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The Politics of Public Expenditure Management Reform. Politics of PEM Reform. Tim Williamson t.williamson@odi.org.uk. 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

t.williamson@odi.org.uk

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

slide5
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

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
  • 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