Performance Budgeting in Argentina: First Steps

1. Performance Budgeting in Argentina:First Steps Bill Dorotinsky November 2000

2. Elements • Two separate projects • Performance Agreements • formerly lead in Economy, now Jefetura de Gabinete • focus on changing agency management • ‘Program Evaluation’ • lead by MECON • focus on gathering output data

3. Performance Agreements • 3-levels of Agreements • Minimum Standards • develop mission statement, • identify major objectives, • align current activities with objectives, • align budget with activities, • develop indicators for activities, • set performance targets for activities, • develop work plan for implementing • Organizational Self-evaluation • minimum standards plus benchmark performance levels per activity • Organizational Reinvention • Organizational self-evaluation standards plus reorganization

4. Experience • Started in late 1998 • Piloted in 5 small agencies • Will sign first agreement next month • Changes in organization of project, leadership slowed developments • Unclear ‘incentives’ • New law requires agreements for all agencies

5. “Program Evaluation” • Gathering performance information • “Combining” financial and physical performance • publishing quarterly reports of activities and budget execution • working on basic proportional measures • output per staff • cost per output

6. Problems encountered in both projects • In implementation • Data integrity • Incentives for agency participation • Limited line Ministry staff capacity and resources • ADP • Staff - available and skilled • Over-all • Leadership and support • Ultimate use of data for decisions

7. Strengths and Weaknesses • Strengths • gradualist approach (start small, pilot test) • work with line ministries to change management, business processes • at least in pilot stage, one-on-one attention to each agency • recognizing capacity limitations • Weaknesses • sponsorship: engine of reform • use of information, results