1. Peer Partnership Program between Uruguay and New Zealand July 2009

2.  There are no links between program budgeting and strategic planning based on performance indicators. Current performance indicators should be built on the basis of a robust information system framework.  As a consequence of this situation, policy-making and decision-making processes are not informed by comprehensive evaluation systems. Therefore an evidence based policy approach faces several implementation obstacles  The lack of a proper performance institutional evaluation framework does not allow the development of individual performance based evaluation.  Uruguay is engaging in a civil service sector reform, which involves the creation of a group of senior civil servants. This implies setting up performance agreements that should introduce the contractualism logic in the public service. Benefits expected are: clear rules of the game, ownership and better accountability.  To sum up: without institutional capacities to develop information systems, there is no hope to build proper performance indicators that would connect policy with outcomes. A comprehensive and holistic reform approach depends on this key issue.

3. Comparative OECD experience is a valuable source of information and expertise for Uruguayan public sector. Taking into consideration differences in terms of path dependence, institutional and economic context as well as different administrative doctrines, there is still room to explore policy transfer processes between OECD countries and middle income countries (New Zealand – Uruguay) The true challenge is to understand the institutional setting, implementation processes, management “toolkit” and’ “policy mix” that allowed to create the appropriate linkages between budgeting, strategic planning and the development of performance indicators based on appropriate information systems.

4. General Objective  The objective of the current agreement is to strengthen the current monitoring and evaluation public policies practices and the construction of result oriented budgetary process in Uruguay Particular Objectives To improve information systems and indicators systems for the policy making process in the Uruguayan State, taking advantage on New Zealand experience. To adopt new performance management practices for Uruguayan senior public servants To adopt learnings from New Zealand's experience on information systems and budgeting process. To improve coordination processes between the Executive Power and Parliament in terms of accountability and budget allocation. Furthermore, it also aims to improve coordination inside the Executive power, drawing on New Zealand's experience.

5. Uruguay Planning and Budgeting area –OPP- Area of State Evaluation –AGEV- Budgeting Area Uruguayan Civil Service –ONSC- Treasury New Zealand State Services Commission Controller Treasury

6. Evaluation process defined and approved by the Executive Power in Uruguay Indicator systems for planning and evaluation of public policies designed and in place in Uruguayan public administration (central government) Regulation of performance agreement for senior public servants approved. Design of methodology for monitoring and evaluation of Uruguayan pubic administration (central government) Development of indicators system for budget allocation designed for Uruguayan public administration (central government) Redesign of software used for budget allocations

7. Redesigning of budget allocation and execution report from the Executive Power to the Parliament Representatives trained to understand monitoring and evaluation of public policies. Report on new agenda for monitoring and evaluation.

8. Timeline Activity M 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Mission 1 Uruguayan staff to NZ X Mission 2 Uruguayan staff to NZ X Visit R. Gregory to Uruguay X Mission 3 NZ staff arrive to Uruguay. X Feedback from New Zealand staff to Uruguay X Workshop for senior civil servants X Workshop for Representatives. X Elaboration of proposals for Uruguayan scenario. XXX Reformulation Adjustement to Uruguayan practices from experience XXXXXX Formulation of report on practices incorporated to Uruguayan State. XXX [1] [1] Esta etapa incluye validación de las matrices de indicadores en ocho ministerios, negociación política de las condiciones de la licitación, desarrollo de software, testeo de software.