Baghdad, September 16, 2018– The World Bank Group and the European Union signed today a EUR15.6 million (US$ 18.1 equivalent) technical help program to strengthen public monetary management (PFM) oversight and accountability Organizations in Iraq and increase the effectiveness in the management of public resources and delivery of services.
The effort, which will be carried out collectively by the European Union and the World Bank, matches the $41.5 million “Modernization of Public Financial Management Systems” program introduced by the World Bank in 2017. It deals with some of the essential vulnerabilities in Iraq’s PFM and supports the commitments and objectives for PFM reform currently under application.
“PFM is an important part of any development treatment“, stated Saroj Kumar Jha, World Bank Mashreq Regional Director. “Sound PFM supports aggregate control, prioritization, duty and efficiency in the management of public resources and delivery of services, which are important to the accomplishment of public policy objectives, in addition to restoring the trust and social contract in between Iraqi individuals and the nation’s organizations“.
As assistance is progressively supplied through approaches that depend upon well-functioning systems for budget advancement, execution and control, a sound PFM system is fundamental to the suitable use and effectiveness of donor support. A more efficient PFM system is also important in minimizing inequalities in wealth flow and promoting a dynamic and flourishing financial environment more favorable to service advancement.
“As was promised in the Kuwait Conference, the European Union is committed to wait Iraq in restoration and financial and political reforms,” specified Ramon Blecua, European Union Ambassador to Iraq. “Our cooperation with the World Bank has actually been extremely fruitful and this project complements ongoing efforts supporting public funding management. The focus of the job we are signing today will be on the coordination of federal government and donors, more effective management of resources, improved oversight and accountability, and fighting corruption. The EU is prepared to help Iraq in dealing with the obstacles ahead to protect a much better future for Iraq“.
The program includes 3 pillars and 9 sub-components. Each sub-component represents a particular Government reform commitment/objective and has actually been designated to a lead government institution/department serving as WBG-EU counterpart. While some components will be recipient-executed with support from the World Bank, others will be at first WBG-EU executed on behalf of the recipient due to capacity restraints.
The program envisages the creation of a Donors’ Coordination Committee, where all choices concerning public financing management reforms and donor support to reforms will be talked about under the assistance of the Government of Iraq to ensure ownership, coordination, complementarity and basic reforms.