Post-Conflict Security Sector and Public Finance Management : Lessons from Afghanistan

In recent years, international organizations like OECD and the World Bank have concluded that standard principles of Public Finance Management (PFM) are equally applicable to all areas of the national budget, including the security sector. To date however, very few reviews of PFM systems have included the security sector, not least because many governments tend to be overly protective about scrutiny of public finances in this sector, and as a result most donors have been reluctant to engage. As a result, the bulk of public expenditure reviews have focused on non-security components of the national budget, which represent an important but incomplete slice of national spending. Despite growing awareness of the importance of extending PFM reviews to the security sector, so far the challenge of moving beyond basic principles toward the adoption of a more comprehensive approach to building an effective and fiscally sustainable post-conflict security sector remains elusive. In countries such as Afghanistan, Iraq and Sierra Leone, national authorities and donors are struggling to regain control of unaffordable levels of security sector spending, much of it financed directly by donors. In many cases long-term external assistance may be required for the security sector, generating severe trade-offs with other priority sectors which also require long-term external support. Overcoming the legacy of a fiscally unsustainable and poorly managed security sector calls for full application of PFM principles to support the establishment of checks and balances required to establish a wholly accountable security sector.

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Bibliographic Details
Main Author: World Bank
Format: Brief biblioteca
Language:English
Published: Washington, DC 2006-07
Subjects:ACCOUNTABILITY, ACCOUNTING, AGGREGATE FISCAL, AGGREGATE FISCAL CONSTRAINTS, ANNUAL BUDGET, ANNUAL BUDGET FORMULATION, ANNUAL BUDGET PROCESS, ARMED FORCES, AUDITOR GENERAL, BASIC SERVICES, BUDGET ALLOCATIONS, BUDGET AUTHORITIES, BUDGET CYCLE, BUDGET EXECUTION, BUDGET FORMULATION PROCESS, BUDGET PLANNING, BUDGET YEAR, BUDGETARY EXPENDITURES, CAPACITY BUILDING, CAPACITY-BUILDING, CAPITAL BUDGET, CIVIL SERVICE, CIVIL SERVICE REFORM, DECISION-MAKING, DONOR COORDINATION, DONOR FUNDING, EXPENDITURE ALLOCATIONS, EXPENDITURE DECISIONS, EXPENDITURE REQUIREMENTS, EXPENDITURES, EXTERNAL ASSISTANCE, FINANCIAL IMPLICATIONS, FISCAL CONSTRAINTS, FISCAL DECISIONS, FISCAL DISCIPLINE, FISCAL ENVELOPE, FISCAL HEALTH, FISCAL OPERATIONS, FISCAL PERSPECTIVE, FISCAL PROJECTIONS, FISCAL SUSTAINABILITY, GOVERNMENT POLICY, GOVERNMENT SPENDING, HARD BUDGET CONSTRAINTS, INFORMATION FLOWS, INTERNATIONAL COMMUNITY, INTERNATIONAL ORGANIZATIONS, INTERNATIONAL SUPPORT, MILITARY TRAINING, MINISTRY OF FINANCE, NATIONAL AUTHORITIES, NATIONAL BUDGET, NATIONAL PRIORITY, NATIONAL SECURITY, OVERSIGHT BODIES, POLICY DECISIONS, POVERTY REDUCTION, PRIVATE INVESTMENT, PROGRAMS, PUBLIC, PUBLIC ADMINISTRATION, PUBLIC EXPENDITURE, PUBLIC EXPENDITURE REVIEWS, PUBLIC EXPENDITURES, PUBLIC FINANCE, PUBLIC FINANCE MANAGEMENT, PUBLIC FINANCES, PUBLIC FINANCIAL MANAGEMENT, PUBLIC GOODS, PUBLIC INSTITUTIONS, PUBLIC POLICY OBJECTIVES, PUBLIC RESOURCES, PUBLIC SPENDING, REFORM PROGRAMS, RESOURCE ALLOCATION, SECTOR BUDGET, SECTOR CEILINGS, SECTOR MINISTRIES, SECTOR POLICIES, SERVICE DELIVERY, SOCIAL CAPITAL, STRATEGIC ALLOCATION, STRATEGIC ALLOCATION OF RESOURCES, STRATEGIC POLICY, STRATEGIC PRIORITIES, TOTAL SPENDING, TRANSPARENCY,
Online Access:http://documents.worldbank.org/curated/en/2006/07/7008620/post-conflict-security-sector-public-finance-management-lessons-afghanistan
http://hdl.handle.net/10986/11180
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Summary:In recent years, international organizations like OECD and the World Bank have concluded that standard principles of Public Finance Management (PFM) are equally applicable to all areas of the national budget, including the security sector. To date however, very few reviews of PFM systems have included the security sector, not least because many governments tend to be overly protective about scrutiny of public finances in this sector, and as a result most donors have been reluctant to engage. As a result, the bulk of public expenditure reviews have focused on non-security components of the national budget, which represent an important but incomplete slice of national spending. Despite growing awareness of the importance of extending PFM reviews to the security sector, so far the challenge of moving beyond basic principles toward the adoption of a more comprehensive approach to building an effective and fiscally sustainable post-conflict security sector remains elusive. In countries such as Afghanistan, Iraq and Sierra Leone, national authorities and donors are struggling to regain control of unaffordable levels of security sector spending, much of it financed directly by donors. In many cases long-term external assistance may be required for the security sector, generating severe trade-offs with other priority sectors which also require long-term external support. Overcoming the legacy of a fiscally unsustainable and poorly managed security sector calls for full application of PFM principles to support the establishment of checks and balances required to establish a wholly accountable security sector.