Achieving Medium Term Expenditure Framework Reform : A Case Study of Korea

A medium-term expenditure framework is considered an essential element of public financial management reform, and this framework has been adopted in many countries. However, in terms of implementation in those countries, the medium-term expenditure framework continues to present a significant challenge within the budget process. This case study provides an inside story of medium-term expenditure framework reform in the Republic of Korea and offers some suggestive evidence about the impact of the reform. Drawing on theories of change management, the study explores how actors within the Korean government created acceptance of reform needs among relevant stakeholders, how they handled various challenges throughout the reform, how they built capacity among stakeholders, and how they institutionalized the reform measures that were consistent with stakeholder incentives. The case highlights the following implications: (1) having strong support from top decision makers is essential to successful medium-term expenditure framework reform; (2) finding ways of integrating a medium-term expenditure framework into the budget process is critical; and (3) making the framework stable and sustainable requires both capacity building of relevant stakeholders and significant organizational restructuring.

Bibliographic Details

Main Authors:	Choi, Jae-Young, Park, Nowook
Language:	English en_US
Published:	World Bank, Washington, DC 2013-01
Subjects:	ACCOUNTABILITY, ACCOUNTING, ACCRUAL ACCOUNTING, AGGREGATE EXPENDITURE, ANNUAL BUDGET, ANNUAL BUDGET FORMULATION, ANNUAL BUDGET PROCESS, ANNUAL BUDGETING, ANNUAL BUDGETING PROCESS, ANNUAL BUDGETS, AUTOMATIC STABILIZER, AUTONOMY, BANKING INDUSTRY, BUDGET ALLOCATION, BUDGET AUTHORITY, BUDGET BALANCE, BUDGET DRAFT, BUDGET EXECUTION, BUDGET FORMULATION, BUDGET FORMULATION PROCESS, BUDGET FRAMEWORK, BUDGET PREPARATION, BUDGET PROCESS, BUDGET REQUEST, BUDGET REQUESTS, BUDGET SYSTEM, BUDGET YEAR, BUDGETARY PROCESSES, BUDGETARY PROGRAMS, BUDGETARY REFORM, BUDGETING, BUREAUCRATS, CAPACITY BUILDING, CENTRAL BUDGET, CENTRAL BUDGET OFFICE, CHANGE MANAGEMENT, COLLECTIVE ACTION, CONSOLIDATION, CREDIBILITY, DEBTS, DECENTRALIZATION, DECISION MAKERS, DECISION MAKING, DEVELOPING COUNTRIES, DEVELOPMENT BANKS, DEVOLUTION, ECONOMIC DEVELOPMENT, ECONOMIC MANAGEMENT, EXPENDITURE, EXPENDITURE CEILING, EXPENDITURE FRAMEWORKS, EXPENDITURES, FINANCIAL CRISIS, FINANCIAL INFORMATION, FINANCIAL INFORMATION SYSTEM, FINANCIAL MANAGEMENT, FINANCIAL MANAGEMENT INFORMATION, FINANCIAL MANAGEMENT INFORMATION SYSTEM, FINANCIAL MANAGEMENT SYSTEMS, FINANCIAL RESOURCES, FISCAL BALANCE, FISCAL DISCIPLINE, FISCAL PERFORMANCE, FISCAL PLANS, FISCAL POLICY, FISCAL REFORM, FUND MANAGEMENT, GOVERNMENT DEBT, GOVERNMENT EXPENDITURE, GOVERNMENT SPENDING, GROSS DOMESTIC PRODUCT, HUMAN RESOURCES, INFORMATION SYSTEM, INTERGOVERNMENTAL RELATIONS, INTERNAL MANAGEMENT, INTERNAL MANAGEMENT INFORMATION, INTERNATIONAL BANK, LAWS, LEGISLATION, LINE OF COMMAND, LOCAL FINANCE, LOCAL GOVERNMENTS, MACROECONOMIC VARIABLES, MANAGEMENT STRATEGY, MANAGERS, MEDIUM TERM EXPENDITURE, MEDIUM TERM EXPENDITURE FRAMEWORK, MEDIUM TERM EXPENDITURE FRAMEWORKS, MEDIUM-TERM EXPENDITURE FRAMEWORK, MEDIUM-TERM EXPENDITURE PLAN, MEDIUM-TERM FISCAL FRAMEWORK, MEDIUM-TERM PROJECTION, MEDIUM-TERM PROJECTIONS, MINISTRY OF FINANCE, MONETARY FUND, NATIONAL FINANCE, NATIONAL FISCAL MANAGEMENT, NATIONAL FISCAL MANAGEMENT PLAN, OPERATING COSTS, ORGANIZATIONAL CHANGE, ORGANIZATIONAL RESTRUCTURING, ORGANIZATIONAL STRUCTURE, PERFORMANCE BUDGETING, PERFORMANCE EVALUATION, PERFORMANCE INDICATORS, PERFORMANCE MANAGEMENT, PERFORMANCE MEASUREMENT, PROGRAM EVALUATION, PUBLIC, PUBLIC FINANCE, PUBLIC FINANCES, PUBLIC FINANCIAL MANAGEMENT, PUBLIC FINANCIAL MANAGEMENT REFORM, PUBLIC FINANCIAL MANAGEMENT SYSTEM, PUBLIC FUND, PUBLIC FUNDS, PUBLIC OFFICIALS, PUBLIC SECTOR, PUBLIC SECTOR GOVERNANCE, PUBLIC SECTOR MANAGEMENT, PUBLIC SECTOR REFORM, REFORM IMPLEMENTATION, REFORM PROCESS, REFORM PROGRAMS, REFORMS, RESOURCE ALLOCATION, RETURN, SETTLEMENT, SOCIAL WELFARE, STATE ENTERPRISES, STRATEGIC PLANNING, TAX, TAX REVENUES, TECHNICAL ASSISTANCE, TRANSPARENCY, TREASURY, TRUST FUND, WITHDRAWAL,
Online Access:	http://documents.worldbank.org/curated/en/2013/01/17205624/achieving-medium-term-expenditure-framework-reform-case-study-korea https://hdl.handle.net/10986/13154
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