Noel Hepworth, former Chief Executive, Chartered Institute of Public Finance and Accountancy CIPFA and author of Public Financial Management and Internal Control, has raised critical concerns about the global push for advanced financial techniques in public sector management.
International bodies like the World Bank, IMF, OECD, and the European Commission, alongside organizations such as CIPFA, have long advocated for governments to adopt modern standards like risk management, accrual accounting, internal control, and performance budgeting. Yet, Hepworth argues, these reforms often fail to deliver sustainable improvements to public expenditure quality, leaving their true impact on citizens questionable.
Hepworth emphasizes that the success of these technical reforms hinges on robust management capacity, a factor frequently overlooked by reform advocates. “Investing in sophisticated financial systems is futile if managerial capability is weak or absent,” he warns. In countries grappling with corruption or ineffective expenditure controls, implementing complex techniques is often inappropriate. He criticizes the lack of focus on managerial issues, noting that technical advancements cannot succeed in isolation from strong organizational frameworks, including delegation and accountability.
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Another flaw Hepworth highlights is the misguided measurement of reform success. Governments and institutions typically assess progress based on compliance with technical standards or the presence of legal frameworks, rather than evaluating tangible improvements in public expenditure quality. “The focus should be on value for money, which is what matters to citizens and drives votes,” he asserts, stressing that effective policy delivery relies heavily on management quality, not just technical compliance.
Hepworth also points to challenges in translating reform guidelines, often drafted in English, into local contexts. Unwritten assumptions about management practices embedded in standards like internal control are rarely addressed, undermining their effective application. He urges a shift in perspective: reforms must prioritize managerial capacity and measurable outcomes over technical adoption. Without this, Hepworth warns, the promise of enhanced public financial management will remain unfulfilled, failing to deliver the efficiency and value that governments and their citizens seek.
