Haiti: Public Expenditure Management and Financial Accountability Review

This book summarizes the key findings and policy recommendations of a comprehensive diagnosis of a Public Expenditure Management and Financial Accountability Review (PEMFAR). The PEMFAR is an exercise which integrates the analysis of a Public Expenditure Review, a Country Financial Accountability Assessment, and a Country Procurement Assessment Report. The analysis focuses on the linkages between public finance, growth, and poverty.

Over the past years, Haiti has made good progress in reforming its public financial management system. However, significant challenges remain to improve efficiency, transparency, and accountability. Moreover, the growth-poverty response of the improved system has been limited. Haiti remains one the poorest countries in the world. Accelerating growth and reducing poverty will require bold policy actions with a strong emphasis on fiscal reforms. However, even with the best fiscal reforms, it is unlikely that Haiti will achieve in the near future the high growth rates required to significantly move the country out of the poverty trap. More foreign aid and predictable flows are needed to support economic growth and help overcome some of the vicious dynamic circles that lock Haiti in a low growth/high poverty equilibrium, and improve living standards. In this context, effective management of aid flows is crucial to ensure that their potential growth-enhancing, poverty-reducing, and human development-improving effects materialize.