Ivory Coast : Strengthening Public Expenditure Management and Controls

Cote d'Ivoire has witnessed unprecedented instability since 1999 and political tensions culminated in the civil conflict in 2002; while the war seems over, reconciliation has not been easy. The conflict resulted in a massive economic and social impact, affecting the entire sub-region. In July 2003, the respective militaries had signed a formal declaration of the end of war. An amnesty law was passed, overcoming a major roadblock to the disarmament process. Furthermore, there is agreement on a number of elements of the demobilization and disarmament process. Also, during April-August, despite difficulties, the government of national reconciliation has shown that various parties could work together to implement the peace accord. The authorities would like to lay the foundation for a speedy recovery when the peace process is fully consolidated. To set the stage for accelerated recovery, a key policy challenge in Cote d'Ivoire is improving public expenditure management, transparency and controls. This report provides a preliminary and selective analysis of key post-conflict public expenditure management issues facing the new government. This report is primarily an operational document, envisaged to advance the dialogue with the authorities and help strengthen post-conflict public expenditure management and speed the delivery of emergency assistance. It will soon be followed by a companion volume with a more traditional analysis of the structure and efficiency of public expenditures and the social impact. The report is organized around three main chapters, as follows: Chapter 1 provides background to the main body of the report (chapters 2 and 3) and briefly reviews the post-conflict situation, including the impact of the crisis, the governance problems (e.g., in the cocoa/coffee sector), and an outline of the report's links with the Interim Transitional Support Strategy (I-TSS) under preparation; Chapter 2 analyses salient public expenditure management (PEM) issues, inter alia, using standard HIPC assessment indicators; and Chapter 3 analyses institutional and operational issues in expenditure control systems