Human Dynamics generally operates in countries defined by mixed economic set-ups. In mixed economies, productive resources are owned and operated by both the public and the private sectors.
In public-sector driven economies, direct government investment takes a central role in determining and achieving long-term economic objectives. The debate surrounding the role of the public sector in economic development reflects the nature, extent and effectiveness of economic planning; the mobilisation and allocation of resources; appropriate investment coordination and the need to address market failures.
The presumed benefits of market economies and market-friendly policies stem from institutional, cultural and legal prerequisites inter alia, legal systems that enforce contracts and validate property rights; stable currencies; adequate physical infrastructure resulting in low transport and communication costs, well developed systems of banking and insurance, formal credit markets that select projects and allocate financial loans on the basis of economic profitability with established rules to enforce repayment; market information for consumers and producers; and norms of behaviour that facilitate successful long-term business relationships. We assist Governments to reap the benefits of market economies whilst minimising the risks.
In many of the countries in which we work, governments are compounded by poor economic planning and financial management, which consequently impacts upon their capacity to raise revenues, set spending priorities, allocate and effectively deliver resources to the public. An effective public financial management system links the attainment of a country’s policy and strategy objectives to concrete spending plans, which are costed and prioritised. Annual and multi-annual budget plans are set and expenditure and cash management monitored through concrete financial accounting systems and processes and performance/results based criteria and indicators. Financial Management Information Systems are integrated IT systems to assist with the financial planning and management and can be integrated with the budget process. Legislation and internal and external auditing systems are essential to ensure that effective budget management is in place and there is financial accountability for decision-making. Gradually, as more and more countries adopt poverty reduction strategies and budget support as a mechanism for donor financing become increasingly popular, the importance of effective public financial management systems also becomes crucial.
Our Economics Department covers two major sectors: Public Finance Management and Market Regulation & Economic Development. We provide expertise to Ministries of Finance and Economy, Treasuries, government regulatory bodies such as Competition and State Aid Agencies, Financial Markets Supervisory Authorities and other public organisations with the aim of assisting them in the development of effective policies and improving their institutional capacity and efficiency.