Budget Process Reform in Transitional Countries by cha91095

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									Civil Society Budget Work


         Joel Friedman
  International Budget Project
      November 24, 2003
             Overview

• What are the IBP and civil society
  budget groups?
• What type of work are they doing?
  – Applied budget work
  – Budget transparency research
• Why is the work of these groups of
  interest to financial managers and AGs?
       IBP and
“applied budget work”
International Budget Project

• Started in 1997; foundation funded
• Nurture civil society budget work in
  developing and transitional countries
  – Recognizes importance of the budget
• Promote “applied budget work”
  – linking research to action in policy debates
Civil society budget groups

• Independent, non-profit NGOs
  – Support pro-poor priorities, independent
    oversight, and inclusive budget processes
• Output of budget groups
  – Provide accessible, credible materials
  – Provide training (legislature, media)
  – Analyze budgets from perspective of poor
    and marginalized groups
  – Track expenditure and monitor impacts
        Benefits of work

• Involvement of civil society in the
  budget process has numerous benefits
  – Makes budgets more responsive
  – Improves understanding of and
    commitment to budget trade-offs
  – Enhances governance and accountability
• Democratization and decentralization
 creates opportunities
 FM, AG, & CS budget groups:
  Complementary interests
• Have related oversight responsibilities
• CSOs will use accessible FM data and
  AG reports and amplify findings
  – Explain to policymakers, media, and public
  – Include as part of advocacy agenda
  – Follow-up: monitor, further investigate
• CSOs undertake research in areas of
  interest to FMs and AGs
Budget transparency research
 Budget transparency work

• Info prerequisite for other budget work
• Financial management and
  accountability are pivotal issues
  – Improve service delivery
  – Support PRSPs, poverty reduction
  – Support decentralization process
  – Reduce corruption
Defining budget transparency

• Availability of useful information
  – Timely and accurate
  – Accessible (clear, easy to understand)
• Useful information empowers
  legislatures and civil society to
  participate in the budget process
• Information + participation are mutually
  reinforcing; essential for accountability
   Budget transparency test

“Is the information adequate to enable
 meaningful participation of citizens,
 either directly with the executive or
 through their elected representatives?”
            Budget Transparency and Participation:
                    Five African Case Studies, 2002
        Research to-date

• Considerable research undertaken
  – South Africa (1999); Poland (2001)
  – Latin America 5-/10-country (2001/2003)
  – African 5-country (2002)
  – Russian local gov’t (2000-2)
• More underway
  – Turkey (Dec 2003)
  – Africa 10-country (mid-2004)
  Different research methods

• All share elements
  – Rely on IMF Code, OECD
  – Examine all phases of the budget process
• Case-study approach
• Perceptions survey
• Research-based questionnaires
  – Legal framework and practices
• Country-specific issues
    Perceptions index of
  budget transparency in
10 Latin American countries
     (November 2003)
General index of perception of
    budget transparency
100
 90
 80
 70
 60
 50
 40
 30
 20
 10
  0
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                                                r
                             Source: Latin American Index of Budget Transparency, 2003
Internal comptroller is reliable
100
 90
 80
 70
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 10                                                     NA
  0
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                                                r
                             Source: Latin American Index of Budget Transparency, 2003
External comptroller is reliable
100
 90
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 70
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 10
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                                                r
                             Source: Latin American Index of Budget Transparency, 2003
      External comptroller helps
          combat corruption
100
 90
 80
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                                                  r
                               Source: Latin American Index of Budget Transparency, 2003
          External comptroller
              has capacity
100
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                                                r
                             Source: Latin American Index of Budget Transparency, 2003
     Budget info is timely
  throughout budget process
100
 90
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                                                r
                             Source: Latin American Index of Budget Transparency, 2003
  Future plans
and conclusions
                  IBP role

• Maximize opportunities for reform
• Promote linkages between research
  rather than pursue a single approach
• Develop “core” questions
  – Research-based
  – Perceptions
• Produce a guide to research
  – Discuss methods, advocacy
           Future goals

• Build comparative global research effort
• Develop database of information
  – Regular assessments
  – Monitor progress

• Encourage stronger policy
 recommendations and advocacy efforts
            Conclusions

• Complementary interests between FMs,
 AGs, and civil society budget groups
  – CSOs use FM and AG information; can
    amplify findings and advocate reforms
  – CSO research can identify relevant issues
• Civil society participation helps build
  commitment to transparent, accountable,
  democratic budget processes
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