Managing Complexity: From Fragmentation to Coordination Retrospective and Prospective

Retrospective Seminar looked at key drivers of complexity How it plays out in different countries What solutions are in place International perspectives

Themes

Theme ‘Post Its’ Theme presentation Coordination at centre Complexities of budget management happen within broader public finance and development context (more complex state) Budget offices face challenge of running complex, congested processes with eye on larger objectives Coordination at centre One approach not necessarily best As long as core functions are defined and executed Budget process needs to integrate with other political and policy processes Budget framework and classification Questionnaire responses showed weaknesses in budget frameworks Local requirements matter Classification reform a long-haul process

More theme ‘Post Its’ Managing aid flows Modern aid management may improve relationships and systems, but impact on poverty reduction downstream Specific aid instruments of secondary importance: getting information on budget and into budget process first base Coordinating recurrent and investment spending Clear policies and policy agreement critical for coordination Streamlining technical planning and budgeting tools in budget process key to coordination between budgets (Tanzania)

Even more theme ‘Post Its’ Deconcentrating key functions outside of core public service Agencies set up for different reasons Creation of agencies don’t always fulfil expectations of efficiency etc Need for re-evaluation, consolidation and exit plans Need for minimum institutional arrangements for control and management Policy, budgeting and oversight Benefits do arise from more inclusive systems Mindful design of institutional arrangements to shift legislature from rivalry to cooperation, from harmful practices to policy accountability and performance What other ‘Post Its’?

Cross-cutting Issues

Context is important Local requirements to adapt practices from elsewhere Minimum conditions creation agencies Classification Need for own development plans Need to keep it simple Change management Creating the right incentives Communication Stakeholder participation

Coordination Complex structures affect all aspects of budget and public management Institutions at the centre Different levels of government Different type of government units (public entities) International Country to country Multilateral organisations Specifics don’t matter, but Frameworks do Processes do Time tables Availability of information is key

Prospective Thoughts for Cabri work programme Comprehensive country reform self-studies within broader development trends, issues and paradigms for future seminars ‘Political interface to public finance management’ as theme for future seminar / Cabri cross-country study Development of questionnaire and database More responses to current questionnaire Further development (alignment to international frameworks, more sections, what sequence) Country study visits Development of codes and standards Seminar themes: which to take forward?