Background
In its desire to streamline planning and economic management and align them with reconstruction and development priorities, the Government of Liberia (GoL) seeks to combine the Ministries of Finance (MoF), and Planning and Economic Affairs (MPEA). Consolidation is expected to:
- Integrate the planning and resource allocation functions currently spread between MPEA and MoF
- Empower line ministries to deliver by assuming day-to-day administration of their own resources
- Shift the MoF from a highly transactional orientation to one of strategic coordination and economic planning
- Spin off revenue collection functions into a separate revenue authority
Task
GoL asked ACET to support it in developing a blueprint for rationalizing public finance, economic management and planning functions in the MoF and MPEA with the view to consolidating the strategic elements of their work to form a single ministry.
Challenges
Currently, MoF and MPEA carry out certain processes separately and therefore do not benefit from potential synergies from collaboration. The two ministries also are involved in numerous transactional and routine duties rather than strategic and policy-related issues for which they are intended.
ACET’s approach
In Phase 1, ACET is conducting an in-depth assessment of GoL’s current institutional arrangements for planning, public finance and economic management. The five key elements of our analytical framework are planning, budgeting, financial management, implementation and performance management. Our lines of inquiry include:
- Approach to articulating national vision
- Relative roles and responsibilities of the two ministries in central planning and related documentation
- Human resource capacity for turning tactical plans to operations
- Existence of singular financial management reform agenda
- Financial management legislation and system of governance
- Control systems and level of delegation to line ministries
- Existence of clear and consistent approach to performance monitoring
- Accessibility to data to compare projected delivery targets with actual delivery
Findings/recommendations
In Phase 2, we will design a new structure for finance and planning for Liberia to meet the goal of consolidating the functions. Our recommendations will include a detailed action plan, implementation timelines and the resources required for effective implementation.
In Phase 3, we will provide implementation support to GoL.
