The Role of ICTs in Public Finance Management in Pacific SIDs: a Case for Good Governance

Abstract

The chapter examines the critical role of good governanceGovernance and robust financial management in building stable democratic states in the Pacific Islands. It explores the role of ICTs in public financial managementPublic financial management (PFM) as a means to this end and identifies some of the factors that lead to the success or failure of e-government initiatives in this core government activity. The chapter outlines the dominant PFM reform agendas in the Pacific, including those of the World BankWorld Bank and the IMF, which have been endorsed by the Pacific Islands ForumPacific Islands Forum Economic Ministers Meeting, and the role of PFM systems and effective audit systems in combating corruptionCorruption . The need for capacity buildingCapacity building and leadershipLeadership in embedding public financial management reforms are discussed and the chapter concludes with a discussion of some issues emerging from the chapter: the value of centralized versus decentralized systems and the tension between development assistance and sovereignty. The chapter argues that ownership of the public financePublic finance reform agenda by Pacific governments and a commitment to good governance is essential for sustainable PFM reforms in the region and for development.