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From Program to Performance Budgeting; The Challenge for Emerging Market Economies
TL;DR: In this paper, the authors review the evolution of the "new" performance budgeting model, increasingly being applied in industrial countries and identify its main components, the tasks faced by emerging market economies when converting their present budget systems to this model are determined.
Abstract: Many emerging market economies are trying to improve their budget processes and move to performance-based budgeting. This paper first reviews the evolution of the "new" performance budgeting model, increasingly being applied in industrial countries. By identifying its main components, the tasks faced by emerging market economies when converting their present budget systems to this model are determined. It is recognized that this conversion will not be easy and will require four major reform elements. First, any existing program structure must be set in the wider context of strategic budget planning and medium-term budget frameworks. Second, this typically involves redesigning and refining existing program structures. Third, existing budget-costing systems and associated skills will probably need to be improved. Fourth, and perhaps most difficult, a new system of accountability and budget incentives needs to be introduced. For emerging market economies, these should be viewed as the prerequisites for a successful introduction of the new performance-budgeting model.
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TL;DR: In this article, the authors outline the process of implementing a government-wide monitoring and evaluation (GWM&E) system in South Africa, which is currently very much a "work in progress".
Abstract: Monitoring and evaluation (M&E) is an extremely complex, multidisciplinary and skill intensive endeavor. Government-wide M&E is even more so because it requires detailed knowledge across and within sectors, as well as of interactions among planning, budgeting, and implementation functions in the public sector. The situation is complicated even further when the machinery of government is decentralized, with powers and functions distributed across three spheres of government. This paper outlines the process of implementing a government-wide monitoring and evaluation (GWM&E) system in South Africa. The first section sketches the context that created the impetus for establishing such a system. This context is clearly shaping the evolution of the system and influencing its longer-term sustainability. The second section outlines the various stages of conceptualizing and implementing the GWM&E system, which is currently very much a 'work in progress.' The third section reviews international experiences for lessons learned, which may also be germane to the South African context, noting similarities and differences in approach. Some of the critical implementation factors relate to the role of political leadership and championing of M&E, incentives for promoting usage of M&E findings, dealing with information and data constraints, capacity building, "ownership" of the M&E system by line ministries and other agencies, and managing the challenges of change. The fourth section examines a range of challenges and difficulties encountered in South Africa. The final section reflects on lessons distilled from the South African experience to date.
73 citations
Dissertation•
22 May 2013
TL;DR: In this paper, the authors developed a conceptual approach or framework for public financial performance management, which will pave the way for operational and line managers in public financial management towards world-class performance with specific reference to effectiveness and service delivery outcomes.
Abstract: The South African Government’s service delivery initiatives do not guarantee quality of life for all citizens of South Africa. An active challenge faced by researchers and practitioners, who do not have adequate solutions available, is based on the fact that government departments are not able to say what they have achieved; only what they have done. The aim of this study was to develop a conceptual approach or framework for public financial performance management, which will pave the way for operational and line managers in public financial management towards world-class performance with specific reference to effectiveness and service delivery outcomes. The contextualisation of public administration highlights the scientific foundations of public administration and the continuous development of administrative theories and growing administrative thought within the discipline of Public Administration. The development of public administration proves to be dynamic with the emphasis on future trends and emerging concepts of public management and good governance and the need for more efficient and effective service delivery. The state's role has changed from hands-on management and direct delivery of goods and services to the facilitation of an enabling environment, which provides a framework for private sector participation. Successful development programmes hinge on the effective economic policies, good governance and financial performance management of the facilitator. Due to the fragmentation of policy responsibility in society, the traditional mechanisms of governmental control are no longer workable, or even appropriate. Control is giving way to interaction and involvement with critical implications for the operational manager’s ability to manage, but still to be accountable. The future role of government will be based on governance and stewardship, which can create an enabling environment for all its citizens to enjoy a good life. Derived from an analysis of the public administration environment, the magnitude of the challenges and the tasks facing African countries, African governments and other stakeholders, especially the international community, must establish capacity to deal with a dynamic and changing environment. A systematic and holistic approach will be needed for the implementation of policy in order to become more effective and responsive to the needs of society. The role of governance as the ideal platform allows for an interactive relationship between the public financial management system and the budget process to be facilitated by various role players in different relationships. Interaction is based on the concept of getting the basics right and is also aligned with the public financial management system as a series of realistic platforms to accommodate the multiple role players. The result is a financial system that provides the opportunity for financial performance management and effective and optimal budget outcomes. A high-performing public-sector organisation is results-driven with a sound public financial management system, which allows the government to make the best use of all available resources. This type of organisation will meet the quest to efficiently and effectively utilise public resources to meet the needs of the community in an equitable manner. Public financial performance management must be viewed as the next logical evolution of the field of public management. Public financial performance management must be viewed as an essential component of successful management. This is cultural, operational and human resource management change. The transition will require recognition that rationality is the underlying force of performance management. The development of public financial performance management capacity is a means and not an end in itself; it is an integral part of the overall development agenda. Consequently, a capacity development strategy must be based on a broader vision of improved financial performance management and increasing organisational effectiveness leading to good governance. While country ownership is critical, the capacity development efforts have to be tailored to match the existing human resources, institutions, legal system, as well as the administrative and political culture. The drive for capacity development should transcend the mode by which it is to be delivered. Description: Thesis (PhD)--University of Pretoria, 2013. Files in this item Search UPSpace
12 citations
TL;DR: In this paper, it is argued that to develop a comprehensive performance measurement system requires resolving a number of issues involved in clearly defining how to measure performance as well as overcoming technical issues in the design and use of that performance.
Abstract: Based on the experience of budget management reforms that have been introduced over the last two decades in a large number of member countries of the Organization for Economic Cooperation and Development (OECD) it is not uncommon to find emerging market economies moving toward performance-based budgeting where measures of performance play a key role. While it might be tempting for middle income countries to press forward to adopt a full-blown outputs and outcomes framework, there are some risks in the move. Such a change in orientation is only possible once managers have had adequate experience in refining the definition of programs and their objectives, and on this basis developing a comprehensive system of performance measurement. It is argued in this paper that to develop a comprehensive performance measurement system requires resolving a number of issues involved in clearly defining how to measure performance as well as overcoming a number of technical issues in the design and use of measures of that performance. However, perhaps the most critical step is introducing a system whereby performance information can influence resource allocation decisions, i.e., establishing a performance management system. Based on international experience, this paper reviews each of these hurdles in moving toward a performance management framework.
7 citations
01 Jan 2010
TL;DR: In this article, the role of a small but influential epistemic community in enabling global accounting change for public sector entities is explored, during a period in which government administrations globally were criticized on a number of fronts, creating a perceived need for a more business-like public sector underpinned by better accounting.
Abstract: This paper explores the role of a small but influential epistemic community in enabling global accounting change for public sector entities. We show how, during a period in which government administrations globally were criticized on a number of fronts, this community problematized public sector accounting and management practices, creating a perceived need for a more ‘business-like’ public sector underpinned by ‘better accounting’. We also show how the community was also able to diffuse these ideas globally. In doing so, our study sheds light on how epistemic communities can shape the regulatory agenda by identifying and articulating the nature of the “problem” and by engineering and diffusing the appropriate solution.
6 citations
Posted Content•
TL;DR: A vision panoramica de las reformas presupuestarias en ocho paises de la region: Argentina, Brazil, Colombia, Costa Rica, Ecuador, Mexico, Peru and Uruguay is presented in this article.
Abstract: El proposito de esta publicacion es otorgar al lector una vision panoramica de las reformas presupuestarias en ocho paises de la region: Argentina, Brasil, Colombia, Costa Rica, Ecuador, Mexico, Peru y Uruguay. Aunque la velocidad de los cambios excede con mucho el ritmo de produccion editorial, cre eemos que estos estudios contienen material muy rico para comprender mejor los procesos de gobernabilidad financiera de los paises de la region.
6 citations