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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. Old Paradigm “Conventional Budgeting” Budget Process Rules Inputs Compliance Centralised Control Bureaucratic opaqueness.

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The Politics of Public Expenditure Management Reform

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  1. The Politics of Public Expenditure Management Reform Politics of PEM Reform Tim Williamson t.williamson@odi.org.uk Centre for Aid & Public Expenditure

  2. 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

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

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