Following up on our previous query on corruption
in the health and education sectors in Mali, are there studies
on corruption in the public financial management systems as
well as on direct budget support in Mali?
The questioner is specifically interested in discussion of corruption
in the Public Financial Management (PFM) system in Mali, with a particular
interest in corruption and direct budget support (DBS) in Mali. We
direct the questioner to U4 background materials on PFM, budget support
and corruption, but focus our research on available papers on the
situation in Mali.
Please also see: CMI Brief "Should corrupt countries receive budget support?"
This provides a background to issues of corruption in direct budget
support. It comments that "budget support requires a well-functioning
PFM system to be effective" and notes the results of an IMF study
that budget support works better where a country's institutions
are good (and that project support works better where institutions
are bad).
U4 Expert Answers on the U4 website dealing with PFM and DBS:
Diallo and Cissé, 'Etat
de la Gouvernance de Mali' (2004)
('The state of governance in Mali'). This report (in French) offers
a review of the state of governance in Mali. The report contains
many sections on the political power structure in Mali as well as
reviews of its checks and balances (see especially 2.1 and chapter
3) The efficacy and auditing of public financial spending is examined
in section 4.3. Section 5.1 considers the weaknesses of the government
of Mali.
UNCTAD (the United Nations Conference on Trade and Development)
'Guide
de l´investissement au Mali' (2004)
An investment guide to Mali. On page 41 mention is made of Mali's
"heavily bureaucratised" public administration. The report
notes that the Mali government has established a general auditor
(Vérificateur Générale) who controls the use
of public resources by administrations, private enterprises, as
well as any association receiving public funding. The Vérificateur
Générale was established in 2004.
Summary of project:
"The Economic Policy and Public Finance Management Credit Project
contributes to implementing the first, second and fourth pillars
of Mali's Poverty Reduction Strategy Framework (PRSF). Specifically,
the project aims to: (1) promote growth and poverty reduction through
(a) strengthening macroeconomic and fiscal management and (b) implementing
key actions underpinning Mali's long-term growth and competitiveness;
and, (2) improve efficiency, accountability and transparency in
public finance management through strengthening (a) public expenditure
management at central and decentralized levels and (b) the public
procurement system.
Macroeconomic management would be strengthened through prudent expenditure
management; and greater linkage between the macroeconomic framework,
the budget and the implementation of the PRSF. The growth support
agenda would be strengthened through continued implementation of
financial sector development actions to strengthen the health of
the sector and enhance access to finance particularly longer term
funds; implementation of key transport sector actions to improve
quality and lower cost of transportation services; and implementation
of trade facilitation measures to reduce processing/transactions
costs of trade. Public expenditure management (PEM), drawing from
the Government ' s Consolidated Action Plan for the Modernization
and Improvement of Public Finance Management, would be strengthened
through continuing the automation of information flows between key
MEF de-concentrated departments (notably, treasury, budget and financial
control) to increase information quality and transparency, improving
the quality of published material on the financial and expenditure
situation of the Government to increase transparency; and continued
improvements in PEM processes, particularly internal and external
budget control mechanisms.
Public procurement would be strengthened through adoption of a coherent
action plan and commencing its implementation, comprising updating
of the legislative/regulatory framework, strengthening the linkages
between public procurement and public finance management processes,
and strengthening the private sector 's access to public procurement
opportunities."
