Benin report - Institut Africain de la Gouvernance

CHAPTER FOUR: ECONOMIC GOVERNANCE AND MANAGEMENT__________________________________________________________________________implement economic policies is relatively limited. The major problemsencountered by the country in implementing an efficient decentralisationsystem are: (i) lack of leadership in the decentralisation process; (ii) absenceof a clearly formalised strategy; (iii) lack of commitment on the part ofministries to the decentralisation process; (iv) delays in the transfer of areas ofcompetence and the corresponding resources; (v) inadequate resources incouncils; (vi) inadequate government transfers; (vii) failure by some localelected officers to assimilate their roles; and (viii) the magnitude of fiduciaryrisks.447. In the light of these constraints, the CSAR concludes that decentralisation isnot yet effective. Finally, as regards the strengthening of institutionalmechanisms to ensure the effectiveness of budget decentralisation, the CSARindicates that the Ministry of Finance and Economy has developed proceduresfor utilising the decentralised resources made available to city councils andcredit managers in the central administration.ii.Conclusions of the CRM448. The CSAR limits itself mainly to an analysis of reforms carried out to improverevenue from tax. The report contains no analysis of the management of publicexpenditures. Consequently, the section on the objective for public financemanagement is incomplete. Reforms introduced in this area by thegovernment, which are essentially aimed at improving governance, are notcovered in the report. The section on public revenue management is limitedessentially to an incomplete presentation of the institutional and regulatoryframework of public finance management.449. With regard to improving public revenue, the CSAR does not emphasise theprogramme to improve the local tax system. However, the CRM was pleasedto note the efforts made by the government to introduce budgetary andaccounting management, and the reform of internal and external audits and thepublic procurement system, which are the main areas of results-basedmanagement. Indeed, in order to modernise management in publicadministration, the government has prepared a reform strategy for the resultsbasedmanagement of public resources. This strategy, which reflects the visionof the government for the new method of public management, aims essentiallyat establishing a public resource management system that helps to reducepoverty substantially through greater efficiency and transparency in publicspending.161