The politics of public expenditure management reform
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The Politics of Public Expenditure Management Reform. Politics of PEM Reform. Tim Williamson [email protected] Centre for Aid & Public Expenditure. Old Paradigm “Conventional Budgeting” Budget Process Rules Inputs Compliance Centralised Control Bureaucratic opaqueness.

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The politics of public expenditure management reform

The Politics of Public Expenditure Management Reform

Politics of PEM Reform

Tim Williamson

[email protected]

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

Paradigm Shift in Budgeting

Politics of PEM Reform

Centre for Aid & Public Expenditure


Paradigm shift in budgeting1
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

Politics of PEM Reform

Centre for Aid & Public Expenditure


Past cape research
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

Politics of PEM Reform

Centre for Aid & Public Expenditure


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?

Politics of PEM Reform

Centre for Aid & Public Expenditure


Research agenda
Research Agenda which a one size fist all package of reform tens to be promoted regardless of the political and institutional environment?

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?

Politics of PEM Reform

Centre for Aid & Public Expenditure


Some hypotheses
Some Hypotheses which a one size fist all package of reform tens to be promoted regardless of the political and institutional environment?

  • 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

Politics of PEM Reform

Centre for Aid & Public Expenditure


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