USAID increasingly is using the Public Management Risk Assessment Framework to assess, analyze, and mitigate the risks associated with the partner country's public financial system, which can facilitate collaboration with government counterparts on PFM initiatives while also facilitating increased collaboration with bilateral donors using host country financial systems.
The IDG Team offers services to assist with each of the five stages of the PFMRAF process:
- Rapid appraisal of the fiduciary risks associated with the host country's PFM systems;
- A thorough risk assessment of the PFM systems in the host country partners that may be responsible for making decisions associated with the USAID assistance and obtaining approval for use of partner country systems (AUPCS);
- Project design, approval, designation of responsibilities, and selection of funding mechanism;
- Negotiating and preparing the bilateral project agreement with the partner country government and finally;
- Implementation, monitoring, and evaluation.
The IDG Team's philosophy is that progress in this area requires, on the one hand, cutting-edge software specifically designed for government expenditure management in a developing country context, and, on the other hand, a broad array of technical assistance to government staff to ensure that personnel are able to use new software skills effectively, including not only training narrowly in the use of software, but also, more broadly, assistance in redesigning expenditure management business processes and procedures and training to fiscal agency and line agency personnel in these revised processes and procedures.
Azerbaijan Competitiveness and Trade Project: IDG has helped the government to improve expenditure management with cost-benefit and project appraisal analysis methods, has strengthened the central bank's abilities to manage its resources and to supervise the commercial banking system using risk-based assessment, has advanced WTO accession, and has introduced Domestic Resource Cost Analysis to identify competitive value chains.
Tunisia EG ICT Competitiveness Project: In Tunisia, IDG advised on tax and expenditure policy, and on access to finance. IDG is also advising commercial banks and the central bank on ways to increase lending to the private sector while at the same time increasing stability and monitoring of the financial system.
Tripoli Special Economic Zone Project: Provided quantitative analysis to inform government decision-making on channeling state resources for regional economic development projects for the Prime Minister's Office.
Liberia Vision 2020 Corridors Development Project:Provided quantitative analysis to inform government decision-making on channeling state resources for regional economic development projects for the Ministry of Planning and Economic Affairs. The IDG Team also identified investment opportunities in agriculture and non-agriculture at the feasibility and pre-feasibility stages. IDG advised on elements of sound public and private investment planning and management that are important if Liberia is to successfully manage its natural resources and corresponding revenues.