Increasing Accountability to the Poor: Participatory Public Expenditure Management

Parmesh ShahParticipation Coordinator

The World Bankemail: pshah@worldbank.org

http://www.worldbank.org/participation

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SDV Mission

SDV will work more effectively to promote poverty reduction and sustainable development by:

empowering the poor to set their own priorities, control resources and influence government, market and civil society institutions; and

influencing governmental and private institutions to be responsive, inclusive, and accountable.

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What is participation?

Participation is the process through which stakeholders influence and share control over priority setting, policy-making, resource allocations and access to public goods and services.

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The Building Blocks of Participation

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Building Blocks for Participation in the PRSP

• Poverty reduction actions--- Poverty diagnostics

• Public Action Choices --- Public Expenditure Management

• Policy Choices--- Macroeconomic reform • Poverty reduction outcomes--- Monitoring

implementation and results of policies

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PARTICIPATORY PUBLIC EXPENDITURE

Civic Engagement

Budget Formulation

Porto Alegre, Brazil

Performance MonitoringBangalore Report CardFilipino Report Card

Budget/Expenditure Tracking

Uganda PETS

Budget Review & AnalysisDISHA, India

IDASA, S. Africa

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Key Aspects of Public Expenditure Management Budgets

– Unpacking, demystifying, access– Pro-Poor budget analysis– Budget preparations– Resource allocations

Expenditures– Expenditure Tracking; quantitative and

qualitative; utilization, quality, composition, transparency and accountability

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Key Aspects of Public Expenditure Management Service Delivery

– Extent and quality of service delivery– User satisfaction and perceptions

(qualitative and quantitative) Impact

– Monitoring

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Outcomes – Public Expenditure Management

• Accountable, transparent and efficient resource allocation, expenditures and service delivery

• Civic engagement in budgeting, expenditure tracking and monitoring service delivery

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Outcomes – Public Expenditure Management (contd.)

• Increased ability of communities and their organizations to participate in budgeting processes, expenditure tracking and monitoring quality,quantity and effectiveness of service delivery

• Demystification of budgets and analysis to enable information exchange and discussions in parliament, media and civil society

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Outcomes – Public Expenditure Management (contd.)

Institutional arrangements (mutually accountable) between government and civil society which create space and allows for these processes to be integrated into budgetary processes.

Citizen report cards as a part of PRSP (and influence MTEF)

Development of participatory budgeting processes and skills in civil society institutions

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Mechanisms for Increasing transparency and accountability in

managing public expenditure

Participatory budget formulation/review Public Expenditure tracking Citizen report cards and surveys to seek

client feedback on public services Public feedback mechanisms Community/citizen monitoring of public

projects/expenditures/over-all performance Public disclosure initiatives Right to information movements Social audits

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Analytical FrameworkBudget formulation

Budget Review

Budget Expenditure Monitoring

Citizen Report Cards

Community/Citizen monitoring of government performance

Types and levels of citizen participation

Strengths, Limitations and Risks

Major Pro-poor Benefits

Critical success factors

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Analytical FrameworkBudget formulation

Budget Review

Budget Expenditure Monitoring

Citizen Report Cards

Community/Citizen monitoring of government performance

Potentials for increasing civil society participation

Resource Implications

Sustainability of strategy

Opportunities for increasing effectiveness

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Key Principles for Designing Accountability Systems Accountability

– Reciprocal– Bottom up– Top-down

Feedback systems and loops Insitutional mechanisms to anchor feedback Access to information through multiple

mediums– Media, radio, internet

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Key Principles for designing Accountability Systems Demystification of economic data and

performance Links to decision making Organization of citizens to influence

feedback and decision making Sanctions, incentives and mechanisms

to influence decisions

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Case Studies Filipino Citizen Report Card on Pro-

Poor Services Community Expenditure Tracking in

Uganda Participatory Budgeting in Porto Alegre Public Expenditure Reviews (Albania,

Tanzania, Uganda) Budget Analysis and Demystification –

South Africa, IDASA

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Key Bank Instruments

PRSP PRSC PERs SIAs PPAs CDD

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Voice and Responsive Initiatives: A range of choices along a continuum

Pre-Conditions for Voice•Awareness raising and building capacity to mobilize•Research for advocacy (info generation)

Means of Amplifying Voice (Citizen’s Initiatives) •Lobbying to influence program and policy formulation•Citizen based M&E•Implementation (including partnerships)

Joint civil society – public sector initiatives•Auditing•Joint mngt of sectoral programs•Gov. frameworks for participatory planning

Receptivity to Voice•Consultation on client needs•Setting standards•Incentives, Sanctions, Controls•Service Delivery ethos is organizational culture•Accessible/Transparent government – new rights for clients

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SDV’s Vision for PPEM

A coalition of international and national agencies promoting PPEM could bring about a major shift in public expenditure modalities in support of pro-poor reforms, given a sufficient level of effort, synergy, and outreach.

a critical mass of about 15 collaborating agencies and some 500 trained PPEM practitioners, supported by a mobile cadre of specialist resource persons, could be accomplished over the next few years

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SDV’s Vision for PPEM

paying attention to the dissemination and use of its products (PER, Service Delivery Surveys, PETS, etc.); the PEM agenda has been externally-driven and supply-side focused

by combining the “P” and “PEM” agendas, the gap between existing strategies and intended outcomes (of poverty reduction through more accountable and strategic use of public resources) can be bridged.

adding the “P” to “PEM”, and the “PEM” to “P”. “marrying the Participation agenda and the PEM

agenda on a global scale”

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The global strategy to promote the PPEM agenda

Going to scale to ensure significant impact on PEM outcomes in many countries

Influence PEM outcomes not just at the national, but at sub-national levels (e.g. working towards at least 1% of the CBOs in a country having the capacity to act as sentinel groups, feeding information into citizen report cards on budget, MTEF and PRSP issues, and serving as dissemination centers)

Building partnerships with receptive WB Country Teams

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The global strategy to promote the PPEM agenda

Building partnerships with key international agencies with multi-country outreach (e.g. ActionAid, World Vision and Oxfam) and southern NGO networks and federations (e.g. CODE Philippines)

Link WB into existing networks of PPEM institutions Mobilize key PPEM practitioners to offer TOT to

government and civil society groups, to build their capacity to organize in-country PPEM initiatives

Provide backstopping support to Country Teams and in-country coalitions

Linking Community Driven development agenda in the Bank to go beyond service delivery to accountability and local governance

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Implications for CDD Community organizations linked with local

accountability Citizen/community report cards on public finances Community organizations (role in budgeting in local

governments) Community based expenditure tracking Multiple outcome CDD projects

– Direct service delivery– Community organizations– Improved local governance– Effective and transparent resource allocations and

expenditures– Accountable service delivery