2011 05-17 government financial transparency in timor-leste
DESCRIPTION
This presentation describes how the Government of the Republic of Timor-Leste employs the FreeBalance Transparency Portal and other mechanisms to create public financial management transparency to assist civil society, build infrastructure, set education goals, involve citizens, and improve government performance. The presentation describes how transparency was sequenced with other government reform.TRANSCRIPT
Strengthening Public Financial Management through Transparency in Timor‐Leste
International Consortium on Governmental Financial Management
May 17, 2011
Confusion?
Strengthening Public Financial Management in Timor‐Leste
2
Strengthening Public Financial Management in Timor‐Leste
Congress cuts transparency funding
How can Timor‐Leste afford government transparency?
Strengthening Public Financial Management in Timor‐Leste
4
Timor‐Leste United States Comparison
Independence 2002 1776 3.4%
GDP Per Capita $2,600 $47,400 5.5%
GDP Growth 8% 2.7% 338%
Unemployment 20% 9.7% 206%
Below poverty line 42% 12% 350%
Life Expectancy 67.95 78.92 86%
Literacy 58.6% 99% 59%
globalization
Strengthening Public Financial Management in Timor‐Leste
= competition
Strengthening Public Financial Management in Timor‐Leste
choice
Strengthening Public Financial Management in Timor‐Leste
citizens are watchingStrengthening Public Financial Management in Timor‐Leste
empowered
Strengthening Public Financial Management in Timor‐Leste
Democratic Republic of Timor‐Leste
(RDTL)Transparency Objectives
Strengthening Public Financial Management in Timor‐Leste
10
Strengthening Public Financial Management in Timor‐Leste
build civil society
Strengthening Public Financial Management in Timor‐Leste
build infrastructure
Strengthening Public Financial Management in Timor‐Leste
build capacity
Strengthening Public Financial Management in Timor‐Leste
build citizen involvement in government
Strengthening Public Financial Management in Timor‐Leste
improve government performance
Strengthening Public Financial Management in Timor‐Leste
Strengthening Public Financial Management in Timor‐Leste
GDP Per Capita (PPP, logs)
UG
AN
DA
PA
PU
A N
EW
GU
INE
A
AU
STR
ALIA
-3
-2
-1
0
1
2
3
209 Countries
Nor
mal
ized
Gov
ernm
ent E
ffect
iven
ess
Inde
xHIGH
LOW
Benefits of Transparency Government Effectiveness and GDP*
* At purchasing power parity
Source: The World Bank
Higher the government effectiveness = higher the country GDP Per Capita
Strengthening Public Financial Management in Timor‐Leste
GDP Per Capita (PPP, logs)
UG
AN
DA
PA
PU
A N
EW
GU
INE
A AU
ST
RA
LIA
-3
-2
-1
0
1
2
3
207 Countries
Nor
mal
ized
Voi
ce a
nd A
ccou
ntab
ility
Inde
x
.
HIGH
LOW
Benefits of Transparency Voice and Accountability and GDP*
* At purchasing power parity
Source: The World Bank
Higher the government accountability = higher the country GDP Per Capita
Strengthening Public Financial Management in Timor‐Leste
GDP Per Capita (PPP, logs)
UG
AN
DA
PAP
UA
NE
W G
UIN
EA
AU
STR
ALIA
-3
-2
-1
0
1
2
3
204 Countries
Nor
mal
ized
Con
trol
of C
orru
ptio
n In
dex
HIGH
LOW
Benefits of TransparencyControl of Corruption and GDP*
* At purchasing power parity
Source: The World Bank
Higher the control of corruption = higher the country GDP Per Capita
Strengthening Public Financial Management in Timor‐Leste
= stability
Strengthening Public Financial Management in Timor‐Leste
= investor confidenceStrengthening Public Financial Management in Timor‐Leste
avoid theresource curse
Strengthening Public Financial Management in Timor‐Leste
technology leapfrog
Strengthening Public Financial Management in Timor‐Leste
use what works
Strengthening Public Financial Management in Timor‐Leste
skip what doesn’t work
Strengthening Public Financial Management in Timor‐Leste
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skip stages
Strengthening Public Financial Management in Timor‐Leste
modernize
Strengthening Public Financial Management in Timor‐Leste
rapidly
Strengthening Public Financial Management in Timor‐Leste
review
Transparency and Accountability
The next generation of public financial management technology will allow the public to track the budget live, to see where every dollar is being spent, and to gain renewed confidence in
the process
Democratic Republic of Timor‐Leste Vision
Strengthening Public Financial Management in Timor‐Leste
sequenced
Strengthening Public Financial Management in Timor‐Leste
Strengthening Public Financial Management in Timor‐Leste
Public Financial Management –Foundation for Country Growth
FMIS(software and hardware)
Human Resource
Development
Capacity Building(Training)
GoTL LAWS
Procurement Commission
Autonomous Agencies
Ministries
Decentralization
Public Financial Management
Strengthening Public Financial Management in Timor‐Leste
1. International StandardsStrengthening Public Financial Management in Timor‐Leste
IPSASInternational Public Sector Accounting
Standards
Strengthening Public Financial Management in Timor‐Leste
EITIExtractive Industries
Transparency Initiative
Strengthening Public Financial Management in Timor‐Leste
GFSGovernment Financial Statistics
Strengthening Public Financial Management in Timor‐Leste
MTEFMedium Term
Expenditure Frameworks
Strengthening Public Financial Management in Timor‐Leste
IATIInternational Aid
Transparency Initiative
Strengthening Public Financial Management in Timor‐Leste
2. Manager’s Dashboard
Strengthening Public Financial Management in Timor‐Leste
review
Strengthening Public Financial Management in Timor‐Leste 40
integration with macro‐economic
data
examines budget execution data
integrated with back‐office procurement & commitment accounting within IFMIS
3. Document Management
Strengthening Public Financial Management in Timor‐Leste
manages correspondence with senior managers
repository for freedom of information
4. e‐Procurement Portal
Strengthening Public Financial Management in Timor‐Leste
review
Strengthening Public Financial Management in Timor‐Leste 44
integrated with back‐office procurement & commitment accounting within IFMIS
vendor alerts
tender results published
government tenders published
5. Transparency Portal
Strengthening Public Financial Management in Timor‐Leste
review
Strengthening Public Financial Management in Timor‐Leste 46
www.transparency.gov.tl
subscribe
drill down
articles
Expenditures, Transparency Portal
10 years of data
drill through the chart of accounts
Expenditures, Transparency Portal
export to xls, doc, pdf, html, xml
track commitments
Lessons Learned
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1. Leadership
Strengthening Public Financial Management in Timor‐Leste
Goodbye Conflict, Welcome Development
Timor‐Leste will be the country that goes down in history as the nation to put a stop to falling victim to large
companies and the resource curse
Prime Minister Xanana Gusmão
Strengthening Public Financial Management in Timor‐Leste
2. Learn from the mistakes of othersStrengthening Public Financial Management in Timor‐Leste
Goodbye Conflict, Welcome Development
When we in the developing world face these types of crisis, which we do on a more regular basis than our colleagues in
more economically advanced nations — then we are repeatedly told to increase our openness to the global
economy, to trust in the market but to regulate them well. To be honest this approach has worked
Minister of Finance Emilia Pires
Strengthening Public Financial Management in Timor‐Leste
3. Transparency
is not an Option
Strengthening Public Financial Management in Timor‐Leste
Strengthening Public Financial Management in Timor‐Leste
YouTubeFacebookTwitterSMS
citizen auditors
4. Transparency = Performance > Embarrassment
Strengthening Public Financial Management in Timor‐Leste
Strengthening Public Financial Management in Timor‐Leste
Role of Civil Society
• NGO’s can help organise literacy groups and provide
materials. They can provide private education and
education for the blind. They can provide school
materials for students, and assist with school equipment
chairs and books
• NGO’s can help us organise and run technical training
courses in our villages
Timor‐Leste National Vision
Strengthening Public Financial Management in Timor‐Leste
5. Sequenced Holistic Multiple‐Year PFM Strategy
Strengthening Public Financial Management in Timor‐Leste
Improve budget execution
Improve government capacity
Improve transparency & accountability
Improve government performance
review
Strengthening Public Financial Management in Timor‐Leste
Public Financial Management –Foundation for Country Growth
6. Build Capacity
Strengthening Public Financial Management in Timor‐Leste
review
• Training beyond software– IT capacity
– Project management
– Government accounting
• Beyond training– Adaptable help
– E‐Learning
– Knowledge management
• Intuitive systems– Translation including terminology
– Simple & goal‐oriented interfaces
• Mentoring
Strengthening Public Financial Management in Timor‐Leste
PFM ModernizationAlignment with Capacity Building
7. Require Sustainability in Partner Performance
Strengthening Public Financial Management in Timor‐Leste
8. Adopt International Standards
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9. Leverage Open Systems
Strengthening Public Financial Management in Timor‐Leste
Transition to Open Environment: Transparency
Domain Closed Transition Open
Transparency Access to Information Document Machine Readable
Data Availability Data for Sale Publish as ExceptionDo not Publish as
Exception
ModePublish, Audited &
VettedMixed
Near Real‐Time Publishing
ROI Reason Revenue GenerationWhat are they going to do
with the data?Government as
Platform
Target Business Community Civil Society & PressCitizens
Transition to Open Systems: Technology
Domain Closed Transition Open
IntegrationProprietary within
SuiteSupport for Industry
StandardsService Oriented Architecture
MiddlewareProprietary = Customer Lock
Proprietary/Open Tactical approach
Open Standards = Customer Choice
ViewpointOpen Systems reduce system performance
Open Systems extend value
Open Systems = Extensibility
Extensibility High CostsNeed for vendor
EcosystemLow Cost Application
Assembly
10. Leapfrog is possible
Strengthening Public Financial Management in Timor‐Leste
Timor‐Leste United States Comparison
1. StandardsGFS, IPSAS, EITI, IATI,
MTEF? Leaped
2. Performance Management
Manager’s DashboardsVarious tools across
governmentTo leap
3. Document Management
Manager Document Management
Various Records & Correspondence
Catching Up
4. e‐Procurement August 15 FedBizOpps To leap
5. Transparency Transparency PortalData.gov & others ‐
underfundingLeaping
www.revenuewatch.org
Strengthening Public Financial Management in Timor‐Leste
How?
Strengthening Public Financial Management in Timor‐Leste
Timor‐Leste United States
Strategic Vision Holistic1 Year Budgets, complex
election cycles
Government Structure Unitary Federal
Civil Society & Media Seen as Improving Results Seen as “Special Interests”
Government Intervention Seen as Good Seen Suspiciously
1. StandardsEase to Move to International
StandardsLong History of Entrenched
National Standards
2. Performance Management
Single system data source Multiple entrenched systems3. Document Management
4. e‐Procurement
5. Transparency
Links
• Open Systems Enable Government Transparency Leapfrog http://www.freebalance.com/blog/?p=1559
• E‐Government Transparency in Developing Countries http://www.cutter.com/offers/egovt.html
• Developing Countries can Leapfrog Developed Countries in Government Transparency http://tech.state.gov/profiles/blogs/how‐developing‐countries‐are
• More: [email protected] Public Financial Management in Timor‐Leste
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Goodbye Conflict, Welcome Development
Strengthening Public Financial Management in Timor‐Leste