Moscow Financial Forum Conference Citizens’ Participation as d Development Resource: Russian and International Experience with Participatory Budgeting.

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Presentation transcript:

Moscow Financial Forum Conference Citizens’ Participation as d Development Resource: Russian and International Experience with Participatory Budgeting Moscow, September 7, 2018 Participatory (Initiative) Budgeting in Russia: Key Findings and Avenues for Development Аleksey М.Lavrov Deputy Minister of Finance of the Russian Federation

Progress in Promoting PB *  Indicator 2015 2016 2017 2018 1. Number of regions engaged in Participatory Budgeting practices 7 16 47 51 2. Regional subsidies to implement PB programs, Rub in billions 1.4 5.1 7.7 n/a 3. Federal budget expenditures, Rub in billions - 38 4. Community and business co-financing, Rub in billions 0.4 0.7 11 5. Total cost of the projects, Rub in billions 2.4 7.0 14.5 6. Number of projects implemented 2 657 8 732 15 942 * - official responses of regional executive authorities to a MOF poll about PB practices in the year; ** - includes funding for priority project of the Ministry of Construction and HSU Shaping a Livable Urban Environment and Federal Targeted Program Sustainable Development of Rural Territories in 2014 – 2017 and to 2020 of the Ministry of Agricole of Russia.

Classification of Citizen Engagement Practices in the RF Criterion 1. World Bank’s LISP 2. People’s Initiative, People’s Budget 3. EUSPb Participatory Budgeting (EUSPb PB) 4. Priority project Shaping a Livable Urban Environment Launch 2007 2011 2013 2017 Key Characteristics Citizens select projects at community meetings Projects are competitively selected based on formal criteria 3. Integration into national administrative, budget and legal systems 4. Projects are financed from regional budgets with mandatory financing from local communities, businesses and municipalities Regional variations of PB practices and are a summary of various PB approaches Allocation of earmarked municipal funds or borrowed funds based on decisions of a commission of randomly selected members from among the project applicants and municipal representatives. The commission may propose initiatives across all areas of urban life. Federal budget subsidies of nearly Rub 25 bn are disbursed to regional budgets to support regional and municipal projects to shape a modern urban environment. The Government adopted rules for disbursement and allocation of subsidies. “Participatory design” methodology. Regional Coverage Kirov, Tver, Nizhniy Novgorod oblasts, Stavropol, Khabarovsk krai, Republic of Bashkortostan, Northern Ossetia, Jewish Autonomous Region, and others Tula, Irkutsk and Tambov oblasts 13 towns and settlements in Leningrad, Kirov oblasts, a PB project was launched in St. Petersburg in 20116 72 regions of the RF

PB: Key Development Stages in the Russian Federation 2015 2016 2017 2018 A PB Center established in MOF’s Finance Research Institute Launch of the World Bank’s Project to Promote Participatory Budgeting in the Russian Federation A medium-term PB development program in the Russian Federation is drafted PB is incorporated in the MOF’s Public Finance Management and Financial Market Regulation Program

Government Program Public Finance Management and Financial Market Regulation As adopted by Government Resolution № 340 of march 29, 2018 Key action 3.4 Implementation of the PB Development Program in the Russian Federation Action: - Put in place a regulatory framework governing PB practices in the Russian Federation; - Build an institutional infrastructure to develop PB at the regional and municipal levels; - Administrative, regulatory and information support of activities to promote PB; - M&E of PB practices. Expected outcomes: - Better public awareness about engaging in decision-making on spending priorities, selecting projects and supervising their implantation; - Higher demand for information on budget preparation and execution in the Russian Federation. Indicator 3.5 – share of regions in the Russian Federation (%) that adopted the PB program (action plan) as part of the regional government programs

MOF’s Citizen’s Budget Project: Areas Review international standards on budget management openness, design and implement special tools following best international practice. Design a methodology and monitor the transparency of budget data at the regional level of the Russian Federation. Develop options for engaging citizens in the budget process at the local level based on participatory (initiative) budgeting practice. Develop actions to enhance citizens’ budget literacy. Organize competitions of ideas for Citizen’s Budgets. Prepare and publish annual reports on best regional and municipal practice across the sections of the project (Citizen’s Budget, participatory budgeting, etc.).

Best PB Practices across Russian regions in 2017 Criterion Region 1. Share of regional budget allocated to PB projects Yaroslavl Oblast 2. Share of PB project beneficiaries Kirov Oblast 3. Comprehensive approach to promote PB Republic of Bashkortostan 4. Citizen engagement in meetings to nominate PB projects Republic of Sakha (Yakutia) 5. Enhancing budget literacy of among PB participants St. Petersburg 6. Widening citizen engagement in decision-making Tula Oblast 7. PB support infrastructure Krasnoyarsk Krai 8. PB awareness-raising campaign Stavropol Krai 9. Developing a visual identity Altai Krai 10. Implementation of income-generating PB projects Republic of Komi 11. Setting up PB in a single municipality Sosnovi Bor (Leningrad Oblast) Source: MOF Report on best PB practices in Russian regions and municipalities

Best Regional Financing of PB Projects Let’s Decide Together! project Yaroslavl Oblast Rub 443.8 million (1.04 % of total regional expenditures) allocated to finance PB projects Implemented as a priority Governor’s project A portion of the funds were taken from priority project Shaping a Livable Urban Environment supervised by the Ministry of Construction of Russia A single project office is established based on the Yaroslavl Oblast Council of Municipalities Information support in the media and on municipal websites. An internet project website www.vmeste76.ru has been designed

Best Practice by the Number of PB Project Beneficiaries LISP Kirov Oblast Share of PB beneficiaries is 65.4% of total population. A social focus on PB projects. Identifying target groups of beneficiaries of PB projects. Various types of tenders for different projects, with varying procedures and con- financing terms. PB projects addressing local community needs are treated as investment programs. Projects are evaluated based on objective (estimated) and subjective criteria combining financing, statistical and social features of the municipality.

A Comprehensive Approach to Promoting PB Participatory Budgeting In Republic of Bashkortostan Strategic indicators (from the Socio-Economic Development Strategy of the Republic of Bashkortostan : By 2030, 10% of the residents of the Republic of Bashkortostan will have been engaged in participatory budgeting projects. By 2030, 10% of the consolidated budget will have been spent through PB mechanisms. New PB mechanisms (practices) implemented in the Republic of Bashkortostan: PB mechanisms (practices) implemented in the Republic of Bashkortostan: LISP “Real Deals” “Ufa (Bashkir) Backyards” “Our Village” Income-generating projects 2019: Engaging non-profit organizations in PB; TV shows 2021: Implementing on- line PB propjets 2020 : Acquisition of communal equipment Engaging school students in PB

Best Practice in Engaging Citizens in Meetings to Select PB Projects Local Initiatives Support Program (LISP) Republic of Sakha (Yakutia) Share of municipal residents who took part in meetings: - Preliminary meetings – 28.2%; - final meetings – 14.1%. Effective tool to engage citizens through the media, social networks, and messengers. Identifying relevant and urgent issues during preliminary project reviews. Recording the decisions adopted by residents and the number of participants attending final meetings by taking minutes, photos and videos of the event. High level of citizen co-financing of PB projects (7.4% of total project cots).

Thank you!