PB model by VEZfoS

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									        Phil Teece

Participatory Budgeting Unit
      South West Region
       SCAT, Taunton
      18 November 2008
  Aims and objectives of PB
            Unit
PB Unit works to empower communities in the
UK by developing participatory approaches to
          local public budgets by:

  • Finding ways of opening up public budgets to local citizens
    and challenging processes which exclude people
  • Helping people learn about public budgets
  • Working with others to develop opportunities for participation
    in public budgets
  • Developing and carrying out UK models of PB
      Communities In Control
• “… our reforms are designed to shift
  power, influence and responsibility away
  from existing centres of power and into the
  hands of communities and citizens.”
• “Representative democracy remains
  central to local democracy but we believe
  it can be reinforced not undermined by
  direct participation of citizens – each
  requires the other.”
       Communities In Control
• … we believe that citizens are capable of taking
  difficult decisions. Balancing competing
  demands and solving complex problems
  themselves, given the right support and
  resources.”
• “… only one in three people feel that they can
  influence decisions in their local area and even
  fewer young people feel that they can have an
  influence. But four in five people agree it is
  important to influence local decisions.”
         PB National Strategy

• “ PB helps people understand the
  sometimes difficult trade-offs that
  governing is about. It makes sure that
  budgets focus on the priorities people care
  about most. And it brings people together
  in a conversation about what they want
  their neighbourhood, town or city to
  become.”
    WHAT IS PARTICIPATORY BUDGETING?


• ‘Participatory Budgeting (PB) engages people
  in taking decisions on the spending priorities
  for a defined public budget in their local area.
  This means engaging residents and
  community groups to discuss spending
  priorities, make spending proposals, and vote
  on them, as well as giving local people a role
  in the scrutiny and monitoring of the process’
  DCLG ………………… or
“Local people decide how to allocate
part of a public budget”
“If it feels like we have decided …… its PB.
 If it feels like someone else has decided, it
 isn’t”

 Resident of Brazil asked to define PB
       HEALTH WARNING!
• Only a small percentage of any public
  budget will be allocated using PB

• The PB process is formally mandated and
  ‘signed off’ by the elected legislature
  ORIGINS OF PARTICIPATORY BUDGETING

• Began in Porto Alegre, Brazil in 1980s –
  city of 1.5m people
• End of military dictatorship and election of
  Workers’ Party
• Started small – 2/3% of investment budget
  but built to up to 18%
• Neighbourhood to region to city-wide
  assembly
            DEVELOPMENT OF PB

• Spread to 140 cities in Brazil
• Now in 300+ cities worldwide, including Latin
  America, Canada, USA and 25 in Europe
• Identified as good practise by international
  institutions, including World Bank, UNESCO,
  OECD, UN Habitat prize, and DFID
• 30+ authorities in UK now developing pilots
• Interest from 100+ local authorities in all
• Strong support from government
  Main features of ‘classic’ PB
             model
• % of mainstream budget devolved for PB
  allocation
• Citizens meetings/votes on priorities,
  services and budgets
• Neighbourhood and thematic structures
  which link citywide
• Annual cycle and investment plan
• Budget Matrix and Budget Council
              The PB investment cycle

       Local groups propose projects              Investment into
           and decide priorities
                                                  Communities


Technical analysis        Budget tables

                                             Departmental budgets

       Budget council report

                                       Revenue Budget

                Governing body
             The Budget Matrix
            eg. Safer Neighbourhoods

Geographic     priority Need        Population   Total % of      Resource
Area           total    total       total        Score total     available
                                                       city      (£41,200)
                                                       score
Area A             6          6            9       21   12. 9%     £5,314
Area B             3          9            6       18    11%       £4,544
Area C            12         12            6       30   18. 4%     £7,581
Area D             3          2            2        7    4. 3%     £1,772
Area E            12          2            2       16    9. 8%     £4,038
          etc      ~         ~             ~       ~        ~        ~
         Total for all areas of the city          163    100%     £41,200
          Statistics eh?

19   15    2     2     36   47

19   13    4     2     30   43

20   12    5     3     8    41
18   12    3     3     15   39
19   10    4     5     6    34
19   10    4     5     4    34
20   10    3     7     2    33
19   9     5     5     8    32
19   7     6     6     3    27
                           Statistics eh?

              playe   Won      drawn   lost   Goal diff   points
              d
Man U         19      15       2       2      36          47
Chelsea       19      13       4       2      30          43
Arsenal       20      12       5       3      8           41
Liverpool     18      12       3       3      15          39
Everton       19      10       4       5      6           34
Aston Villa   19      10       4       5      4           34
Portsmouth    20      10       3       7      2           33
Blackburn     20      10       3       7      2           33
Man City      19      9        5       5      8           32
Tottenham     19      7        6       6      3           27
In order to make informed choices re eg 5% of budget to be allocated
      by PB, residents need to know how the other 95% is spent




                             95%




                              5%
          PB PILOT ACTIVITY IN THE UK - 1


• A grants pot /initiative funding- community
    chest, NRF funds etc
•   Bidders for the money present proposals
    to residents, who vote on which to support
    (eg Sunderland, Bradford, Newcastle)
•   No annual cycle or link to mainstream
•   But very effective at engaging/enthusing
    local people
        PB PILOT ACTIVITY IN THE UK -- 2


• Small scale mainstream allocation - where
 a specific amount of devolved money –
 e.g.for environment, highways, community
 safety etc issues - is allocated by local
 citizens in a designated neighbourhood eg
 Salford, Birmingham

• Delegated ward councillor budgets eg.
 Haringey
         PB PILOT ACTIVITY IN THE UK -- 3


 Over £10 million to date, but what next?

Mainstream budgets
Setting priorities
New models
New contexts: Housing Associations,
  Neighbourhood Development Companies,
  PCTs, Police Authorities, Schools

…. and LSPs (Norfolk)
     Why Are We Doing PB?
• To increase the voice of local people?
• To strengthen local democracy?
• To enhance awareness and transparency
  of public budgets?
• To better target spending?
• To build community cohesion?
• To improve legitimacy and reputation?
• Because central government says so?
   Potential Benefits of PB
Engages more people and different people
Better targeted and cost-effective services
More mature debate about priorities
Strengthens social cohesion
Local ownership of projects/budgets/decisions
Reshapes relationship between elected
members, officer, and residents
Tackles deprivation and exclusion through
better ways of engagement
Rebuilds local democracy and trust
Builds community capacity
“Just the way in which councils do
            business”


                The left column reads, “where the money
                comes from.”

                The one on the right reads, “what the money is
                spent for.”

                Below it says, “When the administration is
                transparent, everything works smoothly


                     Budget wall in Icapui, Brazil
   Some Issues To Think About
• Initiative overload – how to generate community
  enthusiasm?
• Participative and representative democracy
• Is the expense justified?
• PB becomes party political
• Who owns PB?
• Raising expectations too high
• Loss of momentum
• Need for capacity building
• Fitting to the local context
• Managing the risks
 ‘Participatory Budgeting ---- is a tool
which gives people a real and direct say
about how funds are allocated, and helps
them to take more ownership of their
neighbourhood, to feel able to say this is
my street, my estate and I’m proud of it.’
                        Hazel Blears
“In 4 years of being a Councillor, probably the
best day of my life” Cllr Graham Middleton

								
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