1. Increasing Accountability to the Poor: Participatory Public Expenditure Management
Parmesh Shah
Participation Coordinator
The World Bank

2. SDV Mission
SDV will work more effectively to promote poverty reduction and sustainable development by:
empowering the poor to set their own priorities, control resources and influence government, market and civil society institutions; and
influencing governmental and private institutions to be responsive, inclusive, and accountable.

3. What is participation?
Participation is the process through which stakeholders influence and share control over priority setting, policy-making, resource allocations and access to public goods and services.

4. The Building Blocks of Participation

5. Building Blocks for Participation in the PRSP
Poverty reduction actions--- Poverty diagnostics
Public Action Choices --- Public Expenditure Management
Policy Choices--- Macroeconomic reform
Poverty reduction outcomes--- Monitoring implementation and results of policies

6. PARTICIPATORY PUBLIC EXPENDITURE
Budget Formulation
Porto Alegre, Brazil
Performance Monitoring
Bangalore Report Card
Filipino Report Card
Budget Review & Analysis
DISHA, India
IDASA, S. Africa
Civic Engagement
Budget/Expenditure Tracking
Uganda PETS

7. Key Aspects of Public Expenditure Management
Budgets
Unpacking, demystifying, access
Pro-Poor budget analysis
Budget preparations
Resource allocations
Expenditures
Expenditure Tracking; quantitative and qualitative; utilization, quality, composition, transparency and accountability

8. Key Aspects of Public Expenditure Management
Service Delivery
Extent and quality of service delivery
User satisfaction and perceptions (qualitative and quantitative)
Impact
Monitoring

9. Outcomes – Public Expenditure Management
Accountable, transparent and efficient resource allocation, expenditures and service delivery
Civic engagement in budgeting, expenditure tracking and monitoring service delivery

10. Outcomes – Public Expenditure Management (contd.)
Increased ability of communities and their organizations to participate in budgeting processes, expenditure tracking and monitoring quality,quantity and effectiveness of service delivery
Demystification of budgets and analysis to enable information exchange and discussions in parliament, media and civil society

11. Outcomes – Public Expenditure Management (contd.)
Institutional arrangements (mutually accountable) between government and civil society which create space and allows for these processes to be integrated into budgetary processes.
Citizen report cards as a part of PRSP (and influence MTEF)
Development of participatory budgeting processes and skills in civil society institutions

12. Mechanisms for Increasing transparency and accountability in managing public expenditure
Participatory budget formulation/review
Public Expenditure tracking
Citizen report cards and surveys to seek client feedback on public services
Public feedback mechanisms
Community/citizen monitoring of public projects/expenditures/over-all performance
Public disclosure initiatives
Right to information movements
Social audits
Participatory budget formulation/review
IBASE, Brazil in budget formulation
Several models in budget review, particularly the work of around 24 NGOs/CSOs affiliated with the Center on Budget and Policy Priorities
Public expenditure tracking
World Bank initiative in Uganda
Citizen report cards and surveys on client feedback on public services
Report Card initiative in Karnataka, India
Filipino Report Card project of the World Bank in the Philippines
World Bank Core Welfare Indicators project in Ghana, Tanzania, Mali and Mozambique
Sustainable Penang Initiative
American Customer Satisfaction Survey of the University of Michigan Business School and Arthur Andersen
Customer satisfaction surveys of the governments of the United Kingdom, Canada, Denmark and Sweden
Public feedback mechanisms
Initiative of the Division of Public Feedback in Singapore
Public disclosure initiatives Community Monitoring
Public Information Act – India SMERU, Uganda
Freedom of Information Act – USA

13. Analytical Framework Types and levels of citizen participation
Budget formulation
Budget Review
Budget Expenditure Monitoring
Citizen Report Cards
Community/Citizen monitoring of government performance
Types and levels of citizen participation
Strengths, Limitations and Risks
Major Pro-poor Benefits
Critical success factors

14. Analytical Framework
Budget formulation
Budget Review
Budget Expenditure Monitoring
Citizen Report Cards
Community/Citizen monitoring of government performance
Potentials for increasing civil society participation
Resource Implications
Sustainability of strategy
Opportunities for increasing effectiveness

15. Key Principles for Designing Accountability Systems
Reciprocal
Bottom up
Top-down
Feedback systems and loops
Insitutional mechanisms to anchor feedback
Access to information through multiple mediums
Media, radio, internet

16. Key Principles for designing Accountability Systems
Demystification of economic data and performance
Links to decision making
Organization of citizens to influence feedback and decision making
Sanctions, incentives and mechanisms to influence decisions

17. Case Studies Filipino Citizen Report Card on Pro-Poor Services
Community Expenditure Tracking in Uganda
Participatory Budgeting in Porto Alegre
Public Expenditure Reviews (Albania, Tanzania, Uganda)
Budget Analysis and Demystification – South Africa, IDASA

18. Key Bank Instruments
PRSP
PRSC
PERs
SIAs
PPAs
CDD

19. Voice and Responsive Initiatives: A range of choices along a continuum
Means of Amplifying Voice (Citizen’s Initiatives)
Lobbying to influence program and policy formulation
Citizen based M&E
Implementation (including partnerships)
Pre-Conditions for Voice
Awareness raising and building capacity to mobilize
Research for advocacy (info generation)
Receptivity to Voice
Consultation on client needs
Setting standards
Incentives, Sanctions, Controls
Service Delivery ethos is organizational culture
Accessible/Transparent government – new rights for clients
Joint civil society – public sector initiatives
Auditing
Joint mngt of sectoral programs
Gov. frameworks for participatory planning

20. SDV’s Vision for PPEM
A coalition of international and national agencies promoting PPEM could bring about a major shift in public expenditure modalities in support of pro-poor reforms, given a sufficient level of effort, synergy, and outreach.
a critical mass of about 15 collaborating agencies and some 500 trained PPEM practitioners, supported by a mobile cadre of specialist resource persons, could be accomplished over the next few years

21. SDV’s Vision for PPEM
paying attention to the dissemination and use of its products (PER, Service Delivery Surveys, PETS, etc.); the PEM agenda has been externally-driven and supply-side focused
by combining the “P” and “PEM” agendas, the gap between existing strategies and intended outcomes (of poverty reduction through more accountable and strategic use of public resources) can be bridged.
adding the “P” to “PEM”, and the “PEM” to “P”.
“marrying the Participation agenda and the PEM agenda on a global scale”

22. The global strategy to promote the PPEM agenda
Going to scale to ensure significant impact on PEM outcomes in many countries
Influence PEM outcomes not just at the national, but at sub-national levels (e.g. working towards at least 1% of the CBOs in a country having the capacity to act as sentinel groups, feeding information into citizen report cards on budget, MTEF and PRSP issues, and serving as dissemination centers)
Building partnerships with receptive WB Country Teams

23. The global strategy to promote the PPEM agenda
Building partnerships with key international agencies with multi-country outreach (e.g. ActionAid, World Vision and Oxfam) and southern NGO networks and federations (e.g. CODE Philippines)
Link WB into existing networks of PPEM institutions
Mobilize key PPEM practitioners to offer TOT to government and civil society groups, to build their capacity to organize in-country PPEM initiatives
Provide backstopping support to Country Teams and in-country coalitions
Linking Community Driven development agenda in the Bank to go beyond service delivery to accountability and local governance

24. Implications for CDD
Community organizations linked with local accountability
Citizen/community report cards on public finances
Community organizations (role in budgeting in local governments)
Community based expenditure tracking
Multiple outcome CDD projects
Direct service delivery
Community organizations
Improved local governance
Effective and transparent resource allocations and expenditures
Accountable service delivery