As a function of good governance, Financial Management (FM) forms an integral part of the development process in all Bank-financed operations and country institutional strengthening efforts, and is crucial to achieving the World Bank Group’s (WBG) goals of ending extreme poverty and boosting shared prosperity in a sustainable way.
The Bank’s FM work has dual objectives that are closely intertwined: to support borrowing countries in improving their financial management performance and capacity while encouraging public disclosure and transparency, and to provide reasonable assurance on the use of Bank loan proceeds. Sound public financial management (PFM) ensures accountability and efficiency in the management of public resources, and is an essential underpinning to improve governance and fight corruption.
Building Country Capacity
At the country level, FM staff collaborate across the WBG, and with international accounting and auditing bodies and donor partners to help countries strengthen their FM capacity in both the public and private sectors. FM specialists focus on helping countries develop sound financial systems and practices, including a strong accountancy profession with quality corporate financial reporting, efficient delivery of services, and enhanced accountability and transparency in the use of public resources.
FM Policies in Bank-financed Operations
In accordance with the Bank’s operational policies and procedures, FM specialists work with partner countries to design financial management and disbursement arrangements and to supervise and support the performance of Bank-financed operations. Since 1947, the World Bank has funded over 12,000 development projects, via traditional loans, interest-free credits, and grants.
Engagement with Global Partners
At the international level, the WBG engages in global partnerships with development partner organizations to promote FM standards and FM capacity development initiatives. Staff also play leadership roles in partnerships with bilateral and multilateral donors to coordinate and harmonize FM policy and operational practices, which enhances development effectiveness.