Risks and Unintended Consequences of the Reform

Abstract

Abstract All reforms carry risks and they may have unintended consequences. This chapter discusses these features of the PFM/IC reform process. It provides some examples of where risks and unintended consequences have occurred. Perhaps the greatest risk and the one most likely to occur is that of a ‘fake’ reform. In the author’s experience this is the one for which there is some evidence because those responsible for implementation tend to be focussed on the bureaucracy associated with the reform, because it provides ‘evidence’ of implementation, but there is no substance. The managerial implications are completely overlooked. The end result is higher costs because of the added bureaucracy but no tangible benefits in terms of improvements in public value. An aim of this guide is to avoid these risks and unintended consequences from occurring.

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