Practices in the Use of Country PFM Systems

This chapter first examines the factors that influence donors’ decisions about using country PFM systems, focusing in particular on donors’ perceptions of risk and their approaches to managing it. Evidence suggests that the quality of the system is not the only determinant in donors’ decisions about whether or not to use the country’s systems. Other factors include the credibility of the country’s PFM reform programme the partner country’s and the donors’ own preferences as well as the perception of corruption. Following a discussion of risks to donors in using country systems this chapter ends by outlining donors’ guidance on and incentives for the use of country PFM systems.