This open access book focuses on the 'downstream' element of PFM that is how public
organisations utilise public resources. It argues that improvements in PFM IC will only flow
from a recognition that what really matters is the quality of management. Management reform is
an essential precondition to the successful implementation of many new techniques. Only when a
managerial capacity exists willing to take advantage of the opportunities created by such
technical developments is it beneficial to pursue them. The benefits of PFM IC flow from an
improved quality of management. Despite enormous efforts reform of public financial management
and internal control (PFM IC) in developing and transition economy countries has not been
particularly successful in improving the quality of public service delivery and the use of
public resources. This book outlines why this is and suggests a new approach. The analysis set
out in this book is particularly relevant especially given limited national budgets and
squeezed international aid budgets. These management changes include to the political official
relationships to management structures to budgetary and accounting arrangements and to the
relationships between particularly the ministry of finance and other ministries. They require
the delegation of operational management developments in financial management and in
accountability arrangements and a reconsideration of personnel policies penalty and sanction
arrangements. Managerial training for the civil service will be a key requirement. Reform may
impact upon traditional cultural practices. These changes are all inter-related and should be
coordinated.
