Development administration

PES covers the period 10/82-1/85 and summarizes a special evaluation (PD-AAR-485). The greatest progress has been made in the area of tax administration, where improvements in records systems, treasury functions, and computerization have been almost completely implemented. In four other areas - revenue administration, procurement, franchises and exemptions, and integrated accounting - systems have been designed and submitted by advisors, and implementation by the GOH has either been initiated or is pending. However, public employee bonding has proven difficult to implement and activities in three areas have been dropped: a central transportation project (dropped at GOH request); a program to coordinate MOF and donor activities; and a budget and staffing program in the Directorate of Taxation. Project activities have had a significant impact on MOF employee morale and interdepartmental relations. Easier access to important information has helped high-level MOF officials increase their awareness of the magnitude of the problems and has facilitated decisionmaking. The self-confidence of some MOF officials has increased; many have come to realize the importance of their functions. Interaction with project advisors has provided MOF officials with a valuable professional network and revitalized their commitment to project objectives. Finally, interdepartmental relations have improved due to interaction in activities. Lessons learned include: (1) implementing units should have line authority to enforce decisions; (2) consultants should be responsible for testing and monitoring the systems they devise; (3) while the combination of long- and short-term advisors has been effective, the assignments of short-term advisors should be long enough to allow understanding of the local situation; and (4) counterpart funds should be set aside to ensure prompt implementation of recommendations. Project sustainability is at risk due to, e.g., GOH civil service practices (causing low morale and rapid turnover) and a lack of continuous counterpart involvement in problem analysis and system design and implementation.