2008年-世界发展银行全球_Paraguay___Integrated_Fiduciary_Assessment_111页_10mb

Paraguay Integrated Fiduciary Assessment Summary

Core Content

The Paraguay Integrated Fiduciary Assessment (IFA) is a collaborative effort by the World Bank (WB), the Inter-American Development Bank (IDB), and the European Commission (EC), based on findings from missions conducted in 2006 and 2007. The assessment aims to evaluate the Public Financial Management (PFM) and Procurement (PR) systems of Paraguay, identify key strengths and weaknesses, and support the development of an action plan for reform.

The IFA highlights the importance of institutional and governance reforms in improving the efficiency and transparency of public financial systems. It outlines the challenges in budget execution, fiscal transparency, and control effectiveness, which are closely linked to the country's political and institutional environment.

Main Abbreviations and Acronyms

Main Achievements in PFM & PR

• Tax and Customs Reform (2004): A significant reform was initiated, contributing to improved tax collection and fiscal discipline.
• Technical Improvements: Enhancements in budget accounting, financial planning, and cash management were implemented.
• Institutional Strengthening: The Comptroller General of the Republic (CGR) was strengthened with support from IDB and USAID.
• Procurement Reforms: New legislation and a centralized procurement system were introduced, enhancing transparency in procurement.
• Fiscal Surplus: The government maintained an average fiscal surplus of 1.0% of GDP from 2004 to 2006.
• International Reserves: The Central Bank increased international reserves from US$1.16 billion in 2004 to US$1.67 billion in 2006.

Identified PFM & PR Main Weaknesses

1. Credibility and Efficiency of the Budget Process

• Under-execution: Investment budget under-execution was around 40% during 2004–2006.
• Tensions: Disagreements between Congress (which can increase the budget) and the Executive (which limits execution to cash availability).
• Technical Issues: Lack of real-time monitoring of procurement and rigid link between Annual Contracting Plans and the Budget.
• Delays: Limited authority delegation for contract processing and frequent budget adjustments during execution.
• Payment Arrears: Persistent payment arrears in the Central Administration, especially from state-owned enterprises (SOEs) like PETROPAR.
• Economies of Scale: Over half of procurement processes do not benefit from economies of scale.
• Foreign Firm Participation: Existence of requirements that hinder foreign firm involvement.

2. Fiscal Transparency

• Sub-national Transfers: No transparent and unified registry exists for transfers to sub-national governments, which are 4.3% of consolidated public expenditure in 2006.
• Quasi-fiscal Losses: Central Bank and SOEs face significant quasi-fiscal losses.
• Contingent Liabilities: The pension system has associated contingent liabilities.

3. Control Effectiveness

• Internal Control: Weak internal control framework affects performance in salary and goods & services expenditure.
• Internal Audit: Lacks trained staff, harmonized norms, and institutional independence.
• External Audit: Follow-up on audit recommendations is ineffective.
• Accountability and Discretion: Weak accountability and high discretion for senior management due to inadequate HR policies.
• Control Standards: Absence of internal control standards and procedures for the public sector.
• Integration Issues: Some systems are disconnected from financial management systems like SIAF.

Underlying Governance Challenges

• Political Instability: Paraguay experienced a decade of political instability before 2004–2006.
• Corruption: High perception of corruption, especially in the political sphere (Legislature and judiciary) and in services like customs administration.
• Weak Governance: Despite some improvements, governance remains weak in most dimensions, as per WBI indicators.
• Institutional Overlaps: Redundant systems and institutional overlaps in donor-funded operations increase bureaucracy and reduce information reliability.
• Human Resources Issues: Rigid and unstable HR practices affect the government's ability to avoid outsourcing to international organizations.

Structure of the IFA

• Chapter 1: Provides context and scope of the study, including economic and political background.
• Chapter 2: Details key PFM and PR issues and their connection to governance.
• Chapter 3: Uses PEFA and OECD-DAC indicators to assess PFM and PR performance.
• Chapter 4: Analyzes the institutional framework and management capacity for PFM and PR.
• Chapter 5: Focuses on fiduciary aspects of managing external financing.
• Chapter 6: Concludes with recommendations and an action plan for reform.

Summary of Governance Indicators (1996–2005)

Conclusion and Government Action Plan

• The IFA emphasizes the need for broader governance reforms to complement PFM and PR improvements.
• PFM and PR reforms should be integrated with actions in human resources and institutional strengthening.
• The action plan includes steps to improve budget execution, fiscal transparency, and control effectiveness.
• Donor coordination is essential to ensure the effective implementation of reforms, especially in managing foreign-financed projects.

Relevance for IFIs and Donors

• Paraguay's PFM and PR reforms are critical for the smooth implementation of IFIs and donor projects.
• The current account has deteriorated from a surplus of 2% of GDP in 2004 to a deficit of 3.4% in 2006.
• Despite this, the Central Bank managed to increase international reserves due to higher revenues from transnational hydroelectric companies and international remittances.

Summary

The IFA underscores the need for institutional and governance reforms to improve public financial management and procurement in Paraguay. While some progress has been made, particularly in tax and customs reforms, and procurement transparency, significant challenges remain in budget execution efficiency, fiscal transparency, and control effectiveness. The high perception of corruption and weak institutional frameworks continue to hinder the performance of PFM and PR systems. The action plan aims to address these issues through collaboration with IFIs and donors, strengthening internal and external audit systems, and enhancing the institutional environment.