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THE OPEN BUDGET INDEXand other indicators of accountable

public financial management

ICGFM 2008 Miami ConferenceMay 20, 2008

Pamela Gomez Project Leader Open Budget InitiativeInternational Budget ProjectCenter on Budget and Policy Priorities 820 First Street, NEWashington, DC 20002E-mail: gomez@centeronbudget.orgTel. (202) 408-1080

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THE OPEN BUDGET INDEXand other indicators of accountable PFM

Joint effort by civil society to collect a comparative data set that covers:

Public access to budget information at the national level throughout the entire budget year

Institutional issues: Legislatures and Supreme Audit Institutions

Purposes

A focal point for public discussion of budget transparency and accountability – to generate understanding and political demand for reform.

A data set for research and advocacy

Capacity building. A survey instrument and other materials to promote awareness of international good practices related to PFM and how they might be applied in a particular country setting.

Are the OBI indicators similar to the other PFM indicators, such as PEFA?

Yes, in many respects.

Both rely on many of the same principles that PMF experts consider sound public financial management practices. (IMF Code, OECD Best Practices)

Both rely on expert assessment or ‘coding,’ backed by evidence. (OBI: one researcher or research group, IBP reviewer, and two anonymous peer reviewers.)

But they also differ from the PEFA indicators…

OBI focus is on PFM system external ‘outputs,’ (i.e. timely information disclosures), do not look at internal aspect of PFM systems.

OBI research is carried out independently of government. (Unannounced site visits to test for public availability of information.)

Government comment on the evaluation was not included in 2006, but has been invited in 2008

All results are made public. Intended as tool to promote public discussion. Also, important to building representative sample for research.

Who has used the indicators?

Civil society groups as a focal point for public events and discussions,

Credit rating agencies (e.g. Moody’s), Bilateral donors: MCC for compact monitoring, Multilateral donors: to triangulate their own assessments,

as a tool to move the reform dialogue forward Journalists, Legislators (drafting or reviewing reform legislation), Academic and research articles.

Also an important set of users…

Reform-minded sitting or former officialsfrom ministries of finance, legislatures ornational audit offices who want to support a

public discussion of the issues…

India Guatemala EgyptSri Lanka Philippines UgandaGhana Costa Rica South Africa

Uses we expect in the future…

• Asses performance over time (2006 v. 2008) Trend within a country –who are the reformers?

• Available in an expanded number of countries, at least 85 in October 2008