Theme: Governmental accounting and public financial management reforms in Latin AmericaGuest editors: Mauricio Gómez-Villegas and Andreas Bergmann

Public Financial Management Reforms (PFMR) have played a major role in the modernization of the public sector and governments at an international level. Latin America has been no exception. This Public Money & Management (PMM) theme includes contributions from Latin American academics and practitioners that systematize progress to date and identify the obstacles and challenges that the region is facing in terms of public financial management. These contributions address the experience of some of the reforms carried out in Brazil, Colombia, Chile, and Mexico.

Three research papers are included in this PMM theme.

Gómez-Villegas et al. (2020) present an overview of PFMR processes across the region. Based on interviews with key actors, documentary analysis, and their own experience as consultants, these authors identify some stimuli and obstacles in applying the accrual principle and implementing IPSAS. They also describe the current state of reforms in Latin American countries, concluding that their results move among innovation, isomorphism, and rhetoric.

de Aquino et al. (2020) study the legitimacy-building process of the governmental accounting reforms in Brazil, which seek to coincide with IPSAS. New accounting standards put the budgetary tradition of the public sector under pressure, generating imbalances in the legitimacy of the actors involved. The authors conclude that the Brazilian public sector accounting regulator and the country’s auditing agency play decisive roles in the construction of legitimacy for current reforms.

de Azevedo et al. (2020) address the effects of delaying mandatory deadlines for the execution of accounting reforms motivated by IPSAS. Using the implementation of new accounting rules in Brazilian local governments as an object of study, this paper shows that changes made in deadlines generated uncertainty, communicating an inadequate relevance to software providers and impacted the logic of the process.

Our PMM theme also contains five new development articles.

Sour (2020) introduces the harmonization process between accounting and budgetary criteria at the state level in Mexico. Santos (2020) provides arguments on the need to integrate accounting and budgetary information in Colombia. Ocampo-Salazar (2020) presents a critical evaluation of government accounting reform processes implemented in Medellin, Colombia. Arias (2020) shows the importance of accounts receivable in the financial information provided by Colombian public entities. Finally, the accounting recognition of public infrastructure in Chile is discussed by Ruz (2020).

Improving public financial management can contribute to achieving more efficiency and effectiveness in public resources management. Comparable, reliable and timely accounting and budgetary information systems can strengthen control, expand accountability, and promote true transparency. Therefore, we think that the studies that characterize and evaluate the situation of PFMR in Latin America are relevant for academics, practitioners, and public policy-makers beyond the borders of this region.