Murray Petrie Lead Technical Advisor, GIFT GIFT Stewards Meetings, Washington DC, December 1-2, 2015 #FiscalTransparency PUBLIC PARTICIPATION IN FISCAL POLICY: Approval of GIFT Principles and Next Steps

GIFT’s work program on public participation in fiscal policy  Originated with GIFT High Level Principle 10: moving beyond disclosure.  Eight country case studies.  Development of ‘Principles of Public Participation in Fiscal Policy’  A series of workshops  Public consultation in  Proposed GIFT Participation Principles.  Preparation of an associated Guide to help implement the Principles.  Development of indicators to measure participation in fiscal policy.  Proposed next steps. 2 PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles

WHY a new set of principles on public participation?  Going beyond disclosure to direct public participation:  Disclosure alone insufficient for accountability.  Participation a right of citizens.  Support existing governance systems.  To improve quality of policy design and implementation.  GIFT HL Principle 10: Citizens should have the right and they, and all non-state actors, should have effective opportunities to participate directly in public debate and discussion over the design and implementation of fiscal policies. 3 PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles

SCOPE of PUBLIC PARTICIPATION in fiscal policy Invited v autonomous participation Covers all fiscal policy and budget making activities:  The annual budget cycle (8 documents)  Fiscal policy reviews and new policy initiatives outside the annual budget cycle (revenues, expenditures, financing, assets and liabilities)  The design and delivery of public services  The planning, appraisal & implementation of public investment projects PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 4

Development of proposed GIFT Principles Initial draft norm discussed in Brasilia and Washington Series of regional (OGP FOWG), country, and researcher workshops (Bali, San José CR, Cape Town, Washington, Manila, Mexico City). Review of wide range of international and national official and civil society, academic, practitioner documents. Web-based public consultation August-October PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 5

PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 6 Proposed GIFT Participation Principles PRINCIPLE 1: Openness Provide full information on and be responsive with respect to the purpose, scope, constraints, intended outcomes, process and timelines, as well as the actual results of participation and next steps.

Pro-actively use multiple mechanisms to reach out to and provide a safe space for all, including traditionally excluded and vulnerable groups and individuals, and voices that are seldom heard, without discrimination on any grounds; [and consider public inputs on an objective basis irrespective of their source.] PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 7 PRINCIPLE 2: Inclusiveness

PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 8 Allow and support individuals and communities, including those directly affected, to articulate their interests in their own ways, and to choose means of engagement that they prefer, while recognizing there may be groups that have standing to speak on behalf of others. PRINCIPLE 3: Respect for self-expression

PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 9 Allow sufficient time in the budget and policy cycles for the public to provide inputs at each phase; engage early while a range of options is still open; and, where desirable, allow for more than one round of engagement. PRINCIPLE 4: Timeliness

PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 10 Facilitate public participation in general by disseminating complete fiscal information and all other relevant data, in formats and using mechanisms that are easy for all to access and understand, and to use, re-use and transform. PRINCIPLE 5: Accessibility

PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 11 Provide all relevant information to support each engagement, highlighting and informing key policy choices and trade-offs, identifying potential social, economic, and environmental impacts, and incorporating a diversity of perspectives; [provide timely and specific feedback on public inputs and how they have been incorporated or not in official policy or advice.] PRINCIPLE 6: Transparency

PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 12 Use a mix of mechanisms proportionate to the scale and impact of the issue. PRINCIPLE 7: Proportionality

PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 13 Conduct on-going and regular engagement to increase knowledge sharing and mutual trust over time; institutionalise public participation where appropriate and effective; and regularly review and evaluate experience to improve future engagement. PRINCIPLE 8: Sustainability

PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 14 Ensure that mechanisms for participation complement and support existing governance and accountability systems. PRINCIPLE 9: Complementarity

PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 15 Non-state actors, in turn, should be open about their mission, the interests they seek to advance, and who they represent; should observe any agreed rules for engagement and act with integrity; and should recognize that public resources are scarce and that fiscal policy entails difficult choices in seeking to advance the public interest. PRINCIPLE 10: Non-state actors Transparency

PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles responses, range of perspectives. Strong support for all principles. A number of useful suggestions, some appropriate for detailed good practices. Suggested simplification, re-ordering. Importance of identifying all potentially interested/affected and all potential impacts. Referred to additional groups that should not be excluded. Feedback from public consultation

The Principles in practice: some country examples PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles Openness Brazil and Kenya: inclusion of public participation in Constitutions and laws provides clarity about expectations and processes. 2. Inclusiveness Kenya: multiple mechanisms publicise budget participation opportunities, with range of geographic locations and mechanisms for public to provide input. Philippines: Community-Driven Development Program engages marginalised communities. 3. Respect for self- expression South Africa: Citizen-based monitoring; Philippines: Bottom-up Budgeting. 4. Timeliness Canada: engagement by executive during budget preparation and new policies, by legislature during budget consideration, by executive during program evaluation, and by SAI during auditing. 5. AccessibilityMexico: creation of the Transparency Portal for fiscal data.

The Principles in practice: some country examples PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles Transparency Croatia Fiscal Policy Committee; Canada public consultations. 7. Proportionality UK Cabinet Office requirement; principle in EU law on consultation. 8. Sustainability Brazil: public policy Councils, National Conferences and Inter-council Forums all routine part of institutional framework. 9. Complementarity Many legislatures provide for public testimony during budget oversight. 10. Transparency of non-state actors The Philippines DBM-CSO Principles of Engagement.

Big themes from Mexico OGP Summit  Real and meaningful public participation is critical to success and sustainability of OGP; need to avoid ‘open-washing’ – but how, exactly, should states engage their citizens?  Participation is a citizen right.  Participation is key to SDG Goal 16 and building inclusive institutions, and critical to achieving all the SDGs.  Strong interest in practical guidance on public participation, including from FOWG. PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 19

Issues for discussion: Approval of Proposed Principles  Any suggested revisions to proposed principles?  Views on proposed subsequent work program:  Develop good practices in public participation in fiscal policy.  Engage with IBP on review of participation questions in OBS.  Additional PEFA assessments.  Prepare a Guide to Public Participation in Fiscal Policy.  Initiate work on comprehensive measurement framework.  Establish Participation Advisory Group. PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 20

Supporting implementation of the participation principles with practical guidance  Initially, a simple expanded version of ‘principles in practice’ (slides 17, 18)  Then progressive development of a set of proposed good practices, disaggregated by the executive, the legislature, the SAI, and civil society.  Likely to be desirable to recognize diversity of country circumstances by identifying basic/good/advanced practices.  Then prepare a Guide to Public Participation in Fiscal Policy. PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 21

Initial work on measuring public participation in fiscal policy  PEFA is being revised: GIFT suggested additional participation elements be built into a number of PEFA indicators.  The result was agreement to trial a supplementary indicator on participation, subject to agreement of the country authorities and the PEFA assessment team.  Currently being trialled in Philippines as part of PEFA.  Also being piloted in South Africa by Global Integrity.  Once pilots reviewed, further assessments will be initiated in OGP countries undergoing PEFA reviews (Tunisia, South Africa, Peru, Guatemala, Costa Rica, Colombia, Paraguay). PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 22

Pilot supplementary PEFA indicator One indicator covering four dimensions of fiscal policy: 1.Public participation across the annual budget cycle: Budget preparation and Legislative approval. 2.Public participation in the design and delivery of public services (two of largest sectors). 3.Public participation in the appraisal and implementation of public investment projects (sample of largest projects). 4.Public participation in oversight processes (legislative review, and Supreme Audit). PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 23

Further planned work on measuring public participation in fiscal policy  GIFT will work with the IBP on a review of how public participation is measured in the OBS, for revisions to the next OBS  GIFT will also work on a comprehensive framework to measure public participation against the GIFT Participation Principles and Practices. PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 24

Next steps 1.Publish the GIFT Principles of Public Participation in Fiscal Policy in December From January 2016 engage with IBP on review of participation questions in OBS. 3.Assess PEFA pilot, initiate up to 8 additional assessments. 4.Establish a consultative group to review further work on public participation (development of good practices, drafting of Guide, development of a comprehensive measurement framework). 5.Aim to complete a ‘zero’ draft of good practices for Stewards meeting mid-2016, a first complete draft by December PUBLIC PARTICIPATION IN FISCAL POLICY: Draft GIFT Principles 25

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