Lessons from the field: What have we learned about civil society budget work?* Helena Hofbauer

1. Lessons from the field: What have we learned about civil society budget work?* Helena Hofbauer Innovation and Partnership Development International Budget Project Based on Paolo de Renzio and Warren Krafchik, “Lessons from the Field”, International Budget Project; and Mark Robinson, “Budget Analysis and Policy Advocacy: the Role of Non-governmental Public Action”, Working Paper 279, Institute of Development Studies, University of Sussex, September 2006.

2. International Budget Project • Mission: Improve governance and reduce poverty by nurturing budget groups. • Strategy: Build core regional and issue partnerships. • Activities: Focus on 4 critical challenges: • Open Budget Initiative improves information access. • Training/TA builds analytical/advocacy skills • Re-granting provides sustained funding • Networking and information exchange promote peer engagement. • Core donor partners: OSI, Hewlett Foundation, Ford Foundation. www.internationalbudget.org

3. What are budget groups? • Independent CSOs dedicating resources to analyzing and influencing public budgeting in over 80 countries. • Common strategies • Applied fiscal research and advocacy • Timely, accessible, useful information • Focus on budget impact on the poor • Diverse contexts and organizations • Levels of income • Political systems • Full spectrum of CSOs www.internationalbudget.org

4. What is budget work? • Wide range of methods enabling CSOs to monitor each stage of the budget process: • Drafting (Resource revenue tracking, Procurement monitoring & Priority setting) • Approval (Macro, expend & revenue analysis) • Execution (Expenditure tracking) • Evaluation/Audit (Social audits, impact monitoring, performance audits, audit tracking) www.internationalbudget.org

5. Case studies – research aims • Document growth of applied budget work. • Provide systematic analysis of the nature and impact of applied budget work. • Disseminate lessons learned to budget groups and policy makers in governments and aid agencies. • Research collaboration between Institute for Development Studies and the International Budget Project, funded by ESRC, the Ford Foundation, Hewlett Foundation, and the Open Society Institute. www.internationalbudget.org

6. Six case studies • DISHA, India • Fundar, Mexico • IBASE, Brasil • IDASA, South Africa • Institute for Public Finance, Croatia • Uganda Debt Network, Uganda www.internationalbudget.org

7. Team composition and field work • Two member teams combining a mix of disciplines, experience and country knowledge. • Maximize cross-evaluation and potential learning outcomes; at least one team member is directly engaged in applied budget work. • Field visits of 10 to 12 working days. • Data gathered from several sources, including interviews and focus group discussions with wide range of stakeholders, public budget and policy data, IBP and group materials, and media reports. www.internationalbudget.org

8. Key research questions • Budget policies: Changes in budget policies and systems; budget allocations; implementation (efficiency and effectiveness) and outputs. • Budget process: Budget awareness and understanding; budget transparency; participation in the budget process www.internationalbudget.org

9. FINDINGS www.internationalbudget.org

10. Long-term outcomes Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness Intermediate outcomes Budget process Budget policies Relationships and advocacy External factors Internal factors

11. Long-term outcomes Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness Intermediate outcomes Budget process Budget policies Relationships and advocacy External factors Internal factors

12. Long-term outcomes Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness • Intermediate outcomes • Budget process • 1. Budget awareness and literacy • 2. Budget transparency and availability of budget information • 3. Engagement in the budget process • Budget policies • 1. Budget systems • 2. Budget allocations • 3. Budget results Relationships and advocacy External factors Internal factors

13. Long-term outcomes Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness • Intermediate outcomes • Budget process • 1. Budget awareness and literacy: building and expanding public understanding and interest in budget issues • * How to link budget issues to citizens’ daily lives • *How to use media creatively to get the message across • Budget policies Relationships and advocacy External factors Internal factors

14. Long-term outcomes Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness • Intermediate outcomes • Budget process • 2. Budget transparency and availability of budget information: expanding public access to budget information, in terms of quantity and quality • *Key sources of independent, authoritative and accessible information • *Information on the impact of budget policies on the poor • *Repackaging information in accessible ways • Budget policies Relationships and advocacy External factors Internal factors

15. Long-term outcomes Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness • Intermediate outcomes • Budget process • 3. Engagement in the budget process: expanding the opportunities for effective engagement of citizens and oversight institutions in the budget process • *Specialized knowledge and skills for participation in budget process • *Facilitate and contribute to other CSO’s engagement • *Increase legislators’ engagement • *Enhance quality of media input • Budget policies Relationships and advocacy External factors Internal factors

16. Long-term outcomes Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness • Intermediate outcomes • Budget process • 1. Budget awareness and literacy • 2. Budget transparency and availability of budget information • 3. Engagement in the budget process • Budget policies • 1. Budget systems: systemic changes in the legal/institutional framework • *Difficult to achieve, more long-term systemic change (some changes in South Africa and Croatia) Relationships and advocacy External factors Internal factors

17. Long-term outcomes Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness • Intermediate outcomes • Budget process • 1. Budget awareness and literacy • 2. Budget transparency and availability of budget information • 3. Engagement in the budget process • Budget policies • 2. Budget allocations: • *Increase in specific budget lines and programs aimed at the poor • *Program design modifications and budget increases • *IDASA-CBU, Child Support Grant (South Africa) • *Fundar, maternal mortality (Mexico) Relationships and advocacy External factors Internal factors

18. Long-term outcomes Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness • Intermediate outcomes • Budget process • 1. Budget awareness and literacy • 2. Budget transparency and availability of budget information • 3. Engagement in the budget process • Budget policies • 3. Budget results: improving the impact of the budget on the poor • *Monitoring budget implementation and service delivery • *DISHA: Linking allocations to local projects (Gujarat, India) • *UDN: community monitors check quality of service delivery (Uganda) Relationships and advocacy External factors Internal factors

19. Long-term outcomes Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness Intermediate outcomes Budget process Budget policies External factors Relationships and advocacy Internal factors

20. Long-term outcomes Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness Intermediate outcomes Budget process Budget policies External factors 1. Political environment 2. Legal and institutional framework 3. Role of international donors 4. Literacy levels and public interest in budget issues Relationships and advocacy Internal factors

21. Long-term outcomes Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness Intermediate outcomes Budget process Budget policies External factors 1. Political environment * Easier in democratic environments, but also possible in less transparent countries. * Important to constantly monitor the political landscape and adapt strategies * Always produce high-quality research and work strategically Relationships and advocacy Internal factors

22. Long-term outcomes Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness Intermediate outcomes Budget process Budget policies External factors 2. Legal and institutional framework * Need to understand key aspects of legal and institutional framework * Engage different players within institutional arrangement Relationships and advocacy Internal factors

23. Long-term outcomes Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness Intermediate outcomes Budget process Budget policies External factors 3. Role of international donors * Influence budget systems and policies in recipient countries (macroeconomic framework) * Sometimes determine specific policies (pro-poor) * Involved in public finance management reforms Relationships and advocacy Internal factors

24. Long-term outcomes Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness Intermediate outcomes Budget process Budget policies External factors 4. Literacy levels and public interest in budget issues * An educated, informed citizenry makes budget work easier * Challenge: no natural audiences * Strategies: social movements, simplified involvement of community leaders, e-communication and learning Relationships and advocacy Internal factors

25. Long-term outcomes Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness Intermediate outcomes Budget process Budget policies Internal factors Relationships and advocacy External factors

26. Long-term outcomes Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness Intermediate outcomes Budget process Budget policies Internal factors 1. Mission 2. Leadership 3. Capacity 4. Products/dissemination Relationships and advocacy External factors

27. Long-term outcomes Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness Intermediate outcomes Budget process Budget policies Internal factors 1. Mission *Budget work can be carried out effectively by a wide variety of groups *Variety of missions: poverty reduction, democracy, access to information *Budget work and provision of timely, objective, accessible and accurate information as part of the mission *Research-based evidence to inform policy debate and advocacy *Non-partisanship: analysis based on facts, not ideology — credibility Relationships and advocacy External factors

28. Long-term outcomes Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness Intermediate outcomes Budget process Budget policies Internal factors 2. Leadership *Common problem: “founder syndrome” *Priority: Multiple layers of potential leaders *Transitions must be carefully managed Relationships and advocacy External factors

29. Long-term outcomes Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness Intermediate outcomes Budget process Budget policies Internal factors 3. Capacity *Technical skills for budget work are not easily found — no formal training available * However, technical skills for budget work are easily learned — no economics degree required *Mix of strategies to develop skills *Challenge: retaining skilled capacity Relationships and advocacy External factors

30. Long-term outcomes Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness Intermediate outcomes Budget process Budget policies Internal factors 4. Products/dissemination *Disseminate in diverse, targeted, clear and timely ways *Address each audience specifically Relationships and advocacy External factors

31. Long-term outcomes Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness Intermediate outcomes Budget process Budget policies Relationships and advocacy External factors Internal factors

32. Long-term outcomes Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness Intermediate outcomes Budget process Budget policies Relationships and advocacy 1. With the rest of civil society 2. With the media 3. With the executive 4. With the legislature 5. With donors External factors Internal factors

33. Long-term outcomes Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness Intermediate outcomes Budget process Budget policies Relationships and advocacy 1. With the rest of civil society *Success in isolation is hard *Partnerships ensure that groups address issues of broad interest, and draw on others’ strengths and capacities *Long-term, strategic, project-based or tactical alliances External factors Internal factors

34. Long-term outcomes Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness Intermediate outcomes Budget process Budget policies Relationships and advocacy 2. With the media *Governments take media into account — it elevates the stakes *Different strategies: articles published regularly, training for journalists, special coverage External factors Internal factors

35. Long-term outcomes Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness Intermediate outcomes Budget process Budget policies Relationships and advocacy 3. With the executive *Policy makers are the final audience budget groups need to reach *Quiet diplomacy, constructive criticism *Identification of like-minded technicians in key positions *Explore formal and informal channels External factors Internal factors

36. Long-term outcomes Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness Intermediate outcomes Budget process Budget policies Relationships and advocacy 4. With the legislature *Natural partnership: budget groups need information, legislature needs analysis *Strengthen the legislature’s role of accountability External factors Internal factors

37. Long-term outcomes Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness Intermediate outcomes Budget process Budget policies Relationships and advocacy 5. With donors *They have more information than civil society *They have access to decision makers *They can play a role in influencing governments External factors Internal factors

38. Democracy Active Citizenship Accountability Integrity Poverty reduction Equity Justice Inclusiveness Long-term outcomes • Intermediate outcomes • Budget process • 1. Budget awareness and literacy • 2. Budget transparency and availability of budget information • 3. Engagement in the budget process • Budget policies • 1. Budget systems • 2. Budget allocations • 3. Budget results Relationships and advocacy 1. With the rest of civil society 2. With the media 3. With the executive 4. With the legislature 5. With donors External factors 1. Political environment 2. Legal and institutional framework 3. Role of international donors 4. Literacy levels and public interest in budget issues Internal factors 1. Mission 2. Leadership 3. Capacity 4. Products/dissemination

39. IBP’S STRATEGY TO STRENGTHEN BUDGET WORK AND DEEPEN IMPACT www.internationalbudget.org

40. The Civil Society Budget Initiative • Small grants initiative, now in third year of operation • Coordinated by IBP • Funded by DfiD and SIDA and Norad • Led by a multi-stakeholder steering committee of donors and civil society organizations • Mission: To promote civil society budget work in low-income countries where applied budget work is emerging • Goal: To improve government accountability & achieve poverty reduction www.internationalbudget.org

41. Principles • Work with groups of local origin to build sustained internal capacity; • Budget work to become part of core activities of partners; • Horizontal collaboration among CSO, strategic alliances at global level; • Follow local demand for budget work in any field of interest. www.internationalbudget.org

42. Criteria of eligibility • Clear vision of budget work as core activity • Ability to combine solid analytic work with substantial relationships in civil society • Favorable national, regional or local climate for budget work to advance the interests of poor people; • Independent of political parties • Only open to targeted countries www.internationalbudget.org

43. Future Directions • Scale up impact to more organizations • Provide a combination of tailored support, including funding, training, technical assistance and a peer network for horizontal exchange and learning, to established budget groups and organizations that are new to the field • Grant decisions made by Steering Committee • Mission: To strengthen civil society budget work in middle and low-income countries, with a focus on pro-poor agendas • Strategy: To build a vibrant network of dedicated budget groups, that share a set of core goals and maximize South-South relationships and horizontal learning. www.internationalbudget.org

44. 820 First St. NE Suite 510 Washington, DC 20002 USA Tel: 1-202 408 1080 Fax: 1-202 408 8173 hofbauer@cbpp.org