The second public expenditure managementand financial accountability review (PEMFAR II) reportprovides analysis of the fiscal space outlook, a review ofpublic expenditure management, including of the publicinvestment management system, and assessments of the publicfinancial management and public procurement systems. Thereview covers the period since the 2004 PEMFAR until 2009and the detailed analysis of public expenditures focuses onthree key sectors (education, health and rural development)which represented about 52 percent of the voted budget in2007 and 2008 and are the pillars of Niger's secondpoverty reduction strategy paper (PRSP II). The PEMFAR II acomprehensive short and medium term (2010-2012) reformagenda which will assist the Government to prepare and adoptan action plan to improve the effectiveness of publicresources management in Niger. This report constitutes themain report (volume one) of the PEMFAR II. Volume two of thePEMFAR II provides the detailed report of the evaluation ofthe public procurement system. The summary, after the aboveoverview, reflects the underlying themes that emerge fromthe assessments of fiscal space outlook, public expendituresincluding public investment management, the public financialsystem, and the public procurement system. At the end, thesummary a set of targeted priority actions aimed atimproving the developmental impact of public expenditures.