Public Finance Management in Development Co-operation

Publication date: April 1, 2007

The purpose of this handbook is to support the everyday management of development cooperation to deal with issues related to public fi nance management (PFM). The handbook supports the use of Sida at Work, and complements it by showing how PFM affects development cooperation. Its ambition is thus to provide concrete advice for the implementation of Sida’s operational tasks by presenting answers to what to think of and how to do it.
Looking at a specifi c development activity in isolation is not feasible. The outcome of support will be determined by macro and sector policies, the ability of the PFM systems to support the implementation of these policies, and capacity issues within and beyond the sector.
Consequently, the Policy for Global Development, the harmonisation agenda and the new aid architecture translate into a considerable higher focus on public fi nance management.
Contributing effectively to poverty reduction entails effective management of PFM issues.