Improving Fiscal Governance in Emerging Economies: Multilateral Support to Budget Oversight and Public Sector Auditing
27 Pages Posted: 1 Feb 2005
Date Written: 2005
There is increasing recognition that improving economic governance and fostering fiscal responsibility in emerging economies requires strengthening transparency and accountability in the management of public finances. This study reviews multilateral support to the strengthening of national parliaments and external audit agencies in Latin America and the Caribbean. It underscore recent developments in development finance, grounded in a broadening of the understanding on what conditions the credibility and performance of governmental financial management systems. It reveals a learning curve in multilateral assistance to budget oversight institutions, as well as some of its limitations linked to the political economy of financial accountability. It argues that there exists unexplored potential to improve the effectiveness of multilateral assistance to fiscal control institutions, including in the choice of lending strategies and the synergies between instruments.
Keywords: Multilateral lending, budget oversight, external audit, emerging economies
JEL Classification: H61, F34, O23, P16
Suggested Citation: Suggested Citation