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1 The Politics of Public Expenditure Management Reform Tim Williamson Centre for Aid & Public Expenditure Politics of PEM Reform.

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Presentation on theme: "1 The Politics of Public Expenditure Management Reform Tim Williamson Centre for Aid & Public Expenditure Politics of PEM Reform."— Presentation transcript:

1 1 The Politics of Public Expenditure Management Reform Tim Williamson t.williamson@odi.org.uk Centre for Aid & Public Expenditure Politics of PEM Reform

2 2 Centre for Aid & Public Expenditure Paradigm Shift in Budgeting Old Paradigm Conventional Budgeting Budget Process Rules Inputs Compliance Centralised Control Bureaucratic opaqueness New Paradigm Public Expenditure Management Budget Policies & Institutions Incentives Performance Decentralised Responsibility Transparency & Accountability Politics of PEM Reform

3 3 Centre for Aid & Public Expenditure Politics of PEM Reform Paradigm Shift in Budgeting Old Paradigm Unrealism Short termism Revisions Cashbox Arrears Distorted priorities Informal systems Corruption New Paradigm Comprehensive Disciplined Legitimate Flexible Predictable Contestible Honesty Information Tranparent & Accountable

4 4 Past CAPE Research Political Commitment Crucial –But difficult to define PEM seen as a technical process –But intrinsically political Hi tech solutions proposed –But simple solutions may add more value Reforms need differing commitment levels –But a standard package always proposed Centre for Aid & Public Expenditure Politics of PEM Reform

5 5 Are the failures in PEM reform due to the naïve way in which a one size fist all package of reform tens to be promoted regardless of the political and institutional environment? Is there an alternative paradigm? Centre for Aid & Public Expenditure Politics of PEM Reform

6 6 Research Agenda Deepen understanding of the political and institutional factors and actors behind success and failures of different PEM reforms in developing countries. –Is the current PEM paradigm applicable to developing countries? –What are the factors which should influence the choice and sequencing of PEM reforms? Centre for Aid & Public Expenditure Politics of PEM Reform

7 7 Some Hypotheses Reforms should engage Political & Institutional Reality How to identify and build on the demand & opportunity for reform How to Identify the losers and address their losses Donor should support not do reform Centre for Aid & Public Expenditure Politics of PEM Reform


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