Study to Identify Challenges and Potential Success Factors Regarding Public Finance Management in Zambia
Abstract
This study was commissioned by the Jesuit Centre for Theological Reflection (JCTR) to explore ways of promoting effective and efficient public resource management and service delivery through transparency, social accountability and participation. It was intended to identify challenges and potential success factors regarding public finance management in Zambia. The study builds upon the Debt Management Bill paper by JCTR that suggests reforms in the national loan contraction and management process. The study employed a desk review of the different published relevant documents and previous study reports on the subject matter. Key informant interviews were conducted, principally targeting senior staff in the relevant government ministries/departments. The study found that current challenges in the Zambian public financial management system have a historical perspective that lie in the political economy of the country. A combination of issues of mind-set and political expediency appear to have fueled the emergence of a scenario where regulation is weak and, even where such is adequate, disregard is not uncommon. Various interest groups have argued that the current failure to significantly impact poverty can be linked to major shortcomings with regard to effectiveness, efficiency, transparency, accountability and participation in public financial management. It was also found that the case for reform in public resource management appears to have been clearly made over the years, with specific areas for improvement being well articulated. Key to these reforms has been the need for more integrated approaches to public resource management which has been viewed as critical to greater transparency, accountability and citizen participation. The study findings point to the need for all major pieces of reform to be woven into a coherent framework that keeps the main goals (such as poverty reduction) in mind, and targets the weakest links in the public financial management system.
Description
The Jesuit Centre for Theological Reflection (JCTR) is a faith based organization that works on a number of social and economic issues through research, education, consultancy and advocacy with different stakeholders. Through one of its programmes, the Economic Equity and Development Programme, JCTR contracted Nangoma Consult Limited to conduct a study on Zambia’s Public Finance Management Framework. The study seeks to examine the extent to which the current public finance management framework and laws promote transparency, accountability and participation. It also seeks to review the status and progress made on reform programmes meant to enhance transparency, accountability, participation and effective public finance management, such as decentralization, right-sizing and pay-reforms in the civil service.