Chapter four: Economic governance and management 427. Some stakeholders argue that progress in fiscal decentralisation has been slow because of rivalries among ministries that attempt to retain control over resource allocations and use. Meanwhile, the political institutions that brought ministers to power do not appreciate the need for change. This makes the system less credible. 428. The politicisation of key public sector positions, such as principal secretaries, adversely affects the efficiency and effectiveness of public service delivery as well as government transparency. iii. Recommendations 429. For Lesotho to adopt sound, transparent and predictable economic policies, the APR Panel recommends: • The finalisation and implementation of the Lesotho draft medium-term growth strategy. This should provide a basis for economic and social policy making as well as effective budget planning. The strategy would also provide a framework for the efficient mobilisation and use of resources for accelerated and sustained growth. This process will be improved if the government were to develop a long-term, comprehensive national development plan. (All economic ministries) • The completion of the decentralisation process, which is essential for Lesotho to improve service delivery, transparency and accountability. This requires political decentralisation and meaningful fiscal decentralisation. (Parliament, MoLG) • The adoption and implementation, by government, of a more rigorous public awareness strategy so as to improve public participation in policy making in general and the decentralisation process in particular. Citizens need to have a clear idea of their constitutional and legal rights and responsibilities in this regard. (Ministry of Communications, Science and Technology, MoFDP) Objective 3: Promote sound public financial management i. Summary of the CSAR Policy framework 430. The PSIRP, which commenced in 2001, underpinned various measures to improve the quality and efficiency of public service delivery. In this context, efforts have been made to improve efficiency as well as accountability and transparency in public sector management by integrating medium-term planning and annual budgeting procedures into the MTEF. By 2006, the MTEF had been piloted in six ministries that developed detailed budget framework papers as inputs into the setting of budget ceilings. 431. The PSIRP links all elements of the public finance management system and provides the basis for coordinating donor support. It has three broad elements: planning and budgeting; accounting and reporting; and auditing and oversight. The PSIRP also provides for capacity building in economic 119