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Participatory Budgeting Introduction to Participatory Budgeting

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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?

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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

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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

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• 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”

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• 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?

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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

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PB in Brazil 1989 – 1992

PB Worldwide 2000-2008

PB in Latin America 1997 – 2000

PB Spreads Around the World

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• No single model

• Variations possible in 6 dimensions: 1) Participation2) Inclusion3) Financial dimension4) Legal dimension5) Territorial dimension6) Cultural dimension

Dimensions of PB

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Dimension 1: Participation

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• 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

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• 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

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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

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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

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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

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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?

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• 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

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• 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

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• 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

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• 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

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• 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

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• Definition: technical & social aspects• Origins of PB• Six dimensions of variation• Key purposes

Review