Participatory Budgeting:
Concepts and Practices
Participatory Budgeting Pilot
World Bank Workshop
Tirana May 12, 2004
Content
What is Participatory Budgeting (PB)?
Why LGs promote PB?
How to implement PB?
PB best practices
Lessons learnt
References
What is Participatory Budgeting?
It is a process of prioritization and co-joint decision
making through which citizens and local
government decide together the final allocation of
public investment
Include citizens in the formulation of annual budget
It is a complement of formal representation structures
PB rules prioritize the poorest
It is based on territorial and thematic divisions
It is the cutting edge of participation in LG
Why LGs promote PB?
To increase effectiveness and efficiency of budgeting and service
delivery
 making budgeting formulation and implementation more transparent and
accountable to citizens
 Matching technical capacity of LG in budget formulation with citizens
needs
To increase equity
 Creating an simple mechanism of involving the poor and traditionally
excluded in accessing public resources and decision making
To ensure sustainability
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Increase LG government revenue capacity and investment quality
Strengthen civil society organization
Build a constructive dialogue between LG and civil society
Building active citizenship and accountable institutions
How to implement PB?
1- LOCAL
MEETINGS
3- APPROVAL
IMPLEMENTATION
2- PB COMMITTEE
ACTIVITIES
How to implement PB?
1 - LOCAL MEETINGS (2 months)
Awareness campaign/preparatory community
meetings
Information about financial situation and forecast
 Information about public works in progress
 Discussion of PB rules
Identification of local priorities
 Discussion of local and thematic priorities
 Selection of local and thematic priorities
Election of PB local delegates
 Each local areas elects their representatives to the PB
Committee
How to implement PB?
2 - PB COMMITTEE ACTIVITIES (2 months)
Establishment of PB Committee
 50% civil society + 50% LG delegates (usually)
Discuss of all local and thematic priorities
 Official opening of the PB Committee
 Presentation of all priorities
 Capacity building activities
Understanding the overall situation
 Visit of all priorities
 Deepening discussion of municipal revenue and capital
investment
 Monitor current investments
How to implement PB?
PB COMMITTEE ACTIVITIES (May-June)
Technical and financial analysis by LG\
 Analyses to fit proposal according to technical criteria
 Several institutions and departments provide technical information
 Reconciliation of demands with budget
Prioritization
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

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Analysis of priorities based on prioritization matrix
Discussions with Municipal Council members
Consensus building
Allocation of resources based on prioritization matrix
Budget detailing
How to implement PB?
APPROVAL & IMPLEMENTATION (July-)
Approval of the Budget Proposal by the PB Committee
 Usually by consensus
 If necessary by voting
Formal Approval of the Budget by the Council
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Submission of PB budget to Mayor
PB Committee send the budge proposal for approval
Strong participation of citizens
Municipal Council hold the final decision
Budget Implementation and Follow-up
 Delegates and citizens monitor the budget implementation
 Discussion of necessary changes in the rules of PB
 Start of a new year of the PB
Best Practices
15 countries have some kind of PB
 Brazil, Bolivia, Nicaragua, Peru, Mexico
 Check Republic, Scandinavian countries
 US, Canada
In 2003 there were more than 250 municipalities with PB in Brazil
59% of municipalities over 100.000 inhabitants have
implemented PB
All political parties despite ideological positions have
implemented
Some State governments have started to implemented the
methodology
The Federal Government adopted PB methodology in the
formulation of the last Multi-Year National Investment Plan (PPA)
Best Practices: Porto Alegre
The first and most well-know experience in
participatory budgeting
Started in 1989
1.3 million inhabitants
Capital of the Rio Grande do Sul State
Best Practices: Porto Alegre
GOAL
The objective is to ensure a
progressive and transparent
public expenditure ensuring that
regions with great needs
received receive a greater
budget
PRIORITIZATION CRITERIA
Population weight = 2
Lack of service weight = 4
Thematic priorities weight = 5
ACHIEVEMENTS 1989-1996
number of households with access
to water services rose from 80% to
98%
number of children enrolled in
public schools doubled
30 kilometers of roads were paved
annually in poorer neighborhoods
revenue increased nearly by 50%.
Best Practices: Belo Horizonte
Capital of the Minas Gerais State
PB started in 1993
OP held every 2 years
Area-based planning rather than project-based
Through integrating with the Master Plan and Land
Regularization and Urbanisation programs
Resources are distributed by territorial units (81 UPs)
Resources alloacted based on population size and map
of quality of life indicator (IQVU) giving priority to areas
of poverty concentration
Best Practices: Belo Horizonte
*
Norte
Venda
Nova
Nordeste
Pampulha
Leste
Noroeste
Oeste
Centro-sul
Barreiro
81 UPs
Highest IQVU
Lowest IQVU
26 Special Ups = 10% budget
Priority areas = 56% budget
Best Practices: Belo Horizonte
PRIORITY AREAS INVESTMENT APPROVED FOR 2003/2004
PRIORITY AREAS
N UM B E R O F
IN V E S T M E N T S
BARREIRO
CENTRO-SUL
LESTE
NORDESTE
NOROESTE
NORTE
OESTE
PAMPULHA
VENDA NOVA
10
9
6
5
5
11
5
4
9
14
15
11
11
12
12
14
10
15
71%
60%
55%
45%
42%
92%
36%
40%
60%
TOTAL
64
114
56%
R E G IO N S
%
Best Practices: Belo Horizonte
Infrastructure
Slum upgrading
Education
Health
Social
Sport
Housing
Culture
Green areas
439
45,30%
254
26,21%
97
10,01%
92
9,50%
30
3,10%
26
2,68%
16
1,65%
12
1,24%
3
0,31%
969 100,00%
NORTE
VENDA NOVA
PAMPULHA
NORDESTE
NOROESTE
LESTE
CENTRO-SUL
OESTE
BARREIRO
Best Practices: Santo André
One of the 39 municipalities
of the Metropolitan Region of
São Paulo, located in the
Southeastern region of Brazil
(Greater ABC Region)
Industrial heartland of Brazil
and Latin’s America largest
industrial complex
 174.38 km2
 648.443 inhabitants
 39% in urban area and 61% in
watershed protected area
 139 slums (18,5% of
population)
Best Practices: Santo André
Started during the 1989-1992, but was interrupted and restarted in 1997
The municipality is divided in 19 geographic regions and 9
thematic issues
 Education
 Health
 Cultural Identity
 Social Inclusion and Housing
 Environmental Quality
 Economical Development
 Urban Development
 State Reform
 Urban Violence
Best Practices: Santo André
In 2001 the PB was merged
with the Strategic Planning to
broaded target group in the
participatory processes:
community and private sector
together debating the city
Now participants from both
processes would build
alliances and consensus in
resource allocation
Investments in short-term
needs, such as water,
sewage, upgrading, pavement
have also to consider
investments in the long-term,
less visible and immediate
problems
Best Practices: Barra Mansa
“Children’s
Participatory
Budgeting
Citizenship does not
have size”
Best Practices: Barra Mansa
Population: 166.745
inhabitants
Children and adolescents
in the age group 0-19
years represent 35,2% of
the population
Best Practices: Barra Mansa
A dynamic process around the
definition of the use of a
percentage of the municipal
budget according to the
demands and needs established
by the children and youngsters
Children and youngsters with the
9-15 years old, both schoolgoing and non-school going
children are eligible to
participate
Best Practices: Barra Mansa
OBJECTIVES
To stimulate the participation
of the children and youth in
the issues related to the
development of the city
To promote and create
leadership towards
democratic participation
To value and incorporate the
contribution that young
citizens can give to the city
Best Practices: Barra Mansa
ACHIEVEMENTS
Around 6.000 children and youngsters have been involved in the years of
1999 and 2000
A percentage of the municipal budget is established to attend the
children’s priorities every year (around 75.000 USD)
 Approval by the municipal council to designate a percentage of the municipal
budget for this program (around 0,13% of the total)
The inclusion of the subject “ public budget” in the curriculum of the
municipal schools from 3°primary level
 120 volunteers called agents of the participatory budgeting
37% of the population in the age bracket participated in the process
Lessons Learnt
FROM LOCAL GOVERNMENT PERSPECTIVE
Commitment and leadership to involve citizens in decision making
 Need minimum level of autonomy in budget allocation
 Need to avoid reinforcing paternalism
Require good budget, tax and capital investment information system
 Need to strength municipal finance system
 Limited discussion on operational costs
Constructive dialogue and consensus building depends on good
facilitation,communication and conflict resolutions skills and techniques
 Technical staff not prepared to dialogue with citizens
 Need training of facilitation, communication and conflict
Need to avoid creating tension with formal elected representatives
 Important to involve from the beginning elected councilors
Lessons Learnt
FROM LOCAL GOVERNMENT PERSPECTIVE
PB methodology is needs to be flexible to adapt from its learning
process and context (ex. urban – rural)
 Set up good monitoring and evaluation practices
 Do not institutionalize things that will need changes later
PB does not imply substantial extra costs for LGs, but it requires
commitment and time from staff
 PB requires attitudes changes in technical staff to learn how to dialogue with
people
Increased financial capabilities, accountability and political support
 Budget implementation has become more efficient, effective and inclusive
 Revenue has raised due to better understanding of tax uses
Lessons Learnt
FROM CITIZENS’ PERSPECTIVE
Need to address the specific challenges for involving vulnerable groups
(attitudes, constraints for participation, formal knowledge)
 Need to overcome individual conflict of interests and political ambitions
 Civic groups better organized have greater opportunities to influence
At the beginning it is difficult to overcome mistrust in government
institutions and ensure strong participation
 Citizens wiliness to put time in the process
In the most successful cases PB is guided by formal mechanisms while
less successful ones are dominated by informality and limited direct
decision-making
Lessons Learnt
FROM CITIZENS’ PERSPECTIVE
Citizens trust in government has improved due to better understanding
of budget constraints, tax and investments
 People become more informed and engaged in public life at local, regional and
national levels
 Increased people understanding on territorial and sector issues
People learn to look to their needs within a broader perspective of all
citizens
 It become a learning experience as going to university
It has successfully opened political opportunities included traditionally
under-represented groups in decision-making
 Increased social capital and empowered the poor
Lessons Learnt
Participatory Budgeting as implementing
mechanism of good governance and
decentralization has shown unprecedented
political, social, economic and institutional
achievements
References
Abers, R. “Practicing Radical Democracy Lessons from Brazil”. Paper presented at the Workshop:
Insurgent Planning Practices – Perugia, Italy, June 21-27, 1998
Acioly, C.,Herzog, A., et al. “Participatory Budgeting in the Municipality of Santo Andre, Brazil: the
challenges of linking short-action and strategic planning”. SINPA paper, Institute for Housing and
Urban Development Studies, 2002.
Blanco, C. "Citizen Participation and Social Inclusion Procedures in Santo André, Brazil: Participatory
Budgeting and City of the Future Project“. Presentation at the World Bank Urban Research Forum
in December 2002
Cabannes, Yves. Belo Horizonte Orcamento Participativo. Powerpoint presentation
Costa, Emly. Barra Mansa: Orcamento Participativo Mirin. Powerpoint presentation
Reuben, W. Participatory Budgeting in Brazil and Implications for Local Government Projects.
Presentation given at the World Bank
World Bank. Porto Alegre an Interesting Example. WBI video developed based on the video “voices de
una ciudad: democracia participativa en Porto Alegre” produced by Marta Hanercker and Luis
Acevedo Falls