2009, The World Bank Group, All Rights Reserved Participatory Budgeting Introduction to Participatory Budgeting

2009, The World Bank Group, All Rights Reserved Introduction to Participatory Budgeting What is PB? Where and how did PB originate? Where has PB been implemented? What are the dimensions of PB? Why is PB important?

2009, The World Bank Group, All Rights Reserved What is Participatory Budgeting? Participatory Budgeting (PB) is: “a mechanism (or process) through which the population decides on, or contributes to decisions made on, the destination of all or part of available public resources” –budget formulation –decision making –monitoring of budget execution

2009, The World Bank Group, All Rights Reserved PB strives to enhance local government accountability improve budget targeting promote public expenditure transparency Increased effectiveness of public expenditure Technical Aspects: Increased Effectiveness of Public Expenditure

2009, The World Bank Group, All Rights Reserved PB can promote civic engagement and social learning Citizens have the opportunity to –Gain firsthand knowledge of government operations –Influence government policies –Hold their government accountable for policy outcomes PB is an integrated mechanism promoting inclusion and participation for more accountable governance and an effective public expenditure process Social Aspects: PB as a “School of Citizenship”

2009, The World Bank Group, All Rights Reserved Created 1989 in Porto Alegre, Brazil Introduced by the Worker’s Party to inverse spending priorities Initially low participation rates (1,000 people) but gradually increased participation rates (up to 20,000 people) → Success of a political party contributed to the popularity of PB → But: PB is also popular in places where no political change is anticipated Where and How was PB Created?

2009, The World Bank Group, All Rights Reserved Where has PB been implemented? In the developed as well as developing world, in the North and South At all levels of government – from national, sub-national to local levels In small rural towns and villages and large urban metropolis promoting participation of especially marginalized populations Through national legislation as a top-down process, and bottom- up approaches by citizens and civil society groups themselves

2009, The World Bank Group, All Rights Reserved PB in Brazil 1989 – 1992 PB Worldwide PB in Latin America 1997 – 2000 PB Spreads Around the World

2009, The World Bank Group, All Rights Reserved No single model Variations possible in 6 dimensions: 1) Participation 2) Inclusion 3) Financial dimension 4) Legal dimension 5) Territorial dimension 6) Cultural dimension Dimensions of PB

2009, The World Bank Group, All Rights Reserved Dimension 1: Participation

2009, The World Bank Group, All Rights Reserved Discriminated and marginalized: –Women –Indigenous population –Youth –Other minorities Reached through: –Affirmative action programs, quota of participants –Specific budget allocation to projects benefitting marginalized groups Dimension 2: Inclusion

2009, The World Bank Group, All Rights Reserved Amount of government funds available Level of budget transparency Portion of overall budget assigned to PB –Usually 10% – 30% of general budget –In some Latin American municipalities, 100% of the general budget is assigned to PB! Dimension 3: Financial

2009, The World Bank Group, All Rights Reserved Degree of formalization Top-down: Regulated by national law Empowers stakeholders Lack of CSO involvement Rigid framework Dimension 4: Legal Degree of formalization Bottom-up: Informal processes Rely on government & civil society More ownership More dependent on political will

2009, The World Bank Group, All Rights Reserved Degree of intra-municipal decentralization –High level: PB process can be organized following existing administrative divisions –Low level: division of municipality in territorial entities inherent to the PB process can initiate decentralization process Dimension 5: Territorial

2009, The World Bank Group, All Rights Reserved Does the local culture allow for citizens to: Express dissent or criticize higher authorities in public meetings? Hold meetings in indigenous languages? For young citizens, to oppose the view of the elders? Dimension 6: Cultural

2009, The World Bank Group, All Rights Reserved Key purposes of implementing PB: Increasing efficiency in budget allocation Improving accountability and management Reducing social exclusion and poverty Increasing trust between government and citizens Strengthening democratic practices Why is PB Important?

2009, The World Bank Group, All Rights Reserved Citizens define and incorporate priorities into the public budget Allocates scarce resources to those who need them most Promotes decentralization Long-term results and monitor PB implementation Increasing Efficiency in Budget Allocation

2009, The World Bank Group, All Rights Reserved Citizens discuss budget constraints with government and optimize resources Budget decisions more acceptable and more easily approved Strengthened governance and improved accountability Improving Accountability & Management

2009, The World Bank Group, All Rights Reserved Demystifies government budgets Promotion of budget literacy and knowledge about revenue generation → Citizens learn that they have control over how taxes are collected and how public budgets are formulated → Increased government legitimacy and citizen trust Increasing Trust Between Government & Citizens

2009, The World Bank Group, All Rights Reserved Mechanisms to re-direct public resources to marginalized groups Enhanced empowerment and opportunity structures Increased understanding of citizen’s rights and duties, government functions and responsibilities Reducing Social Exclusion & Poverty

2009, The World Bank Group, All Rights Reserved Increases social capital and social cohesion “School of Citizenship” → Citizens learn about their right to information and participation → Democratic practices are taught and applied in public meetings Alternative to traditional power relationships Encourages gender equality Promotes social cohesion and harmonization Strengthening Democratic Practices

2009, The World Bank Group, All Rights Reserved Definition: technical & social aspects Origins of PB Six dimensions of variation Key purposes Review