Public Procurement and Public Financial Management in Africa: Dynamics and Influences
- 13 Downloads
How do public procurement practices influence effective public financial management (PFM) in Africa? Notwithstanding the several public procurement reforms to improve PFM in Africa, outcomes have not been sustainable. Prior studies have failed to explain this phenomenon. With a descriptive case study design based on comprehensive datasets, this paper explains this situation with three key factors underlying the public procurement environment in three African countries: Ethiopia, Central African Republic, and Ghana. From the agency theory lenses, these factors affect the agency cost in public administrative systems necessary for addressing the agency problems in public procurement management towards desired PFM outcomes.
KeywordsPublic financial management Public procurement Principal agency theory Africa Ethiopia Central African Republic Ghana
- Abdulai, A. G., & Hickey, S. (2016). The politics of development under competitive clientelism: Insights from Ghana's education sector. African Affairs, 115(458), 44–72.Google Scholar
- Adjei-Bamfo, P., & Maloreh-Nyamekye, T. (2019 Forthcoming). The ‘baby steps’ in mainstreaming sustainable public procurement in Ghana: A double-agency perspective. Journal of Public Affairs, e1902. https://doi.org/10.1002/pa.1902.
- Betley, M., Bird, A., & Ghartey, A. (2012). Evaluation of public financial management reform in Ghana (pp. 2001–2010). Sweden: Final Country Case Study Report. Swedish International Development Agency (Sida).Google Scholar
- Chekol, G. A., & Tehulu, T. A. (2014). Public procurement reform in Ethiopia: Factors leading to effective public procurement implementation: The case of Amhara region. European Journal of Business and Management, 6(23), 153–158.Google Scholar
- Ellram, L. M. (1996). The use of the case study method in logistics research. Journal of Business Logistics, 17(2), 93–138.Google Scholar
- Farazmand, A. (Ed.). (2002). Modern organizations: Theory and practice. Greenwood Publishing Group. USA.Google Scholar
- Hadley, S., & Miller, M. (2016). PEFA: What is it good for? In The role of PEFA assessments in public financial management reform. London: Overseas Development Institute.Google Scholar
- International Monetary Fund, (IMF). (2009). Central African Republic: Poverty Reduction Strategy Paper – First Annual Progress Report (IMF Country Report No. 09/240). International Monetary Fund: Washington DC. Accessed on: 14/12/2017, From: https://www.imf.org/external/pubs/ft/scr/2009/cr09240.pdf.
- Kühn, S. & Sherman, L. B. (2014). Curbing corruption in public procurement: A practical guide. Berlin: Transparency International. Accessed on: 14/12/2017, from: https://www.transparency.org/whatwedo/publication/curbing_corruption_in_public_procurement_a_practical_guide
- Leruth, L. & Paul, E. (2006). A principal-agent theory approach to public expenditure management systems in developing countries. IMF Working Paper No. 06/204: 1–45. Washington: International Monetary Fund. Accessed on: 21/01/2017, From: https://ssrn.com/abstract=934463.
- Mawenya, A. S. (2008). Preventing corruption in African procurement. In Occasional paper. Johannesburg: South African Institute of International Affairs (SAIIA).Google Scholar
- Neupane, A., Soar, J., & Vaidya, K. (2014). An empirical evaluation of the potential of public E-procurement to reduce corruption. Australasian Journal of Information Systems, 21, 21–44.Google Scholar
- Ochrana, F., & Pavel, J. (2013). Analysis of the impact of transparency, corruption, openness in competition and tender procedures on public procurement in the Czech Republic. Central European Journal of Public Policy, 7(2), 114–135.Google Scholar
- Peterson, S. (2010). Reforming public Financial Management in Africa. HKS Faculty Research Working Paper Series RWP10-048. John F. Kennedy School of Government. In Harvard University.Google Scholar
- Public Expenditure and Financial Accountability (PEFA) Secretariat (2010). Survey of PEFA partners’ use of PEFA assessments for internal processes. Washington, DC: Public Expenditure and Financial Accountability Secretariat.Google Scholar
- Public Expenditure and Financial Accountability (PEFA) Secretariat (2016a). PEFA 2016 Handbook Volume II: PEFA Assessment Field guide. Washington DC: PEFA Secretariat.Google Scholar
- Public Expenditure and Financial Accountability (PEFA) Secretariat. (2016b). Framework for assessing public financial management. Washington DC: PEFA Secretariat.Google Scholar
- Ross, S. A. (1973). The economic theory of agency: The principal's problem. The American Economic Review, 63(2), 134–139.Google Scholar
- Tesfahun, Y. (2011). Public Procurement Reforms in Ethiopia: Policy and Institutional Challenges and Prospects. A thesis submitted to the Addis Ababa University: Ethiopia.Google Scholar
- Tobin, R. (2012). Descriptive case study. In A. J. Mills, G. Durepos, & E. Wiebe (Eds.), Encyclopedia of case study research (p. 289). Thousand Oaks: SAGE Publications, Inc..Google Scholar
- Transparency International (2011). E-procurement reduces opportunities for corruption and bribery. Brussels.Google Scholar
- United Nations (UN). (2017). Procurement Specialist 170394. Accessed on: 05/04/2017, From: https://uncareer.net/vacancy/procurement-specialist-170394
- Vyas, L., Hayllar, M., & Wu, Y. (2017). Bridging the gap-contractor and bureaucrat conceptions of contract Management in Outsourcing. Public Organization Review, 1–27.Google Scholar
- World Bank. (2003). Ghana 2003 country procurement assessment report. Washington, DC: Ghana Country Department.Google Scholar
- World Bank. (2004). Memorandum and recommendation of the president of the international development association to the executive directors on assistance to the Federal Democratic Republic of Ethiopia under the enhanced HIPC debt initiative. Washington DC: World Bank.Google Scholar
- World Bank. (2012). Why reform public procurement? Washington DC: World Bank.Google Scholar
- World Bank (2016). Heavily Indebted Poor Country (HIPC) Initiative. Accessed on: 14/12/2017, From: http://www.worldbank.org/en/topic/debt/brief/hipc
- Yin, R. K. (2003). Case study research: Design and methods (third ed.). London: SAGE Publication.Google Scholar