Update on the Assessments and Implementation of Action Plans to Strengthen Capacity of HIPCs to Track Poverty-Reducing Public Spending

Prepared by the IMF’s Fiscal Affairs Department and the World Bank's Poverty-Reduction and Economic Management Network

In collaboration with other departments of the IMF and World Bank

April 12, 2005

Contents

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Executive Summary

1. Introduction
1. Background and Origins of Work


2. Process and Methodology for Conducting the Comprehensive Reassessment
1. Process
2. Methodological Changes in Carrying out the Assessments


3. Results of 2004 Reassessments of PEM Systems and Comparison with 2002
1. Summary of the 2004 Results and Comparison with 2002 Benchmarks Met
2. Benchmarks Met by Area (Budget Formulation, Execution, and Reporting)
3. Benchmark Results by Indicato
4. Other Country Assessments


4. Action Plans
1. Progress in Implementing Action Plans (2003)
2. Actions Included in 2004 Assessments
3. Inclusion of Actions in PRSPs
4. Action Plans in Bank- and Fund-Supported Programs
5. Donor Assistance


5. Reporting on Poverty-Reducing Spending



6. Next Steps

Tables

1. Description of Expenditure Tracking Indicators and Benchmarks
2. Country Change in Benchmarks Met

Figures

1. Relative Need for Upgrading PEM Systems
2. Percent of Benchmarks Met
3. Progress in Meeting Benchmarks
4. Number of Measures Fully Implemented (FI) and Change in the Number of Benchmarks Met
5. Status of Measures by Type of PEM Reform (2003 Update)
6. Total Measures per PEM Indicator in 2004 Action Plans
7. Poverty-Reducing Spending in HIPCs

Box

1. Understanding Changes in Assessed PEM Performance: Malawi

Appendix

1. PEM System Performance in 2001 and 2004