The impact of donor support on public financial management and fiscal reform in developing countries : the case of Jordan

Abstract

In recent decades, many developing countries have received external assistance to implement economic reforms, with public financial management (PFM) and fiscal reforms being critical components. Jordan, facing a series of crises, requires substantial support in these areas. This study aims to evaluate the impact of donor support on fiscal reforms in Jordan and explore its historical context. The investigation involves analysing the design, implementation, and management of PFM and fiscal reform initiatives which cover revenue management, public budgeting, budget execution, accounting, financial reporting, and public expenditure management. This investigation addresses strategies and tools employed, methods for measuring performance, mechanisms promoting sustainability, and techniques supporting reform initiatives. Critical theory is adopted to understand power dynamics, interests, and politics influencing and shaping change and reform efforts in Jordan. Using an interpretive approach within the critical research paradigm, the research triangulates findings from contextual analysis, surveys, and interviews to ensure objectivity, credibility, validity, and reliability. The study provides a comprehensive understanding of the key mechanisms driving PFM reform and the factors influencing its success. It identifies several critical factors for successful PFM reform, emphasising the need to prioritise political commitment, collaboration, government ownership, communication, and accountability. The research notes challenges related to sustainability and adaptability and provides insights to inform policy and strategic planning for donor agencies and recipient governments. It encourages future studies to enhance the understanding of PFM reforms in other countries, improve generalisability, and explore the importance of accountability in improving the performance of PFM reform initiatives.