November 3, 2014Doug Hadden
Doug Hadden, VP Products
International donors realize that using country systems will improve aid effectiveness. For example, the accounting and procurement for projects ought to operate through Public Financial Management (PFM) systems in use by recipient governments rather than through NGOs and private companies. Yet, there remains some resistance because country systems could be subject to corrupt practices. Yet, the use of country systems seems to be a better anti-corruption mechanism that the status quo.
- The entire budget can become transparent so everyone knows what governments and donors are doing together
- Automated controls within PFM systems and the reduction in use of cash, reduces corruption opportunities
- Country development priorities are followed
- Electronic records for all transactions aids in audit
- All of this information can be presented on portals