BEYOND THE ANNUAL BUDGET
Global Experience with Medium Term Expenditure Frameworks
Monday, 19 November 2010
CHAIR: Jim Brumby, Sector Manager/Lead Economist, Indonesia PREM
PRESENTER: Richard Hemming, Visiting Professor, Duke University
DISCUSSANTS: Teresa Ter-Minassian, Former Director, Fiscal Affairs Department, IMF, currently International Economic Consultant
Phil Keefer, Lead Economist, DECMG
What conditions determine the success of Medium Term Expenditure Frameworks (MTEFs)? How should the implementation of MTEFs be sequenced and coordinated with other budget reforms? What role should organizations such as the World Bank, bilateral development partners, and other international agencies play in supporting MTEF adoption? How can country authorities implement a new MTEF or strengthen an existing one?
The report provides a comprehensive review of worldwide experience with MTEFs, looking at countries both with and without MTEFs from 1990 to 2008. Using a systematic methodological approach, the authors employ multiple analytical techniques, including event studies and econometric analysis, to obtain results about the impact of MTEFs on fiscal performance. The authors then draw on case studies and other material to determine whether MTEFs should be a common element of public financial management systems, given differences in country circumstances. Guidance is also provided on MTEF design and implementation in the context of broader public financial management systems reform. For additional information, please get in touch with Nataliya Biletska (firstname.lastname@example.org).