International donors as enablers of institutional change in turbulent times?

Veronika Vakulenko

Journal of Public Budgeting, Accounting & Financial Management, 2021, vol. 34, issue 1, 162-185

Abstract: Purpose - The purpose is to explore the role of international financial institutions (IFIs) during public financial management reform in a transitional economy. In particular, the study focuses on interaction between external enablers and local actors. Design/methodology/approach - The paper is based on a qualitative study of public financial management reform in Ukraine during 1991–2014. This period is divided into stages corresponding with two projects financed by the World Bank: “Treasury System” and “Public Finance Modernization.” Findings - First, IFIs supported a Ukrainian economy weakened by financial crisis and insisted on a comprehensive reform of public financial management to facilitate recovery. By strategically addressing local challenges, eliminating local uncertainties and maintaining stable interactions, IFIs gained support from the central government. Local actors continued the reform by negotiating with other actors and getting quorum support. In the second stage, IFIs could not implement planned changes. Even though the change was well-perceived at the beginning, developed tensions between local actors were overlooked by IFIs, which resulted in loss of commitment of the State Treasury representatives. The continuous political instability in Ukraine constrained interaction between IFIs and the Ministry of Finance and reduced political will for conducting reforms. Originality/value - The study contributes to the debate on the adequacy of externally driven public management reforms in developing countries by exploring actions and interactions of global and local actors during the change in public sector practices.

Keywords: International donors; Institutional entrepreneurship; Public financial management; Reform; Central government; Ukraine (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:jpbafm:jpbafm-11-2019-0167

DOI: 10.1108/JPBAFM-11-2019-0167

Access Statistics for this article

Journal of Public Budgeting, Accounting & Financial Management is currently edited by Dr Giuseppe Grossi

More articles in Journal of Public Budgeting, Accounting & Financial Management from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().