To identify why developing countries have inadequate abilities to establish sound financial management in the public sector, a study of five Latin American countries in varying developmental stages was conducted. The review of U.S. assistance activities and all other programs designed to provide the countries visited with indigenous financial and management expertise was planned and executed as a case study. A symposium followed in which a panel of experts reviewed results to define existing problems and make recommendations. Problems centered in four areas: (1) need for improvement in auditing and accounting practices to correct a lack of integrated financial information, under-utilization of computer systems, and weak auditing and internal control; (2) a shortage of trained financial managers due to low salaries, professional status, and ineffective civil service systems; (3) low government priority for training programs; (4) need for additional effort to strengthen training in financial management. Specific recommendations included urging Congress to ammend the foreign assistance act giving attention to financial management, cooperating with major donors to strengthen institutions offering training, determining needs of developing countries, strengthening U.S. capability to plan and implement management programs and urging AID (Agency for International Development) to increase focus on training in management and public administration. In addition it was suggested that an international symposium be convened to launch a coordinated effort to encourage development of a financial management improvement program. (FP)