Managing Complexity: From Fragmentation to Coordination Retrospective and Prospective

1. Managing Complexity: From Fragmentation to Coordination Retrospective and Prospective

2. Retrospective • Seminar looked at key drivers of complexity • How it plays out in different countries • What solutions are in place • International perspectives

3. Themes

4. Theme ‘Post Its’ • Theme presentation • Complexities of budget management happen within broader public finance and development context (more complex state) • Budget offices face challenge of running complex, congested processes with eye on larger objectives • Coordination at centre • One approach not necessarily best • As long as core functions are defined and executed • Budget process needs to integrate with other political and policy processes • Budget framework and classification • Questionnaire responses showed weaknesses in budget frameworks • Local requirements matter • Classification reform a long-haul process

5. More theme ‘Post Its’ • Managing aid flows • Modern aid management may improve relationships and systems, but impact on poverty reduction downstream • Specific aid instruments of secondary importance: getting information on budget and into budget process first base • Coordinating recurrent and investment spending • Clear policies and policy agreement critical for coordination • Streamlining technical planning and budgeting tools in budget process key to coordination between budgets (Tanzania)

6. Even more theme ‘Post Its’ • Deconcentrating key functions outside of core public service • Agencies set up for different reasons • Creation of agencies don’t always fulfil expectations of efficiency etc • Need for re-evaluation, consolidation and exit plans • Need for minimum institutional arrangements for control and management • Policy, budgeting and oversight • Benefits do arise from more inclusive systems • Mindful design of institutional arrangements to shift legislature from rivalry to cooperation, from harmful practices to policy accountability and performance • What other ‘Post Its’?

7. Cross-cutting Issues

8. Context is important • Local requirements to adapt practices from elsewhere • Minimum conditions creation agencies • Classification • Need for own development plans • Need to keep it simple • Change management • Creating the right incentives • Communication • Stakeholder participation

9. Coordination • Complex structures affect all aspects of budget and public management • Institutions at the centre • Different levels of government • Different type of government units (public entities) • International • Country to country • Multilateral organisations • Specifics don’t matter, but • Frameworks do • Processes do • Time tables • Availability of information is key

10. Prospective • Thoughts for Cabri work programme • Comprehensive country reform self-studies within broader development trends, issues and paradigms for future seminars • ‘Political interface to public finance management’ as theme for future seminar / Cabri cross-country study • Development of questionnaire and database • More responses to current questionnaire • Further development (alignment to international frameworks, more sections, what sequence) • Country study visits • Development of codes and standards • Seminar themes: which to take forward?