1. Participatory Budgeting: Potential and Limitations Council of Europe “Participatory Budgeting in South East Europe” Kelmend Zajazi, NALAS Executive Director 10th May 2011, Palais de l'Europe, Strasbourg

2. OBJECTIVES Context in South East Europe
NALAS Survey results on Participatory Budgeting
General Observations
Challenges 2

3. 3

4. Assumptions PB: representative democracy meets participatory democracy
LG without citizen participation = de-concentrated arm of national government
The failure to apply PB = failure of the local leaders, city administration & citizen activism

5. SEE Context: Local finances vs. PB
Slow Fiscal Decentralization
Financial crisis –> reduction of transfers –> affect participatory budgeting.. –> LG in “Survival Mode”
+ Local borrowing limitations (NALAS publication)
+ IPA funds centralized –> LG out of the “game”
Capital investments managed by central gov. 5

6. SEE Context: Local finances vs. PB
The other face of the coin:
In the context of financial crisis, PB even more needed to fill the gap:
- to mobilize additional community resources to build public good
- citizen awareness / fiscal discipline, etc.. 6

7. NALAS Survey GENERAL CONCLUSION
Legislation
- prescribes principles of PB
Challenge: effective implementation and mainstreaming.
To do more than what’s prescribed in the law..
Methodologies at the local level are based on the legislation or developed in cooperation with donors/projects.
PB exercises - experimental phase – exercising the process for a single decision not for the whole budget
Ownership of methodologies and guidelines
by Associations? 7

8. EFFORTS at ASSOCIATIONS’ LEVEL
NALAS Survey
EFFORTS at ASSOCIATIONS’ LEVEL
Five (5) Associations reported projects / activities
Mostly funded by donors - associations as co-implementers;
Activities focused directly on PB are rare. PB treated within the general budgeting process;
Typical activities: trainings, manuals, guides, articles in association bulletins;
Two (2) associations dealt from the policy perspective:
ALVRS - formal analysis of the legislative framework
NAMRB includes PB as part of regular policy activities
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9. EFFORTS at ASSOCIATIONS’ LEVEL
NALAS Survey
EFFORTS at ASSOCIATIONS’ LEVEL
Five (5) Associations reported projects / activities
Mostly funded by donors - associations as co-implementers;
Activities focused directly on PB are rare. PB treated within the general budgeting process;
Typical activities: trainings, manuals, guides, articles in association bulletins;
Two (2) associations dealt from the policy perspective:
ALVRS - formal analysis of the legislative framework
NAMRB includes PB as part of regular policy activities 9

10. Good Practices at ASSOCIATIONS’ LEVEL
NALAS Survey
Good Practices at ASSOCIATIONS’ LEVEL
“Community FORUMS”
– ZELS
“Sessions” stage – 6 to 8 meetings – project ideas
“Implementation” stage
Budget FORUM
Co-financing by Municipality – NGOs implement 10

11. Good Practices at Local Gov. LEVEL
NALAS Survey
Good Practices at Local Gov. LEVEL
Bulgaria
Municipality of Troyan: finances projects initiated by citizens (renovation of green city areas)
Municipality of Lovech: “public councils” in villages, residential areas, etc. 11

12. Good Practices at Local Gov. LEVEL
NALAS Survey
Good Practices at Local Gov. LEVEL
Republic Srpska of the B&H
City of Banja Luka: Public hearings. Published the draft budget in newspapers and its website. Public hearing report along with the budget proposal are submitted to the City Council. As a result budget approval by the City Council became straightforward.
Slovenia
Practiced by all LGs in several steps:
- draft budget published on website and bulletin board - comments
“Community working groups” collect inputs from citizens
LG collects comments, prioritises and presents budget options
CWG receive new draft from LG
Third draft is presented to LG Council which approves the budget 12

13. NALAS Survey
GENERAL OBSERVATIONS
Urban – Rural dimension – territorial reorganization – effects -> reference: paper of Dr. Keith Brown
Building trust – anticorruption measure (there is less corruption than perceived…) 13

14. Fundamental questions
NALAS Survey
Fundamental questions
Essence of the problem:
1. Who is in charge of the budget?
Who is in charge of the local budget? - Who elects the Mayor? Who appoints candidates for local elections? Is the party in charge or the citizens?
2. Social behavior patterns
Paradigm: the government is there to take care of us (the citizens) 14

15. Strategic Planning vs. PB
Open issue:
Strategic Planning vs. PB
Capacities are being developed for effective Strategic Planning / Local Economic Development
Participatory approach during long term (multiyear) planning vs. annual budgeting
( if SP not participatory, PB can radically change core decisions of the SP) 15

16. need special attention
Aspects which
need special attention
Multi-ethnical dimension
Social Inclusion
Displaced (in informal settlements)
Unemployed
Women 16

17. ABOUT NALAS

18. 15
MEMBER ASSOCIATIONS
4,000
LOCAL AUTHORITIES
80,000,000
CITIZENS 18

19. NALAS structure: General Assembly Presidency
2 elected officials per member
Presidency
President and 3 vice-presidents
Committee of Liaison Officers
Executive Bureau
President, Treasurer, 2 Liaison Officers, Executive Director
Secretariat
Executive Director, IT and Knowledge Centre Manager, 2 Program Officers, Administration Manager, Finance Manager
Task Force
Host Association, Projects
Task Force
Host Association, Projects
Task Force
Host Association, Projects
Task Force
Host Association, Projects
Task Force
Host Association
Projects
Pilots

20. Over 60 experts and practitioners 40 Projects developed
Priorities:
5 Task Forces: Fiscal Decentralsation, Urban Planning, Energy Efficiency, Solid Waste and Water Management, Sustainable Tourism
Over 60 experts and practitioners
40 Projects developed
Task Force
Host Association, Projects
Task Force
Host Association, Projects
Task Force
Host Association, Projects
Task Force
Host Association, Projects
Task Force
Host Association
Projects
Pilots

21. Products

22. Guidelines on Local Borrowing
(best practices/models)

23. More Info at www.nalas.eu
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