
MINISTRIES OF FINANCE
MINISTRY OF FINANCE
MISSING DATA
MULTIVARIATE REGRESSION ANALYSIS
NATIONAL DEVELOPMENT
NATIONAL GOVERNMENT
NATIONAL GOVERNMENTS
NUMBER OF MIGRANTS
NUMBER OF PEOPLE
OPEN ACCESS
OUTSOURCING
PERFORMANCE INDICATORS
PERFORMANCE MEASUREMENT
PERFORMANCES
POLICY DISCUSSIONS
POLICY IMPLICATIONS
POLICY RESEARCH
POLICY RESEARCH WORKING PAPER
POLITICAL ECONOMY
POPULATION DATA
POPULATION EFFECT
POPULATION SIZE
POPULATION VARIABLE
PORTFOLIO
POST-CONFLICT SETTINGS
POVERTY REDUCTION
PRACTITIONERS
PREPARATION OF BUDGET SUBMISSIONS
PRIVATE SECTOR
PRIVATE SECTOR DEVELOPMENT
PROCUREMENT FUNCTION
PROCUREMENT PROCESSES
PROFESSIONAL STAFF
PROGRAMS
PROGRESS
PUBLIC
PUBLIC ADMINISTRATION
PUBLIC ENTITIES
PUBLIC EXPENDITURE
PUBLIC EXPENDITURE MANAGEMENT
PUBLIC FINANCE
PUBLIC FINANCES
PUBLIC FINANCIAL MANAGEMENT
PUBLIC FINANCIAL MANAGEMENT SYSTEM
PUBLIC FINANCIAL MANAGEMENT SYSTEMS
PUBLIC SECTOR
PUBLIC SECTOR REFORM
PUBLIC SERVANTS
PUBLIC SERVICE
PUBLIC SERVICES
REFORM EFFORTS
REFORM OBJECTIVES
REFORM PROGRAMS
REGIONAL DUMMIES
REGISTRATION SYSTEM
RELATIONSHIP BETWEEN POPULATION
RELIABILITY
REMITTANCES
RESOURCE ALLOCATION
RESOURCE MANAGEMENT
RESOURCE USE
RESULT
RESULTS
RETENTION
RETURN
REVENUE COLLECTION
RICHER COUNTRIES
SERVICE DELIVERY
SKILLED STAFF
SMALL COUNTRIES
SUB-NATIONAL GOVERNMENTS
SUSTAINABILITY ANALYSIS
TARGETS
TAX
TAX ASSESSMENT
TAX COLLECTIONS
TECHNICAL ASSISTANCE
TECHNICAL CAPACITIES
TECHNICAL CAPACITY
TECHNICAL REQUIREMENTS
TECHNICAL SKILLS
TECHNICAL STAFF
TERTIARY EDUCATION
TOTAL EXPENDITURE
TRANSPARENCY
TREASURY
TRUST FUNDS
TURNOVER
UNITED NATIONS POPULATION DIVISION
WEB
WORLD POPULATION
spellingShingle ACCESS TO INFORMATION
ACCOUNTABILITY FRAMEWORK
ACCOUNTING
ACCOUNTING STANDARDS
AGGREGATE EXPENDITURE
AGGREGATE FISCAL
AGGREGATE REVENUE
ANNUAL REPORTING
ARREARS
AUDIT OFFICE
AVAILABILITY OF DATA
BEST PRACTICE
BINDING CONSTRAINT
BLUEPRINT
BOOKMARK
BRAIN DRAIN
BUDGET ALLOCATIONS
BUDGET CIRCULAR
BUDGET COMPREHENSIVENESS
BUDGET DOCUMENTATION
BUDGET ESTIMATES
BUDGET EXECUTION
BUDGET PREPARATION
BUDGET PROPOSALS
BUDGET SUPPORT
BUDGET SYSTEMS
BUDGETARY EXPENDITURE
BUDGETARY INSTITUTIONS
BUDGETING
CAPACITY BUILDING
CAPACITY CONSTRAINTS
CAPACITY INDICATORS
CAPITAL SHORTAGES
CASH BALANCES
CASH FLOWS
CENTRAL AGENCIES
CENTRAL GOVERNMENT
CITIZENS
COMPETITIVE PROCUREMENT
CUSTOMS
DEBT
DEBT DATA
DEBT SUSTAINABILITY
DEVELOPING COUNTRIES
DEVELOPMENT ASSISTANCE
DEVELOPMENT BANK
DEVELOPMENT GOALS
DEVELOPMENT OBJECTIVES
DEVELOPMENT POLICY
DISBURSEMENTS
DONOR AGENCIES
DONOR FLOWS
ECONOMIC DEVELOPMENT
ECONOMIC GROWTH
ECONOMIC PERFORMANCE
ECONOMIC REFORM
ECONOMIES OF SCALE
EXTERNAL ACCOUNTABILITY
EXTERNAL ASSISTANCE
FINANCE MINISTRIES
FINANCIAL ACCOUNTABILITY
FINANCIAL MANAGEMENT CAPACITY
FINANCIAL RESOURCES
FINANCIAL STATEMENTS
FISCAL DATA
FISCAL FORECASTS
FISCAL INFORMATION
FISCAL OUTTURNS
FISCAL POSITION
FISCAL YEARS
FRAUD
FUNCTIONALITY
FUTURES
GLOBALIZATION
GOOD GOVERNANCE
HUMAN CAPITAL
HUMAN RESOURCES
IMPACT OF POPULATION
IMPACTS OF POPULATION
INCOME LEVEL
INCOME LEVELS
INFRASTRUCTURE PROJECTS
INSTITUTIONAL DEVELOPMENT
INTERNAL AUDIT
INTERNAL AUDIT FINDINGS
INTERNAL AUDIT FUNCTION
INTERNAL CONTROL
INTERNAL CONTROLS
INTERNATIONAL BANK
INTERNATIONAL CAPACITY
INTERNATIONAL COMPARISONS
INVESTING
INVESTMENT EXPENDITURE
ISSUANCE
ISSUANCE OF GUARANTEES
JOB OPPORTUNITIES
JOB TRAINING
LABOR MARKET
LABOR MARKETS
LEGISLATIVE BUDGET
LOCAL CAPACITY
MACROECONOMIC MANAGEMENT
MACROECONOMIC VOLATILITY
MANAGEMENT SYSTEMS
MARGINAL EFFECTS
MARKETABLE SKILLS
MIGRANT
MIGRATION
MIGRATION DATA
MIGRATION FLOWS
MINISTRIES OF FINANCE
MINISTRY OF FINANCE
MISSING DATA
MULTIVARIATE REGRESSION ANALYSIS
NATIONAL DEVELOPMENT
NATIONAL GOVERNMENT
NATIONAL GOVERNMENTS
NUMBER OF MIGRANTS
NUMBER OF PEOPLE
OPEN ACCESS
OUTSOURCING
PERFORMANCE INDICATORS
PERFORMANCE MEASUREMENT
PERFORMANCES
POLICY DISCUSSIONS
POLICY IMPLICATIONS
POLICY RESEARCH
POLICY RESEARCH WORKING PAPER
POLITICAL ECONOMY
POPULATION DATA
POPULATION EFFECT
POPULATION SIZE
POPULATION VARIABLE
PORTFOLIO
POST-CONFLICT SETTINGS
POVERTY REDUCTION
PRACTITIONERS
PREPARATION OF BUDGET SUBMISSIONS
PRIVATE SECTOR
PRIVATE SECTOR DEVELOPMENT
PROCUREMENT FUNCTION
PROCUREMENT PROCESSES
PROFESSIONAL STAFF
PROGRAMS
PROGRESS
PUBLIC
PUBLIC ADMINISTRATION
PUBLIC ENTITIES
PUBLIC EXPENDITURE
PUBLIC EXPENDITURE MANAGEMENT
PUBLIC FINANCE
PUBLIC FINANCES
PUBLIC FINANCIAL MANAGEMENT
PUBLIC FINANCIAL MANAGEMENT SYSTEM
PUBLIC FINANCIAL MANAGEMENT SYSTEMS
PUBLIC SECTOR
PUBLIC SECTOR REFORM
PUBLIC SERVANTS
PUBLIC SERVICE
PUBLIC SERVICES
REFORM EFFORTS
REFORM OBJECTIVES
REFORM PROGRAMS
REGIONAL DUMMIES
REGISTRATION SYSTEM
RELATIONSHIP BETWEEN POPULATION
RELIABILITY
REMITTANCES
RESOURCE ALLOCATION
RESOURCE MANAGEMENT
RESOURCE USE
RESULT
RESULTS
RETENTION
RETURN
REVENUE COLLECTION
RICHER COUNTRIES
SERVICE DELIVERY
SKILLED STAFF
SMALL COUNTRIES
SUB-NATIONAL GOVERNMENTS
SUSTAINABILITY ANALYSIS
TARGETS
TAX
TAX ASSESSMENT
TAX COLLECTIONS
TECHNICAL ASSISTANCE
TECHNICAL CAPACITIES
TECHNICAL CAPACITY
TECHNICAL REQUIREMENTS
TECHNICAL SKILLS
TECHNICAL STAFF
TERTIARY EDUCATION
TOTAL EXPENDITURE
TRANSPARENCY
TREASURY
TRUST FUNDS
TURNOVER
UNITED NATIONS POPULATION DIVISION
WEB
WORLD POPULATION
Haque, Tobias A.
Knight, David S.
Jayasuriya, Dinuk S.
Capacity Constraints and Public Financial Management in Small Pacific Island Countries
geographic_facet East Asia and Pacific
relation Policy Research Working Paper; No. 6297
description Drawing on Public Expenditure and Financial Accountability assessment scores from 118 countries, this paper provides the first comparative analysis of public financial management performance in small Pacific Island Countries (PICs). It applies a Tobit regression model across the full cross-country sample of Public Expenditure and Financial Accountability scores and country variables to identify potential causes for the observed underperformance of Pacific Island countries relative to other countries of similar income. First, the analysis finds small population size to be negatively correlated with Public Expenditure and Financial Accountability scores, with the "population penalty" faced by small Pacific Island countries sufficient to explain observed underperformance. Second, through application of a new capacity index of Public Expenditure and Financial Accountability dimensions, it finds strong evidence in support of the hypothesis that small population size impacts scores through the imposition of capacity constraints: with a limited pool of human capital, small countries face severe and permanent challenges in accessing an adequate range and depth of technical skills to fulfill all functions assessed through the Public Expenditure and Financial Accountability framework. These findings suggest that approaches to strengthening public financial management in small Pacific Island countries should involve: i) careful prioritization of public financial management capacity toward areas that represent binding constraints to development; ii) adoption of public financial management systems that can function within inherent and binding capacity constraints, rather than wholesale adoption of "best practice" imported systems; and iii) consideration of options for accessing external capacity to support public financial management systems on a long-term basis, from regional agencies, the private sector, or donors.
format Publications & Research :: Policy Research Working Paper
author Haque, Tobias A.
Knight, David S.
Jayasuriya, Dinuk S.
author_facet Haque, Tobias A.
Knight, David S.
Jayasuriya, Dinuk S.
author_sort Haque, Tobias A.
title Capacity Constraints and Public Financial Management in Small Pacific Island Countries
title_short Capacity Constraints and Public Financial Management in Small Pacific Island Countries
title_full Capacity Constraints and Public Financial Management in Small Pacific Island Countries
title_fullStr Capacity Constraints and Public Financial Management in Small Pacific Island Countries
title_full_unstemmed Capacity Constraints and Public Financial Management in Small Pacific Island Countries
title_sort capacity constraints and public financial management in small pacific island countries
publisher World Bank, Washington, DC
publishDate 2013
url http://documents.worldbank.org/curated/en/2012/12/17103609/capacity-constraints-public-financial-management-small-pacific-island-countries
http://hdl.handle.net/10986/12207
_version_ 1764422224622649344
spelling okr-10986-122072021-04-23T14:03:05Z Capacity Constraints and Public Financial Management in Small Pacific Island Countries Haque, Tobias A. Knight, David S. Jayasuriya, Dinuk S. ACCESS TO INFORMATION ACCOUNTABILITY FRAMEWORK ACCOUNTING ACCOUNTING STANDARDS AGGREGATE EXPENDITURE AGGREGATE FISCAL AGGREGATE REVENUE ANNUAL REPORTING ARREARS AUDIT OFFICE AVAILABILITY OF DATA BEST PRACTICE BINDING CONSTRAINT BLUEPRINT BOOKMARK BRAIN DRAIN BUDGET ALLOCATIONS BUDGET CIRCULAR BUDGET COMPREHENSIVENESS BUDGET DOCUMENTATION BUDGET ESTIMATES BUDGET EXECUTION BUDGET PREPARATION BUDGET PROPOSALS BUDGET SUPPORT BUDGET SYSTEMS BUDGETARY EXPENDITURE BUDGETARY INSTITUTIONS BUDGETING CAPACITY BUILDING CAPACITY CONSTRAINTS CAPACITY INDICATORS CAPITAL SHORTAGES CASH BALANCES CASH FLOWS CENTRAL AGENCIES CENTRAL GOVERNMENT CITIZENS COMPETITIVE PROCUREMENT CUSTOMS DEBT DEBT DATA DEBT SUSTAINABILITY DEVELOPING COUNTRIES DEVELOPMENT ASSISTANCE DEVELOPMENT BANK DEVELOPMENT GOALS DEVELOPMENT OBJECTIVES DEVELOPMENT POLICY DISBURSEMENTS DONOR AGENCIES DONOR FLOWS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC REFORM ECONOMIES OF SCALE EXTERNAL ACCOUNTABILITY EXTERNAL ASSISTANCE FINANCE MINISTRIES FINANCIAL ACCOUNTABILITY FINANCIAL MANAGEMENT CAPACITY FINANCIAL RESOURCES FINANCIAL STATEMENTS FISCAL DATA FISCAL FORECASTS FISCAL INFORMATION FISCAL OUTTURNS FISCAL POSITION FISCAL YEARS FRAUD FUNCTIONALITY FUTURES GLOBALIZATION GOOD GOVERNANCE HUMAN CAPITAL HUMAN RESOURCES IMPACT OF POPULATION IMPACTS OF POPULATION INCOME LEVEL INCOME LEVELS INFRASTRUCTURE PROJECTS INSTITUTIONAL DEVELOPMENT INTERNAL AUDIT INTERNAL AUDIT FINDINGS INTERNAL AUDIT FUNCTION INTERNAL CONTROL INTERNAL CONTROLS INTERNATIONAL BANK INTERNATIONAL CAPACITY INTERNATIONAL COMPARISONS INVESTING INVESTMENT EXPENDITURE ISSUANCE ISSUANCE OF GUARANTEES JOB OPPORTUNITIES JOB TRAINING LABOR MARKET LABOR MARKETS LEGISLATIVE BUDGET LOCAL CAPACITY MACROECONOMIC MANAGEMENT MACROECONOMIC VOLATILITY MANAGEMENT SYSTEMS MARGINAL EFFECTS MARKETABLE SKILLS MIGRANT MIGRATION MIGRATION DATA MIGRATION FLOWS MINISTRIES OF FINANCE MINISTRY OF FINANCE MISSING DATA MULTIVARIATE REGRESSION ANALYSIS NATIONAL DEVELOPMENT NATIONAL GOVERNMENT NATIONAL GOVERNMENTS NUMBER OF MIGRANTS NUMBER OF PEOPLE OPEN ACCESS OUTSOURCING PERFORMANCE INDICATORS PERFORMANCE MEASUREMENT PERFORMANCES POLICY DISCUSSIONS POLICY IMPLICATIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POLITICAL ECONOMY POPULATION DATA POPULATION EFFECT POPULATION SIZE POPULATION VARIABLE PORTFOLIO POST-CONFLICT SETTINGS POVERTY REDUCTION PRACTITIONERS PREPARATION OF BUDGET SUBMISSIONS PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PROCUREMENT FUNCTION PROCUREMENT PROCESSES PROFESSIONAL STAFF PROGRAMS PROGRESS PUBLIC PUBLIC ADMINISTRATION PUBLIC ENTITIES PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC FINANCE PUBLIC FINANCES PUBLIC FINANCIAL MANAGEMENT PUBLIC FINANCIAL MANAGEMENT SYSTEM PUBLIC FINANCIAL MANAGEMENT SYSTEMS PUBLIC SECTOR PUBLIC SECTOR REFORM PUBLIC SERVANTS PUBLIC SERVICE PUBLIC SERVICES REFORM EFFORTS REFORM OBJECTIVES REFORM PROGRAMS REGIONAL DUMMIES REGISTRATION SYSTEM RELATIONSHIP BETWEEN POPULATION RELIABILITY REMITTANCES RESOURCE ALLOCATION RESOURCE MANAGEMENT RESOURCE USE RESULT RESULTS RETENTION RETURN REVENUE COLLECTION RICHER COUNTRIES SERVICE DELIVERY SKILLED STAFF SMALL COUNTRIES SUB-NATIONAL GOVERNMENTS SUSTAINABILITY ANALYSIS TARGETS TAX TAX ASSESSMENT TAX COLLECTIONS TECHNICAL ASSISTANCE TECHNICAL CAPACITIES TECHNICAL CAPACITY TECHNICAL REQUIREMENTS TECHNICAL SKILLS TECHNICAL STAFF TERTIARY EDUCATION TOTAL EXPENDITURE TRANSPARENCY TREASURY TRUST FUNDS TURNOVER UNITED NATIONS POPULATION DIVISION WEB WORLD POPULATION Drawing on Public Expenditure and Financial Accountability assessment scores from 118 countries, this paper provides the first comparative analysis of public financial management performance in small Pacific Island Countries (PICs). It applies a Tobit regression model across the full cross-country sample of Public Expenditure and Financial Accountability scores and country variables to identify potential causes for the observed underperformance of Pacific Island countries relative to other countries of similar income. First, the analysis finds small population size to be negatively correlated with Public Expenditure and Financial Accountability scores, with the "population penalty" faced by small Pacific Island countries sufficient to explain observed underperformance. Second, through application of a new capacity index of Public Expenditure and Financial Accountability dimensions, it finds strong evidence in support of the hypothesis that small population size impacts scores through the imposition of capacity constraints: with a limited pool of human capital, small countries face severe and permanent challenges in accessing an adequate range and depth of technical skills to fulfill all functions assessed through the Public Expenditure and Financial Accountability framework. These findings suggest that approaches to strengthening public financial management in small Pacific Island countries should involve: i) careful prioritization of public financial management capacity toward areas that represent binding constraints to development; ii) adoption of public financial management systems that can function within inherent and binding capacity constraints, rather than wholesale adoption of "best practice" imported systems; and iii) consideration of options for accessing external capacity to support public financial management systems on a long-term basis, from regional agencies, the private sector, or donors. 2013-01-29T18:22:17Z 2013-01-29T18:22:17Z 2012-12 http://documents.worldbank.org/curated/en/2012/12/17103609/capacity-constraints-public-financial-management-small-pacific-island-countries http://hdl.handle.net/10986/12207 English en_US Policy Research Working Paper; No. 6297 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific