PIA 3090

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PIA 3090

• Comparative Public Management
• and Policy

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PIA 3090

• Bureaucracies, Budgets and Decision-Making

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The Main Event

• I. Golden Oldies
• II. Literary Map
• III. Grand Synthesis

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Decision-Making and Budgets

• Themes and Definitions

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Themes

• a. 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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Themes

• d. 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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Decision-Making and Financial Management (Review)

• 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

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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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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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Planning, Financial and Budgetary Management
Systems in Poor Counties

• Five historical periods-
• Read Caiden and Wildavsky
• Best Book on realities of Public Budgeting and
  Development

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Historical Periods Famous Five

• i. 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. 1980s- Structural Adjustment

• 1980s-End of century- Structural Adjustment
  "non-budgetary" allocations vs. incremental
  budgeting (define)
• donor monies drive the system in the
  degenerated state
• Goal Back to the Future

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Reforming Government Budgeting

• 1. Baker and Schroeder- reforming public
  finance vs. privatization or devolution
• 2. Naomi Caiden- Planning vs. Budgeting-
  Incrementalism vs. Performance budgets
• 3. Steve Arnold and Phil Morgan- Programs, plans
  and projects (sustainability and the
  Sustainability Issue)

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Reforming Government Budgeting

• 4. Guy Peters- The nature of budgetary
  decision-making- beyond politics? Should it be?
• 5. Barzelay- What financial paradigms are
  cliental oriented?
• 6. Heady- Bureaucracy, Managing Budgets vs.
  Political Development and Imbalance
• 7. Hummel and Miewald- the importance (and
  legitimacy) of criticism?

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The Current State of Financial Management

• (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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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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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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What is the Future?

• 2. Privatization (Commercialization) of the
  bureaucracy
• IN-SOURCING

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Commercialization- Negatives

• a. 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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Commercialization- Negatives

• d. 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?