Guyana undertakes further public sector modernization
Kaieteur News
November 10, 2006

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The second component of the Public Sector Modernization Programme was launched yesterday with the aim of improving public management efficiency, transparency and accountability in the government of Guyana and its semi-autonomous and statutory bodies.

The Government of Guyana initiative, which has the financial support of the Inter-American Development Bank (IDB), is an effort at comprehensive reform and modernisation of the public sector.

The programme is divided into three components: public sector strengthening; agencies and statutory bodies' accountability and efficiency; and improvement and coordination of the state reform process.

The project has its genesis in the formulation of the Public Sector Modernization Design Plan (PSMDP), which came into being some time ago and which identified several areas where it was determined what the Guyana Public Sector needed to become in order to achieve the changes they desired.

The Governance Network, the firm which completed the initial assessment of the Guyana Public Sector and prepared the PSMDP, produced a Vision Statement which has been accepted and is currently being used in the reform process.

The new public sector vision aims to transform the entity into a results-driven, customer-focused institution, recognised for its innovative leadership, integrity, and professionalism in promoting socio-economic stability and sustainable development in Guyana .

It also has as it goal attracting and retaining highly motivated, qualified personnel to partner with stakeholders to provide quality services that exceed the public's expectations in the pursuit of poverty reduction and national development.

Minister within the Ministry of Finance, Jennifer Webster, stated that apart from the broader Public Sector Reform Policy, several other initiatives are taking place.

“In recognition of the public sector's critical role in good governance, which is crucial for economic and social progress, Government embarked upon a comprehensive reform of the public sector, encompassing reform in every facet of the sector's operation, and utilising a phased approach.”

She noted that the operations of certain ministries and departments have been rationalised and new institutions created in cases where it was felt that the service or good would be better delivered or produced in an independent or semi-independent setting.

The Minister added that a number of agencies have also been privatized, and certain aspects of Government's activities have been contracted out.

At the legislative level, she pointed out, Government has introduced a new Financial Management and Accountability Act for managing public finances, as well as a new Procurement and new Audit Act, all geared towards fostering greater transparency, efficiency and effectiveness of public financial and economic management.

According to the Minister, information technology has also been introduced into the public sector in an effort to facilitate efficient decision-making, public administration and policy implementation.

“Specifically, an Integrated Fiscal and Management System (IFMAS) has been installed, and all Government agencies are benefiting from a streamlined approach to budgeting and accounting,” Minister Webster said.

She noted that over the years there have been a number of attempts to reform the public sector in Guyana , with varying degrees of completeness and success. The economic reforms in the 1980s and 90s, she opined, brought about the macroeconomic stabilisation and economic growth.

However, Guyana's public sector was so severely weakened during the three preceding decades that, despite intensive reform in the 1990s supported by various donors, including the CIDA and the IDB, World Bank and USAID, the Public Sector organisation, systems and procedures remained weak and inefficient, she said.

Minister Webster said that were the situation allowed to go unchanged, it would have jeopardised the progress already made, as well as Government's ability to respond to the economic and other challenges.

She called on everyone involved in the process to focus on the task and not to be consumed by any perceived fear or fall out from the implementation of the project.

“Change and reform of the public sector are necessary if (the public sector) is to effectively contribute to the process of socio- economic growth and development of the country. They are vital if we are to establish an enabling environment for private sector development, strengthen and deliver services in the social sectors, provide productive and social infrastructure, attain the millennium development goals, and reduce poverty,” she stated.

She reiterated that the project and the wider transformation that is taking place in the public sector have a better chance of success if the collective wisdom of all the stakeholders continues to be harnessed in the furtherance of a better Guyana for all.

PA Consulting Group has been contracted to execute the second component, which deals with the development of mechanisms to support semi-autonomous agencies and statutory bodies.

In particular, this component will target the development and implementation of a general institutional framework to classify semi-autonomous bodies and statutory bodies.