1. Performance Budgeting in Argentina: First Steps
Bill Dorotinsky
November 2000

2. Elements Two separate projects Performance Agreements
formerly lead in Economy, now Jefetura de Gabinete
focus on changing agency management
‘Program Evaluation’
lead by MECON
focus on gathering output data

3. Performance Agreements
3-levels of Agreements
Minimum Standards
develop mission statement,
identify major objectives,
align current activities with objectives,
align budget with activities,
develop indicators for activities,
set performance targets for activities,
develop work plan for implementing
Organizational Self-evaluation
minimum standards plus benchmark performance levels per activity
Organizational Reinvention
Organizational self-evaluation standards plus reorganization

4. Experience Started in late 1998 Piloted in 5 small agencies
Will sign first agreement next month
Changes in organization of project, leadership slowed developments
Unclear ‘incentives’
New law requires agreements for all agencies

5. “Program Evaluation” Gathering performance information
“Combining” financial and physical performance
publishing quarterly reports of activities and budget execution
working on basic proportional measures
output per staff
cost per output

6. Problems encountered in both projects
In implementation
Data integrity
Incentives for agency participation
Limited line Ministry staff capacity and resources
ADP
Staff - available and skilled
Over-all
Leadership and support
Ultimate use of data for decisions

7. Strengths and Weaknesses
gradualist approach (start small, pilot test)
work with line ministries to change management, business processes
at least in pilot stage, one-on-one attention to each agency
recognizing capacity limitations
Weaknesses
sponsorship: engine of reform
use of information, results