Usefulness of WBI materials as external research CABRI 3rd Annual Budget Reform Seminar Addis Ababa, 28-30 November 2006 Alta Fölscher

Introduction Purpose of presentation two-fold Structure Introduce CABRI members to series of publications on PFM Illustrate usefulness of research in informing budget reforms to strengthen policy, budget link Need for vertical accountability mechanisms Institutions that enable vertical accountability Structure Share purpose and content of publications Present on particularly two papers out of series

WBI Series on PFM Governance for Public Expenditure and Financial Accountability series Four titles published in 2005, 2006 Fiscal Management, Public Services Delivery, Public Expenditure Analysis, Intergovernmental Fiscal Transfers: Principles and Practice Five titles published in 2007 Budgeting and Budgetary Institutions Performance Accountability and Combatting Corruption Participatory Budgeting Local Government Financial Management Local Budgeting Tools for Public Sector Evaluations Aimed at practitioner But draws on insights from academic literature Provides useful conceptual frameworks and practical guidance Examines issues to level of detail, eg breaking down performance Examples and case studies Supported by training materials

Content glimpse Budgeting and Budget Institutions Fiscal performance; transparency and accountability; coverage; capital budgeting; budget methods and practices; performance budgeting; accrual accounting; budget preparation and approval; budget execution; ICTs in budgeting; strengthening PEM in Africa; post-conflict countries; 2 country case studies. Performance Accountability and Combatting Corruption Performance-based accountability; efficiency integrity and capacity; E-government; networks and collaborative solutions; role of political institutions; legal and institutional framework for accountability to citizens; combatting corruption; external accountability; revenue corruption; role of audit; performance auditing; parliamentary budget offices; public accounts committees. Participatory Budgeting Overview looking at opportunities and a guide; regional section including Africa, Eastern Europe, Asia, MENA, Latin America; country case studies including Bangladesh, India, Philippines, Russia, Ukraine, South Africa, Thailand

Local Government Series Local Government Budgeting Fiscal Administration, including forecasting revenues, local fiscal discipline, combating corruption; and Local Budgeting including budget forecasts and process; Citizen-centred performance budgeting; assessment of performance and capital budgeting Local Government Financial Management Financial accounting and reporting; Cash Management; Procurement; Internal controls; Debt management; Internal Audit, External Audit

Illustrative texts Chose area highlighted by first session Vertical performance accountability Role of civil society Key question: What can research tell us about how to operationalise benefits of citizen-centred performance accountability Draw on two papers in Performance Accountability volume Jenkins, R: Role of Political Institutions in Promoting Accountability Russel-Einhorn, M. Legal and Institutional Frameworks Supporting Public Sector Accountability to Citizens for Service Delivery Performance: Opportunities and Limitations

Role of political institutions promoting accountability Key Accountability Concepts Relationship Not any single relationship, but system Interdependent and reinforcing Vertical and horizontal Formal and informal Answerability Explanation and information Sanction Adjudication Deterrent, capacity Accountability and responsiveness Application to PFM systems and citizen engagement Analysis of political institutions Electoral systems, parliament, formal structures, civil society,

Public Sector Accountability to Citizens Mechanisms of voice Voice mechanisms allow public to influence final outcome of a service through some form of participation or articulation of protest or feedback Decades of top-down supply driven approaches to reform have failed to provide better outcomes Alternative is a demand-driven citizen-centred governance approach Theoretical and empirical evidence of effectiveness Better public policy and implementation More transparency and accountability Greater trust in government More active citizenship and engagement

What kinds of mechanisms create effective citizen voice Background factors and specific factors Background factors Deeply imbedded in the social, economic and political environment Related to commonly identified risks regarding voice mechanisms Also administrative traditions and legacies Specific factors Institutional design Resource availability Capacity of civil society and key government actors

What kind of processes maximises impact of citizen voice Affirmative, balanced representation institutions Who is consulted? Notification and agenda setting institutions Advance notice; effective media; access to agendas; timely provision of documentation Transparency and documentation institutions Budget documentation; spending reports; performance information; annual reports; audit reports Affirmative approach Affirmative voice institutions Processes to elicit information on citizen concerns, demands and priorities Part of main budget process Should be mandatory, not discretionary Dissemination and report back on inputs

Processes cont. Deliberation and decision-making institutions Transparency Reporting, feedback and evaluation institutions Formal systematic institutions to make available data on implementation Participation in monitoring of implementation, audit Complain and redress institutions Complaint procedures; ombudsman; public protector; courts

Locating materials Printed Books can be ordered from http://www.worldbank.org/reference/ Books will be available for download free of charge In mean time request chapters from Kaitlin Tierney at WBI ktierney@worldbank.org Training materials and further papers: http://web.worldbank.org/WBSITE/EXTERNAL/WBI/EXTWBIGOVANTCOR/0,,menuPK:1740542~pagePK:64168427~piPK:64168435~theSitePK:1740530,00.html