Abstract
Aid management has been seen as a somewhat peripheral topic in discussion of public financial management (PFM), probably because most recent PFM development has taken place in advanced economies, where aid receipts are not a factor. Although much has been written about the importance of improving country PFM systems as a means of improving aid effectiveness, this chapter argues for the necessity of improving aid management as a central element of improving PFM systems. For aid-dependent countries, the two topics are inseparable. In developing economies, where the need for aid is high but management is fragile, effective management of aid is of central importance. Aid funds are a substantial component of the totality of public finances, and accountability for these funds a critical element of PFM reform.
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© 2013 William A. Allan
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Allan, W.A. (2013). Managing Foreign Aid through Country Systems. In: Allen, R., Hemming, R., Potter, B.H. (eds) The International Handbook of Public Financial Management. Palgrave Macmillan, London. https://doi.org/10.1057/9781137315304_26
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DOI: https://doi.org/10.1057/9781137315304_26
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-33598-5
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