Public Sector Governance and Accountability Series: Budgeting and ...

Automating Public Financial Management in Developing Countries 349
visible and prone to delays and corruption, and unrealistic expectations
about functionality and schedule are commonplace.
In developing countries, high-level commitment to any reform will at
best be modest and episodic. Financial reforms and the information systems
that support them are by their nature long-term endeavors, so long-term
support, however defined, is required. Equally if not more important to
high-level commitment are acceptance and use by the middle echelons of
the government. It is there that the systems are introduced, used, or ignored.
Obtaining middle-management commitment involves four factors: trust,
need, help, and urgency (Peterson 1998a). Government officials, especially
middle-level managers, need to trust the contractors providing the solution;
gaining that trust takes time. They have to see the need for the change and
recognize that the solution will help them. Finally, urgency to implement the
change has to exist.
The foreign aid community needs to have realistic expectations about
the limits and time scale of financial reform and the computer systems that
support them. Improving supporting manual systems is as important as
introducing the automation of some of the modules. Although no quick
hits exist in financial reform, ironically, relatively more rapid improvement
is often possible in manual procedures than in the automation of procedures.
Foreign aid agencies need to consider support for improvements in
both manual and automated procedures. Foreign aid agencies tend to
overstate the benefits of a process of innovation approach and underestimate
the complexities and risks of this approach. Foreign aid agencies need
to better understand the process change approach and its virtues. The
experience of IFMISs, particularly in Africa, has shown that contractor
failure or poor performance has been a major risk. In evaluating the selection
of contractors, consideration should be given to their understanding
of and experience with process change, not just process innovation. The
critical task for any contractor is integration of the computer system with
the organization and its staff. This process requires familiarity and experience
with the local context.
Lesson 2: Information Technology Should Not Be the Driver of
Financial Reform
Typical OTS IFMIS systems do not have all of the core modules necessary
for good financial management. Good financial management requires both
manual and automated procedures, and IT alone is not enough. IT systems
should support sound financial procedures, not define them.