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Fiscal Reform Needs More Than Strong Finance Ministries

Africa - INTER PRESS SERVICE - Wed, 06/17/2026 - 07:39

By Warren Krafchik and Paolo de Renzio
Jun 17 2026 (IPS)

In the human body, connective tissue rarely gets the attention given to the heart, lungs or brain. But without it, even the strongest organs cannot function as a system. It binds, supports and connects a healthy body.

Fiscal systems work in a similar way.

Warren Krafchik

For decades, the global public finance community has focused heavily on strengthening the “organs” of fiscal management: finance ministries, budget systems, fiscal rules, audit offices and transparency tools. This work has mattered. Strong public finance institutions are essential to sound fiscal management.

But they are not enough.

The fiscal crisis is already here, and so is the crisis of trust around it. As governments face harder choices over debt, climate costs, slower growth, inequality and public investment, the challenge is no longer simply to balance the books. It is to make fiscal choices more accountable, equitable and trusted by the public.

That cannot be achieved by strengthening finance ministries or other individual institutions one by one. It requires investing in the connective tissue between these institutions: the relationships among legislatures, auditors, courts, civil society, journalists, reformers inside government and citizens that support legitimacy and effective scrutiny.

Case in point: Brazil, Indonesia and South Africa have all strengthened public finance institutions in important ways, yet still face deep challenges around oversight, legitimacy and equity, according to the synthesis paper, Strengthening Fiscal Ecosystems for Accountability and Equity. In each country, formal systems may look strong on paper, but fiscal decisions can still be shaped by political capture, weak scrutiny and unequal access to power.

The reason is that public finance is not simply a technical exercise. It is a political one. Budgets determine who gets health care, education, infrastructure, climate protection and social support. Tax systems determine who contributes and who is spared. Debt decisions can bind future generations. Fiscal choices are among the clearest expressions of a government’s priorities.

Paolo de Renzio

Yet too often, reform has treated accountability as something that can be solved inside one institution at a time. Strengthen the finance ministry. Improve the audit office. Support parliament. Publish more budget data. Each of these reforms can be valuable. But accountability does not happen simply because individual institutions have better rules, mandates or tools.

Accountability happens when those institutions are connected to one another and are able to collaborate. It happens when civic actors can engage them, when media can investigate, when courts can intervene where necessary, when legislatures can scrutinize executive decisions, and when public pressure can turn information into consequences.

Such a “fiscal ecosystem” includes ministries of finance, legislatures, supreme audit institutions, courts, civil society organizations, journalists, reformers inside government, social movements, citizens and the relationships among them. It also includes the informal realities that shape how power actually operates, such as party bargains, patronage networks, institutional rivalries, elite coalitions and unequal access to decision-makers.

This gap between formal rules and real power is where many fiscal reforms fall short. A country may have a budget law that clearly defines the role of parliament, but legislators may lack the independence or capacity to challenge executive choices. A supreme audit institution may produce strong reports, but those findings may go nowhere if the executive does not act on them. Civil society organizations may uncover misuse of public funds, but struggle to get a response from those with the power to impose sanctions.

Brazil, Indonesia and South Africa each followed different reform paths. But across all three cases, especially during crises, accountability often depended not on a single institution performing perfectly, but on formal and informal collaborations forming across the fiscal ecosystem. Auditors worked with communities. Media investigations collected evidence and amplified public pressure. Courts intervened when other institutions fell short. Reformers inside and outside the state found ways to connect scrutiny with action.

These efforts are often fragile. They are also essential.

The global public finance community should draw a clear conclusion. The next phase of fiscal reform must move beyond an institution-by-institution approach, and invest in the relationships, coalitions and channels that connect oversight actors and allow accountability to take root.

For international financial institutions, development agencies and technical assistance providers, this means recognizing that fiscal legitimacy cannot be built through executive capacity alone. Supporting ministries of finance remains important, but it should be matched by greater attention to the institutions, inside and outside government, and the connections between them that balance fiscal power.

For ministries of finance, it means supporting connected oversight systems by responding in a timely way to legislature and audit processes and recommendations and creating additional formal spaces for civil society organizations and communities to contribute to policy choices and implementation. Oversight bodies need pathways for their actions to matter.

For civil society and media, it means ensuring that transparency is not treated as the end goal but as a starting point. Public access to fiscal information is only powerful when citizens, journalists and civic actors have the resources, protections and channels needed to use it.

For philanthropy, the implication is especially urgent. Too much support for accountability work remains fragmented by institution, sector or issue area. Funders have a critical opportunity to invest in the connective tissue executive, oversight, and civic actors that makes fiscal accountability possible. That means supporting civic actors who can follow public money, connect budget decisions to lived experience, work with the ministries of finance and oversight institutions and help communities demand answers when public resources are at risk.

Fiscal reform must therefore be understood as a democratic project, not simply a managerial one. Strong finance ministries are necessary. But they cannot carry the burden of legitimacy alone. If governments want citizens to accept difficult trade-offs, they must build systems where people can see how decisions are made, contribute to those decisions, challenge abuses of power and trust that public resources are being used in the public interest.

The future of fiscal reform will not be won by strengthening one institution at a time. It will depend on building fiscal accountability ecosystems strong enough to keep public finance connected to the public good.

Warren Krafchik is a Public Finance Consultant at the Trust, Accountability and Inclusion Collaborative and Co-lead of the Strengthening Fiscal Ecosystems project.

Paolo de Renzio is a Senior Lecturer at the Brazilian School of Public and Business Administration of Fundação Getúlio Vargas in Rio de Janeiro, and Co-lead of the Strengthening Fiscal Ecosystems project.

IPS UN Bureau

 


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UNICEF: Overlapping Climate Hazards Threaten Children’s Quality of Life

Africa - INTER PRESS SERVICE - Tue, 06/16/2026 - 14:13

A group of children sit near a garden in Tamasgo Primary, in Burkina Faso, which is one of the most climate-vulnerable countries in the world. Credit: UNICEF Office in Burkina Faso

By Oritro Karim
UNITED NATIONS, Jun 16 2026 (IPS)

A new report from the United Nations Children’s Fund (UNICEF) highlights the vast, overlapping climate threats affecting children worldwide, which is leaving them increasingly vulnerable to escalating risks across health, security, and education.

The report, Children’s Climate Risk Report, emphasizes that while these risks are most pronounced in heavily vulnerable regions in the Global South—such as South Asia and sub-Saharan Africa—nearly half of the world’s children are exposed to at least three climate hazards, with some exposed to as many as six at once.

“Across the globe, millions of children are now facing multiple climate threats without the necessary services to cope,” said UNICEF Executive Director Catherine Russell. “They are experiencing extreme heat that causes heatstroke and dehydration. Their homes and schools are being destroyed by storms and floods. Devastating droughts are limiting their access to food and water. And in many cases, the intensity of these hazards is increasing with each passing year.”

“We must invest more in adapting essential services to the impact of climate change,” Russell added. “Through political will, partnerships, and collaboration with young people, the case studies in this report prove that progress is possible. But the scale and ambition of action must be rapidly accelerated to ensure that every child is protected from climate impacts.”

According to UNICEF’s findings, nearly every child globally is now affected by air pollution. Additionally, over 296 million children live in areas that are exposed to a dangerous combination of prolonged drought, extreme heat, and heatwaves, while another 115 million simultaneously face droughts, extreme heat, and tropical storms.

The agency stresses that these risks often overlap across multiple regions, noting that riverine and coastal floods, fires, and sand and dust storms have caused widespread displacement, disruptions to livelihoods and schooling, the spread of infectious diseases, or various forms of health and food insecurity.

Nowhere are the consequences of these overlapping threats more evident than in sub-Saharan Africa and South Asia, which have been described by climate experts as the two most climate-vulnerable regions in the world. These regions are at a heightened risk primarily due to high environmental exposure and a limited capacity to respond. The resulting shocks overwhelm local health systems, cripple fragile infrastructure, and leave entire communities deprived of basic, lifesaving services.

The report notes that over 4 million children in the Sahel region are exposed to heatwaves, extreme heat, and sand and dust storms. Meanwhile, South Asian countries like Bangladesh, Myanmar and Pakistan, face more hazards at once and at higher intensities than anywhere else in the world.

“While some countries may face a single devastating event, such as a tropical storm that can wipe out an entire island, many countries in Asia are dealing with a combination of threats, from floods and storms to extreme heat,” Rohini Sampoornam Swaminathan, UNICEF Statistics and Monitoring Manager, tells Inter Press Service. “Children may cope with one or two shocks, but after three, four or five, families’ ability to respond becomes severely strained. Moreover, risk is not only about exposure to hazards, but it is also about the availability and accessibility of essential services. For children without reliable access to health care, nutrition, or water and sanitation, even a moderate flood or heatwave can become life‑threatening.”

On 20 January 2026, an aerial view of the flooded Xai Xai village after extreme rainfall in Gaza Province, Mozambique. Credit: UNICEF/Guy Taylor

According to the report, in 2024, approximately 634 million children lacked access to safe drinking water, over 1 billion lacked access to sanitation services, and 489 million lacked access to basic hygiene services. Currently, nearly 160 million children live in areas where water systems are severely strained, and droughts are extremely pronounced, while another 270 million children live in flood-prone zones where less than half of the population has access to adequate sanitation.

As a result, the World Health Organization (WHO) projects that there could be over 250,000 additional yearly deaths by the 2030s from malaria, diarrhoea, heat stress, and undernutrition. These consequences are dire for children, particularly those living in fragile contexts where health systems and local infrastructures are strained.

In Pakistan, children face extreme vulnerability due to glacial melt and erratic rainfall patterns, which frequently trigger large-scale flooding. The historic 2022 floods affected over 33 million people—roughly half of whom were children—and stripped more than 5.4 million people of access to clean water, leaving them at a heightened risk of contracting infectious diseases and waterborne illnesses. This has been compounded by frequent heatwaves and prolonged droughts, with temperatures routinely exceeding 48 degrees Celsius, or 118.4 degrees Fahrenheit, which have caused high rates of severe dehydration and acute malnutrition, as a result of decimated crop yields.

Without urgent intervention, UNICEF projects that an additional 28 million children globally could experience acute malnutrition and stunted growth by 2050. In sub-Saharan Africa alone, approximately 10 million more children are expected to suffer from stunted growth by 2050. Over the last few years, increasingly frequent and destructive climate shocks have devastated food systems around the world, leaving roughly 66 percent of children under five—approximately 440 million—to live in severe food poverty.

Additionally, climate shocks are increasingly stripping children of their education, with UNICEF recording nearly 242 million students across 85 countries and territories who have their education disrupted by climate-induced hazards in 2024 alone. The agency has also recorded rising rates of school closures, absenteeism, and worsened school performance. Swaminathan noted that when classrooms become too hot, children struggle to concentrate, learn and stay engaged.

“Heat increases dehydration, fatigue and absenteeism, especially in schools without cooling, shade or reliable water,” she added. “As temperatures rise, schools are also closing more often. While closures protect children’s health, they expose how unprepared many education systems are for a hotter world. When children lose learning, societies lose potential. Repeated disruptions affect education outcomes, future earnings and economic growth, while deepening inequalities.”

It is estimated that disrupted education across low- and middle-income countries could yield future economic losses of up to USD 11 trillion in lifetime earnings. The report further notes that establishing climate-resilient education systems is crucial in preventing these losses and protecting children from facing adverse mental health impacts and deepened social and economic inequalities.

Furthermore, volatile climate shocks around the world continue to displace entire communities and push millions of children into insecurity. Between 2016 and 2023, UNICEF recorded over 62 million internal displacements of children as a result of climate-induced hazards—or roughly 21,000 child displacements per day.

“When families are forced to move because of climate shocks, children face heightened risks of violence, exploitation and family separation, both during the journey and in temporary settlements. These risks increase when displacement is sudden, support networks collapse, and protection systems are overwhelmed,” said Swaminathan. “Climate-related displacement acts as a threat multiplier. It weakens livelihoods, strains fragile services and deepens existing tensions.”

Child protection services around the world have been pushed to the brink of collapse as a result of the vast scale of needs triggered by climate-induced displacement. This strain has been linked to a significant rise in violence, exploitation, abuse, and childhood trauma, with many families resorting to negative coping mechanisms such as child labour and child marriage.

According to UNICEF estimates, rates of child labour have surged in recent years, particularly in areas with agriculture-dependent economies, where roughly 70 percent of this exploitation can be found. Additionally, communities frequently turn to child marriage to secure short-term financial stability following severe climate shocks. The consequences are particularly dire for girls who are married before the age of 18, who face a significantly higher risk of domestic violence, alongside severely compromised health and economic outcomes compared to those who marry later in life.

To accelerate climate action and protect millions of children from these escalating risks, UNICEF is urging global leaders and the private sector to prioritize investments in renewable energy, underscoring that this is a critical first step in reducing the intensity of climate shocks. Additionally, the agency stresses the importance of integrating climate-resilient schools, water systems, and healthcare facilities into national emergency plans and expanding climate education to ensure that the next generation has a voice in decisions that affect their lives.

“UNICEF’s message is clear: invest in children’s resilience, especially the most vulnerable. Invest in the communities they live in and the social services they depend on, and ensure these services continue to function during and after climate shocks,” said Swaminathan. “The climate crisis is a child rights crisis. We know where children are at risk and what they face. Now we must act.”

IPS UN Bureau Report

 


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- Agenda / ,

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