Transparency … and Accountability May 2011

OBI v. Credit Ratings (Hameed, 2010) Rationale Fundamental right Informs voice and political process Enables accountability Improves performance in public sector (?) Reduces risk of corruption (?) Reduces price of borrowing OBI v. Credit Ratings (Hameed, 2010) OBI v. EMBI Sovereign Spreads (Hameed, 2010)

Standards Fiscal Transparency Accounting and Auditing Fiscal Data Assessments Purpose (enforcement, advocacy, diagnostics, assessment) Scope (fiscal v. budget, government, autonomous bodies) Legitimacy (ownership, quality control, transparency)

Legal and Institutional Framework Organic Budget Law Legislature’s Regulations Local Government Right to Information Law Institutional Legislature Ministry of Finance Government Agencies Autonomous Entities Local Government Supreme Audit Institution

G20 Countries’ Routine Reporting, 2011 Routine Reports Plans Pre-Budget Statement Executive’s Budget Proposal Enacted Budget Public Procurement Budget Execution Reports Financial Statements Audit Reports G20 Countries’ Routine Reporting, 2011  Produced and publicly available.  Produced for internal use.

Meaningful Information Accessible Comprehensive Relevant Timely Contextual Reliable Understandable

Challenging Issues External Assistance Funds, Autonomous Entities State-owned Enterprises Tax Expenditures (exemptions, rate relief, tax deferral, credits) Liabilities (public pensions) Contingent Liabilities (guarantees, social security) Quasi-fiscal operations (financial, trade, enterprises) OECD Estimates of net unfunded liabilities of public sector pension plans on fair value basis % GDP (2008)

Off and On Budget Items

Policy Analysis Government Policy Process Spending Reviews Program Evaluations WBG CFAA / PEFA Public Expenditure Reviews Public Expenditure Tracking Institutional & Governance Reviews Development Policy Reviews

Alternative Budgets

Participation & Social Monitoring Implementation Social Auditing Participatory Monitoring Community Oversight Planning Budget Consultations Participatory Budgets

Multi-Stakeholder Initiatives EITI Extractive Industries CoST Construction MeTA Pharmaceuticals Fiscal Transparency? Government, Private Sector and Civil Society equal partners Agreed Standard Membership Application Independent Validation Publication of payments by companies and government revenues received Credible, independent audit Reconciliation by independent administrator All companies (including state-owned enterprises) participate Civil society involved in design & monitoring

Using Information Technology Efficiency of Education Spending Efficiency of Health Spending

Useful Resources