pia 2000 introduction to public affairs managing budgets and money
TRANSCRIPT
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PIA 2000 Introduction to Public Affairs
Managing Budgets and Money
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PIA 2000 Focus
Bureaucracies, Budgets and Decision-Making
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Decision-Making Models and Spending: An Overview
1. Rational- Comprehensive
2. Standard Operating Procedures (SOPs)
3. Bureaucratic Politics
4. Group Think
5. Satisficing/Incrementalism
6. Cybernetic Theories (chaos theory)
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SOPs
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Decision-Making and Budgets
Themes and Definitions
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How Purposeful?
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Themesa. Budget: Recurrent vs. Capital (Development) Budgets
b. Financial Management- Incrementalism and Satisficing vs. Zero Based Budgeting (Planning Systems)
c. Accounting- Cost and Benefit vs. profit and loss
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Zero Based Budgets
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Themesd. Auditing vs. Accountability-
Quantitative vs. Qualitative
e. Evaluating- Assessment vs. Judgement
f. Budgeting: Two themes- Reforming and Decision-making
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Decision-Making and Financial Management
A Review of Themes
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1. Savas- Privatization and Contracting Out- Commercialization and intra-governmental competition
2. Johnson- Economic Bureaucracy, Public Sector Management: A Japanese Model?
3. Harris- End of the Third World? End
of Development Budgets
Decision-Making and Financial Management (Review of Issues)
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The Asian Model Issue
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Decision-Making and Financial Management
4. Heady- Imbalance- Political vs. Bureaucratic Development in the role of financial management (The Corruption Problem)
5. Armstrong- Values, money and Development Management
6. Nelson- International Organizations, NGOs and Development (Contracts vs. Grants)
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The Nelson View
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Decision-Making and Financial Management
8. Turner and Hulme- Private Sector Development vs. Development Management: The role of public sector financial management (Oversight)
9. Peters and Barzelay-Public Sector Reform
10. Caiden and Wildavsky- Planning vs. Budgeting
11. Janis-Is Budgeting and financial management impacted by Group Think?
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Group Think?
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Planning, Financial and Budgetary Management Systems in Poor Counties
Five historical periods- From
a development perspective
Read Caiden and Wildavsky
Best Book on realities of Public Budgeting and Development
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Historical Periods: Famous Fivei. Until the 1950s- recurrent budgets- law and order.
ii. 1950s-1960s- growth. Domestic development Funds with bilateral technical assistance
=Recurrent vs. Development budgets
iii. 1960s-1970s: Distribution and basic needs. World Bank and Poorest of the poor
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iv. Mid-1970s to mid-1980s: Planning vs. Budgets Planning demanded by technical assistance
Technical assistance- both grants and loans (no private loans to Africa)
Project planning "wins" over national planning and budgeting systems
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v. The Current State of Financial Management: Structural Adjustment
(Since 2001)- Structural Adjustment vs. Social Crisis
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The Current State of Financial Management
1. IMF Stabilization- currency reform, auctions and trade liberalization
2. Decentralized Budgeting- Part of Governance Debate
3. World Bank and UNDP "Management" - Opposing views to SAPs
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DecentralizedBudgets
Bottom Up Model
for Health Service
Delivery
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The Current State of Financial Management
4. Continued Absence of recurrent budgets and loss of control in Crisis: especially re. “Terror Prone,” Collapsed and Fragile States
5. Activity (economy) driven by technical assistance projects - the only game in town
6. Bridging and sectoral loans and grants- major source of international involvement
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Somalia- 2008
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Conditionality- What is the future? 1. Privatization of the economy
a. divestiture
b. contracting out
c. liquidation
d. sell off public private partnership shares
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INDEPTH: ECONOMYOutsourcing: Contracting out becomes big businessCBC News Online | March 7, 2006
Canadian Broadcasting System Image
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What is the Future?2. Privatization (Commercialization) of the bureaucracy
IN-SOURCING- Reinventing Government
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Privatization Debates
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Commercialization- Negativesa. Individuals work with investments and the service/commercial sector
b. Departments sell their services- eg. statistics in Zaire/DRC
c. Sub-economic salaries- offices and telephones- buying soap and selling chickens
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Corruption Patterns
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Commercialization- Negativesd. International conditions for "good" bureaucrats, eg. World Bank in Uganda- special salaries for those on contract with the project
e. Goal: Return to the recurrent budgeting process of the 1950s?
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Back to the Future?
New Framework:
Subsidiarity and decentralized budgeting?
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How Important is Budgeting?
Comments, Questions, Discussion.
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Presentations: Next Week’s Discussion MPA Group- Daniel Okrent, The Last Call
MPIA Group-Dina Rasor and Robert Bauman, Betraying Our Troops
MID Group- Louis A. Picard, A Fragile Balance
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Daniel Okrent- New York Times Born 1948
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Dina Rasor and Robert Bauman Dina Rasor is the Chief
Investigator of the Follow the Money Project
Robert Bauman was Criminal Investigator for the Department of Defense
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Terry Buss (2010) and Louis A. Picard (and Colleagues, 1966)