Increasing Accountability to the Poor: Participatory Public Expenditure Management Parmesh Shah Participation Coordinator The World Bank email: pshah@worldbank.org http://www.worldbank.org/participation

SDV Mission SDV will work more effectively to promote poverty reduction and sustainable development by: empowering the poor to set their own priorities, control resources and influence government, market and civil society institutions; and influencing governmental and private institutions to be responsive, inclusive, and accountable.

What is participation? Participation is the process through which stakeholders influence and share control over priority setting, policy-making, resource allocations and access to public goods and services.

The Building Blocks of Participation

Building Blocks for Participation in the PRSP Poverty reduction actions--- Poverty diagnostics Public Action Choices --- Public Expenditure Management Policy Choices--- Macroeconomic reform Poverty reduction outcomes--- Monitoring implementation and results of policies

PARTICIPATORY PUBLIC EXPENDITURE Budget Formulation Porto Alegre, Brazil Performance Monitoring Bangalore Report Card Filipino Report Card Budget Review & Analysis DISHA, India IDASA, S. Africa Civic Engagement Budget/Expenditure Tracking Uganda PETS

Key Aspects of Public Expenditure Management Budgets Unpacking, demystifying, access Pro-Poor budget analysis Budget preparations Resource allocations Expenditures Expenditure Tracking; quantitative and qualitative; utilization, quality, composition, transparency and accountability

Key Aspects of Public Expenditure Management Service Delivery Extent and quality of service delivery User satisfaction and perceptions (qualitative and quantitative) Impact Monitoring

Outcomes – Public Expenditure Management Accountable, transparent and efficient resource allocation, expenditures and service delivery Civic engagement in budgeting, expenditure tracking and monitoring service delivery

Outcomes – Public Expenditure Management (contd.) Increased ability of communities and their organizations to participate in budgeting processes, expenditure tracking and monitoring quality,quantity and effectiveness of service delivery Demystification of budgets and analysis to enable information exchange and discussions in parliament, media and civil society

Outcomes – Public Expenditure Management (contd.) Institutional arrangements (mutually accountable) between government and civil society which create space and allows for these processes to be integrated into budgetary processes. Citizen report cards as a part of PRSP (and influence MTEF) Development of participatory budgeting processes and skills in civil society institutions

Mechanisms for Increasing transparency and accountability in managing public expenditure Participatory budget formulation/review Public Expenditure tracking Citizen report cards and surveys to seek client feedback on public services Public feedback mechanisms Community/citizen monitoring of public projects/expenditures/over-all performance Public disclosure initiatives Right to information movements Social audits Participatory budget formulation/review IBASE, Brazil in budget formulation Several models in budget review, particularly the work of around 24 NGOs/CSOs affiliated with the Center on Budget and Policy Priorities Public expenditure tracking World Bank initiative in Uganda Citizen report cards and surveys on client feedback on public services Report Card initiative in Karnataka, India Filipino Report Card project of the World Bank in the Philippines World Bank Core Welfare Indicators project in Ghana, Tanzania, Mali and Mozambique Sustainable Penang Initiative American Customer Satisfaction Survey of the University of Michigan Business School and Arthur Andersen Customer satisfaction surveys of the governments of the United Kingdom, Canada, Denmark and Sweden Public feedback mechanisms Initiative of the Division of Public Feedback in Singapore Public disclosure initiatives Community Monitoring Public Information Act – India SMERU, Uganda Freedom of Information Act – USA

Analytical Framework Types and levels of citizen participation Budget formulation Budget Review Budget Expenditure Monitoring Citizen Report Cards Community/Citizen monitoring of government performance Types and levels of citizen participation Strengths, Limitations and Risks Major Pro-poor Benefits Critical success factors

Analytical Framework Budget formulation Budget Review Budget Expenditure Monitoring Citizen Report Cards Community/Citizen monitoring of government performance Potentials for increasing civil society participation Resource Implications Sustainability of strategy Opportunities for increasing effectiveness

Key Principles for Designing Accountability Systems Reciprocal Bottom up Top-down Feedback systems and loops Insitutional mechanisms to anchor feedback Access to information through multiple mediums Media, radio, internet

Key Principles for designing Accountability Systems Demystification of economic data and performance Links to decision making Organization of citizens to influence feedback and decision making Sanctions, incentives and mechanisms to influence decisions

Case Studies Filipino Citizen Report Card on Pro-Poor Services Community Expenditure Tracking in Uganda Participatory Budgeting in Porto Alegre Public Expenditure Reviews (Albania, Tanzania, Uganda) Budget Analysis and Demystification – South Africa, IDASA

Key Bank Instruments PRSP PRSC PERs SIAs PPAs CDD

Voice and Responsive Initiatives: A range of choices along a continuum Means of Amplifying Voice (Citizen’s Initiatives) Lobbying to influence program and policy formulation Citizen based M&E Implementation (including partnerships) Pre-Conditions for Voice Awareness raising and building capacity to mobilize Research for advocacy (info generation) Receptivity to Voice Consultation on client needs Setting standards Incentives, Sanctions, Controls Service Delivery ethos is organizational culture Accessible/Transparent government – new rights for clients Joint civil society – public sector initiatives Auditing Joint mngt of sectoral programs Gov. frameworks for participatory planning

SDV’s Vision for PPEM A coalition of international and national agencies promoting PPEM could bring about a major shift in public expenditure modalities in support of pro-poor reforms, given a sufficient level of effort, synergy, and outreach. a critical mass of about 15 collaborating agencies and some 500 trained PPEM practitioners, supported by a mobile cadre of specialist resource persons, could be accomplished over the next few years

SDV’s Vision for PPEM paying attention to the dissemination and use of its products (PER, Service Delivery Surveys, PETS, etc.); the PEM agenda has been externally-driven and supply-side focused by combining the “P” and “PEM” agendas, the gap between existing strategies and intended outcomes (of poverty reduction through more accountable and strategic use of public resources) can be bridged. adding the “P” to “PEM”, and the “PEM” to “P”. “marrying the Participation agenda and the PEM agenda on a global scale”

The global strategy to promote the PPEM agenda Going to scale to ensure significant impact on PEM outcomes in many countries Influence PEM outcomes not just at the national, but at sub-national levels (e.g. working towards at least 1% of the CBOs in a country having the capacity to act as sentinel groups, feeding information into citizen report cards on budget, MTEF and PRSP issues, and serving as dissemination centers) Building partnerships with receptive WB Country Teams

The global strategy to promote the PPEM agenda Building partnerships with key international agencies with multi-country outreach (e.g. ActionAid, World Vision and Oxfam) and southern NGO networks and federations (e.g. CODE Philippines) Link WB into existing networks of PPEM institutions Mobilize key PPEM practitioners to offer TOT to government and civil society groups, to build their capacity to organize in-country PPEM initiatives Provide backstopping support to Country Teams and in-country coalitions Linking Community Driven development agenda in the Bank to go beyond service delivery to accountability and local governance

Implications for CDD Community organizations linked with local accountability Citizen/community report cards on public finances Community organizations (role in budgeting in local governments) Community based expenditure tracking Multiple outcome CDD projects Direct service delivery Community organizations Improved local governance Effective and transparent resource allocations and expenditures Accountable service delivery