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Lesson
The evaluation offers lessons regarding the need to properly adapt the scope and time frame of reforms to institutional capacity and to sequence reforms. Budget reform should be regarded as an evolving process and should focus on a more limited set of reforms that are within the reach of government institutions.

Project Number: 35376-023
Project Name: Second Phase of the Governance Reform Program
Report Date:
Lesson
In the absence of specific terms of reference for international advisors for on-the-job training, or if those are not strictly focused on the most technically challenging tasks, the availability of these experts to provide general support within the ministries will tend to crowd-out the inputs provided by, and the learning process of the local staff. Thus, experts should be given specific terms of reference that (a) require the provision of on-the-job training to local counterparts, and (b) limit their overall involvement to the most technically challenging tasks.

Project Number: 38122-013
Project Name: Fiscal Management and Public Administration Reform Program
Report Date:
Lesson
In the absence of absorptive capacity in ministries, little technical skills transfer will occur. However, the level of fiscal resources needed to sustain hiring of more qualified staff to the civil service (to increase that absorptive capacity) is also affected by current development partner financing of externally-funded national staff (the so-called ?second civil service?), which is now hired on inflated terms. Coordination between these two dimensions is a priority if core government capacity is to be developed.

Project Number: 38122-013
Project Name: Fiscal Management and Public Administration Reform Program
Report Date:
Lesson
Further assistance to the government, especially the Ministry of Finance (MOF), is crucial in order for reforms under subprogram 1 to become effective and be sustainable. But the approach to the provision of this assistance must also change. Instances have been highlighted in which high levels of technical assistance (TA) have constrained learning-by-doing on the part of local counterparts, and overwhelmed the incentives that normally underpin successful capacity development.

Project Number: 38122-013
Project Name: Fiscal Management and Public Administration Reform Program
Report Date:
Lesson
The major lesson learned from implementing the program is that it is generally difficult to implement reform measures that involve institutional shrinking and downsizing staff as in the case of the Badan Pengawasan Keuangan dan Pembangunan or Financial Supervisory and Development Board, now the government internal auditors (BPKP). The BPKP was a well-entrenched auditing institution with about 6,500 staff, about 5,000 of whom were spread in about 30 regional offices.

Project Number: 35144-013
Project Name: State Audit Reform Sector Development Program
Report Date:
Lesson
The other lesson learned was that this sort of vital reform measure, i.e., reorganizing the BPKP, should not have been pushed back as a condition for release of the second tranche. This appears to be a flaw in the program design. ADB should have insisted on reforming the BPKP step by step, making the government's agreement to reorganize the BPKP a condition for submitting the program for Board approval. Then government agreement to come up with a firm plan to reorganize the BPKP should have been made a condition for the release of the first tranche.

Project Number: 35144-013
Project Name: State Audit Reform Sector Development Program
Report Date:
Lesson
Implementing a reform program that involved cross-agency coordination and cooperation needed the country's highest political support, while this program was supported mainly by the Ministry of Finance (MOF) as part of its public financial management reform program. The MOF by itself appeared to lack support to push for downsizing the BPKP as contemplated under the program. In the end, the government appeared willing to sacrifice the second tranche in the interests of political expediency.

Project Number: 35144-013
Project Name: State Audit Reform Sector Development Program
Report Date: