Working with Governments: The Tools and Role of Budget Observatories…in Kenya

1. Isa Achoba, Chief, Strategic Planning Monitoring and Evaluation, UNICEF Kenya iachoba@unicef.org and Godfrey Ndenge, Social Policy Advisor, Ministry of Finance, Kenya gndenge@treasury.go.ke Working with Governments: The Tools and Role of Budget Observatories…in Kenya

2. Content of Presentation • Background to Social Budgeting in Kenya. • History • Context • Progress to date. • Tools for enhancing Social Budgeting • Social Intelligence Reporting • Observatories in Social Budgeting. • Lessons to share and recommendations

3. The background to Social Budgeting/1 For many years in Kenya - budgeting was more preoccupied with Macroeconomic issues: • Generating higher growth (GDP), controlling inflation, exchange/foreign reserves, debt etc • Limited emphasis was given to human development (poverty, health and education) The need for a balance became imperative: to ensure that both macroeconomic targets and human development targets are coherently achieved

4. The background to Social Budgeting/2 Initial ideas- Trickle down theory failed • The Government of Kenya-UNICEF programme in 2005, conceptualized the social budgeting initiative; • It is being spearheaded by the Ministry of State for Planning, National Development and Vision 2030;In collaboration with: • Ministry of Finance; • SIDA (during the pilot phase) • The programme set up social budgeting observatories at the national level and initially in 3 districts (Isiolo, Kwale and Turkana); These observatories; • Produced budgeting reports and; • Carried out an assessment of institutional and policy challenges facing programmes.

5. Dual Budgeting Framework Harmonization Process and Negotiations Human Development & rights framework Macroeconomic framework • Growth rate, inflation, fiscal deficit, public debt, taxation • Resource envelope Quantitative targets to reduce child deprivation, namely in health, nutrition, housing, information, water, education, sanitation and protection. Budget Mandated expenditures Infrastructure Security HD/HR provisions

6. The Concept of Social Budgeting social sectors focusing on children and women Social Policies for Human Development Children and vulnerable populations participatory approach to budget preparation and monitoring Women and marginalized populations Budgetary decisions, allocations and utilization

7. The Concept of Social Budgeting Priorities amidst competing needs – best identified by the people social sectors focusing on children and women Development activities are inter-twined – Human rights are holistic Broader Participation ensures ‘equity', 'efficiency’ and ‘accountability’ in social outcomes Social Policies for Human Development Children and vulnerable populations participatory approach to budget preparation and monitoring Policy and institutional hurdles - most visible nearer the ground Women and marginalized populations Ownership and sustainability of development Budgetary decisions, allocations and utilization

8. Top Down vs Bottom up Balance The Concept of Social Budgeting Priorities amidst competing needs – best identified by the people social sectors focusing on children and women Development activities are inter-twined – Human rights are holistic Broader Participation ensures ‘equity', 'efficiency’ and ‘accountability’ in social outcomes Social Policies for Human Development Children and vulnerable populations participatory approach to budget preparation and monitoring Policy and institutional hurdles - most visible nearer the ground Women and marginalized populations Ownership and sustainability of development Budgetary decisions, allocations and utilization Transparent Decision ► Children ► Women ► Media ► Civil Society Addresses policy Barriers Evidence for Policy Adjustment Human Rights Resources means more than funds

9. Traditional Budgeting – Institutional Structures Traditional structures Ministry of Planning National Development and Vision 2030: Ministry of Finance: Fiscal and monetary division Budget office Sector Ministries And Parastatals Civil Society organizations Civil Society organizations District/County sector agencies

10. Social Budgeting – Institutional Structures Traditional structures Social Budgeting Structures Ministry of Planning National Development and Vision 2030: Ministry of Finance: Fiscal and monetary division Social Policy advisor Budget office National Budgeting observatories Sector Ministries And Parastatals Civil Society organizations Civil Society organizations Sector Budget Observatories District/County sector agencies District/County Budgeting observatories

11. Social Budgeting Gains…. • Social Policy Advisor embedded in the Treasury • Evidence-led influence on Budget for Children; • Convening hub for dialogue with sectors; • Coordination of social policy brief into budgetary decisions; • Monitoring of budget flows and utilization • Social Budgeting Guidelines • Social Intelligence Reporting; • Observatories in Social Budgeting.

12. Progress and Opportunities

13. Are Budgets working for children and women? Increasing Social Sector Development Budgets Social Policy Briefs & Advocacy Are Budgets working for Children And Women at facilities And service outlets? No ‘real time ‘assurances’ of participation and ‘efficiency’

14. Social Inteliegence Reporting (SIR) in the context of human rights and development • An accountability tool prescribed in the Government of Kenya Social Budgeting (SB) Guidelines to: • Engage ‘Claim Holders’ in budget and social policy; • Gauge the performance of key social policies for the realization of the rights of children and women in an environment of ‘equity’ , ‘participation’, ‘transparency’ and public ‘accountability’. • As originally coined by E.L. Thorndike (1920), the term Social Intelligence referred the person's ability to understand and manage other people, and to engage in adaptive social interactions • According to Cantor and Kihlstrom (1987), social intelligence is specifically geared to solving the problems of social life

15. Social Inteliegence Reporting (SIR) in the context of human rights and development • Social Intelligence Report summarizes and analyses data, information and evidence collected from; • Social networks, • Service points; • Community interactions, and; • Using the knowledge to inform management/actors and for more efficient and effective strategies and policies ….in the social sector

16. Why Social Intelligence Reporting (SIR)? The Social Budgeting Guidelines prescribe SIRs as basis for convening Social Budgeting Observatories at – local, sector and national levels Citizen participation in realizing better social, political and economic outcomes, as contained in Kenya’s Vision 2030 and the first Medium Term Plan Social budgeting intelligence reports are vital in tracking how budgets are working for children and women at facility/community and devolved levels as well as stimulate actions and accountability by ‘duty bearers’

17. Eye on the Budget… UNICEF Kenya invests less than 100mUS$ per annum vs Government Budget of 11 billion US$ Keeping ‘Eyes, Ears and Nose’ on the budget is key to realization of the rights of the most deprived Engagement and Awareness of Budget benefits (or failures) for/by ‘Claim Holders’ engenders actions and accountability by ‘duty bearers’

18. Are Budgets working for children and women? Increasing Social Sector Development Budgets Social Policy Briefs Are Budgets working for Children And Women at facilities And service outlets? SIRs generated, tabled and utilized by SB Observatories...’ accountability tool’ for social equity

19. How is SIR Generated and Used? Periodic (twice a year) SIRs generated in at least 10 communities per district Better Social Services Policies Better Development Results Obstacles to efficient and equitable social services identified and removed at facility, community and higher levels District and/or County SB Observatories Contribute to and Converge to discuss findings from SIRs

20. SIRs in Practice… @ local levels Participation in mutual Accountability District and/or County Development (Executive) Committee As Local Observatory District or County Development Office as Secretariat for SIR Social Intelligence Reporting… a) Budget b) Policies Are Budgets Working for Children and Women? What ? Who? Why? Where? When? Follow up on SIR key findings and recommendations Hold sector offices and officials accountable Education sector funds and Services Health and Nutrition services and funds Social Protection Services and funds Water, Sanitation and Hygiene services and funds Devolved Funds – at least 10 of such funds exist today

21. The Kenya Social Intelligence Reporting Tool and template

22. The Kenya Social Intelligence Reporting Tool and template

23. The Kenya Social Intelligence Reporting Tool and template

24. Field Notes from Social Intelligence Reporting trials…. • The SIRs field diagnostics have so far shown that … • Vast ‘real time evidence can stimulate action… • In a district, 21 children are reported pregnant in a primary school alone this year; • Anti Malaria drugs are lacking , sometimes for months; • No toilet for ECD pupils in primary schools; • A former Head teacher & past PTA Chairman in a School could not account for Ksh 130, 000 (from CDF +MVC fund);… • CT-OVC is keeping children in schools;… • Obstacles on the path of budget removed… • e.g. the use Constituency Development Funds for spring water development; • In a Primary school, 750 pupils were on roll call, but only half was captured in the Education sector database…

25. Community Claim Holder Participation in mutual Accountability District or County Fulfilling obligations ; Learning for policy feedback Sector & National Gauging impact of budgets and policies for children and women Social Intelligence Reporting and Human Rights Entrenching the culture of accountability and productive engagement Taking the lead in ‘devolved governance’ Social Intelligence Reporting Social Intelligence Reporting Social Intelligence Reporting Social Intelligence Reporting Access to ‘real time’ information Fast track to social equity

26. Role of Social Budgeting Observatories • Social Budget Observatories are useful if ‘facts and figures’ on the ‘budget at work’ is available; • The Social Intelligence Reports (SIR) ….’eye, ear and nose’ on budget working for children and women; • The social Budgeting observatories meet to; • Deliberate on the ‘real time’ findings from SIRs; • Take and/or ensure that remedial actions do address challenges are dealt with; • Hold duty bearers accountable; • Foster citizen participation; • Contribute to policy performance review, and; • Gather evidence for the next budget cycle.

27. What ‘s Next …in social budgeting in Kenya • Revise the Social Budgeting Guidelines – for use at county levels and with the additional devolution of political, administrative and fiscal powers and accountability in the new constitution; • At least 23 districts (1 per county) assessed and trained to apply SIR as tool for Social Budgeting; By March 2011; • At least 23 SIRs generated/analyzed; • Utilized for policy advocacy and; • To address real time challenges. • Real time evidence available on the benefit of Government of Kenya investments in social sectors of health, WASH, Education, protection etc • By 2011, each of the 47 counties assisted to have at least one Social Budgeting learning centre that applies the SIR routinely as part of their ‘SB’ practice of accountability.

28. Lessons and Recommendations…1 • Work towards sustained national capacity and integration of Social Budgeting into national policy, planning, budgeting and public accountability framework; • Assist Government to develop and disseminate a national Social Budgeting Guideline; it empowers the citizens and CSO to demand engagement with the budgeting process; • Support national and local capacity for implementing the budgeting guidelines; especially use of Social Intelligence Reporting; • Sector-specific Budgeting Observatories are vital to ownership and accountability for effective and efficient use and reporting (accountability) of the increased resources gained through social budgeting;

29. Lessons and Recommendations…2 • Gather evidence for increasing treasury allocations to pro-child and women friendly policies but also assemble facts on how budgets are working for children and women; • Consider the adoption and use of Social Intelligence Reporting; • Support Government to publish simplified ‘public versions’ of the budget; • Facilitate CSO, public dialogue and engagement with (a) and (b); • Donors and development partners to increase resources (funding, technical, knowledge sharing via south-south cooperation etc) to social budgeting

30. ASANTE SANA!!! THANK YOU