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PIA 2000 Introduction to Public Affairs. Managing Budgets and Money. PIA 2000 Focus. Bureaucracies, Budgets and Decision-Making. Decision-Making Models and Spending: An Overview. Rational- Comprehensive Standard Operating Procedures (SOPs) Bureaucratic Politics Group Think - PowerPoint PPT Presentation
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PIA 2000 Introduction to Public Affairs
Managing Budgets and Money
PIA 2000 Focus
Bureaucracies, Budgets and Decision-Making
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)
SOPs
Decision-Making and Budgets
Themes and Definitions
How Purposeful?
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
Zero Based Budgets
Themesd. Auditing vs. Accountability-
Quantitative vs. Qualitative
e. Evaluating- Assessment vs. Judgement
f. Budgeting: Two themes- Reforming and Decision-making
Decision-Making and Financial Management
A Review of Themes
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)
The Asian Model Issue
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)
The Nelson View
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?
Group Think?
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
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
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
v. The Current State of Financial Management: Structural Adjustment
(Since 2001)- Structural Adjustment vs. Social Crisis
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
DecentralizedBudgets
Bottom Up Model
for Health Service
Delivery
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
Somalia- 2008
Conditionality- What is the future? 1. Privatization of the economy
a. divestiture
b. contracting out
c. liquidation
d. sell off public private partnership shares
INDEPTH: ECONOMYOutsourcing: Contracting out becomes big businessCBC News Online | March 7, 2006
Canadian Broadcasting System Image
What is the Future?2. Privatization (Commercialization) of the bureaucracy
IN-SOURCING- Reinventing Government
Privatization Debates
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
Corruption Patterns
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?
Back to the Future?
New Framework:
Subsidiarity and decentralized budgeting?
How Important is Budgeting?
Comments, Questions, Discussion.
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
Daniel Okrent- New York Times Born 1948
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
Terry Buss (2010) and Louis A. Picard (and Colleagues, 1966)