GENERAL INTRODUCTION ON PARTICIPATORY BUDGETING AT LOCAL LEVEL
GENERAL INTRODUCTION ON PARTICIPATORY BUDGETING AT LOCAL LEVEL Prof. Dr. Jochen Franzke Workshop “Participatory Budgeting: Potential and Limitations”, organised by the LR-GG and LR-FS committees in cooperation with the Governance committee of the Congress - Strasbourg, 10 May 2011 Prof. Dr. Jochen Franzke 1
Content 1. New Instrument of Local Democracy 2. Models in Europe 3. Best Practice in Germany 4. Summary Sources Prof. Dr. Jochen Franzke 2
I. New Instrument of Local Democracy Participatory budgets (or citizen’s budgets) - modern form of involvement of non-elected citizens resp. inhabitants in the discussion of municipal budgets and/or allocation of municipal public finances in a direct, permanent and independent way under the following circumstances: 1. The financial and/or budgetary dimension must be discussed (problem of limited resources) 2. The city level or a (decentralized) district with an elected body and some power over administration has to be involved (neighbourhood level not enough) 3. It has to be a repeated process (One meeting or referendum on financial issues not enough) 4. Including forms of public deliberation (specific meetings or forums) (Opening of administrative meetings or representative instances to “normal” citizens not enough) 5. Some accountability of the council on the output (final decisions) required Prof. Dr. Jochen Franzke 3
I. New Instrument of Local Democracy Process started in Porto Alegre (Brazil) in 1989 as Orçamento Participativo (as form of direct democracy) – still ongoing Since then idea spread over Brazil, other countries of Latin and North America, Asia, Africa and finally Europe According to different legal frameworks, varied socio-economical conditions and diverse political intentions of the supporters of participatory budgets the procedure in different countries is highly specific and flexible In Europe predominantly other intentions behind this instrument than in other continents (mostly as instrument of representative local democracy, no priority on social justice etc. ) Prof. Dr. Jochen Franzke 4
I. New Instrument of Local Democracy Innovative character of citizen’s budgets especially based on a unique combination of two different trajectories of local reforms: o part of public management reforms, aiming to improve the quality of public budgets as the main steering instrument of local politics o part of participatory reforms, aiming to increase citizen’s attendance in the local decision making process. = Citizen’s budget comprise issues of efficiency, effectiveness, legitimacy and legality of local politics Prof. Dr. Jochen Franzke 5
I. New Instrument of Local Democracy Participatory Budgets – Part of General Changes in Local Budgeting New local cost accounting system (Performance Budgeting, Product Budgeting) Readable and transparent Budgeting Gender Budgeting Intergenerative Budgeting Sustainable Budgeting Spatial (territorial orientated) Budgeting Participatory Budgeting Prof. Dr. Jochen Franzke 6
II. Models in Europe Models Special Features I. Porto Alegre • Discussion on political guidelines adapted for possible Europe • Decision-making competence Examples Cordoba, Seville • High deliberative quality • Strong influence of civil society on procedure • Open participation According to Sintomer et al. 2007: 119 ff. • Existence of distributive criteria, Prioritisation II. Participation Similar Albacente, Puente of organized • exclusive decision-making Genil interests competence for local associations Prof. Dr. Jochen Franzke 7
II. Models in Europe Models Special Features Examples III. Community • Funds for investments/projects Paris XX, Bradford, funds (not from the budget) Venice • Participants: organized citizens, Business excluded • Decision-making competence • 1 delegation level (committee) • Special concern for. According social groups to Sintomer et al. 2007: 119 ff. • Method: strong autonomy IV. Public- Similar as III Płock /Private • Integration of business/enterprises negociation • Possible influence of investor table Prof. Dr. Jochen Franzke 8
II. Models in Europe Models Special Features Examples V. Proximity • Open access to all citizens Berlin-Lichtenberg, (deliberative) • Only consultative procedure, no Bobigny, St. Dennis participation prioritisation or distributive criteria • Weak influence of civil society • Investments on neighbourhoodlevel / strategic planning on city level • Integration of neighbourhood-level • Medium deliberative quality VI. Consultation Similar as V Hilden, Emsdetten, on public According to and Sintomer et al. 2007: 119 ff. • Discussion focused on services Rheinstetten finances budget balancing • Weak deliberative quality According to Sintomer et al. 2007: 119 ff. Prof. Dr. Jochen Franzke 9
II. Models in Europe Measuring success • Effects on acceptance of financial priorities of local policy (citizen’s satisfaction with local services and planning) • Effects on local democracy (stronger citizen’s participation in local affairs, Empowerment) • Effects on solidarity and identity of residents (helpfulness of citizens among themselves and their identification with the city) • Effects on efficiency (discharge of the local budgets) • Effects on effectiveness (improve local policy performance) Prof. Dr. Jochen Franzke 10
III. Best Practice in Germany Flash point: Crisis of Local Budgets (since Mid-1980 s, increasing since 2007) Starting in 1998 in the municipality of Mönchweiler; Today app. 207 German municipalities involved, 107 of them are discussing introduction, 34 of them carried through the process one or two times (Data from April 2011) The following German cities can be regarded as best practice cases: Bonn, Bad Wildungen, Bad Honnef, Berlin Lichtenberg, Berlin Marzahn. Hellersdorf, Emsdetten, Groß-Umstadt, Hilden, Potsdam, Rheinstetten and Cologne Between 20. 000 and 1. 000 inhabitants; different political leadership (mayors from SPD, CDU and Linke) Prof. Dr. Jochen Franzke 11
III. Best Practice in Germany Substantial variance of partizipatory budgets in Germany Consultation of public finances (in most German cases e. g. Bonn, Emsdetten, large Umstadt, Hilden, Potsdam and Rheinstetten) Obligatory citizen-friendly participation (e. g. in Berlin Lichtenberg, Berlin Marzahn Hellersdorf) Pseudo citizens budget, „funny money “ Citizen’s decision over parts of the budget by local referenda (within the framework of municipal constitutions possible, but still not used) Prof. Dr. Jochen Franzke 12
III. Best Practice in Germany Success Factors / Standards • Political consensus in local council about the procedure • Multi Channel Procedure • Combination with other forms of local democracy • Establishment of own steering institutions • Empowerment of still not engaged citizens (specific measures) • Integration of minorities (specific measures) • Integration in the legal budgeting process of the local Council • Accountability of the council to the citizens Prof. Dr. Jochen Franzke 13
III. Best Practice in Germany Multi Channel Mix Citizens meeting s Köln 2008 Berlin. Lichtenberg 2009 29 % Emsdette n 2008 100 % Potsdam 2009 11 % Internet Written Survey 85 % 9% 60 % 11 % 42 % 47 % E-Mail 2% Survey by Telephone 4% Prof. Dr. Jochen Franzke 14
III. Best Practice in Germany Problems, Open Questions • Win-Situation or Zero-Sum-Game? • Lack of Representativeness? • Capturing of participatory budgeting by local lobby groups? • Participatory budgeting as instrument for legitimating of cost saving decisions? (Austerity by citizen’s budgets? ) • Deciding on the whole budget or only on parts of it? = next steps from more or less mapping the state of the art to analyzing the real impact of citizen’s budgets on the local decision process (changing roles of citizens, councillors and senior local managers) Prof. Dr. Jochen Franzke 15
IV. Summary Participatory Budgets - generic term for variously differentiated possibilities of including citizens into discussion resp. decisions on local budgets Experiment, depending on specific local situation, traditions, resources Possible effects + Contribution to consolidation and priorities of local financial resources + Better co-operation and changing understanding of the role in local politics of all participants involved (in particular the citizenry, local councilors and local administration) + Changing local balance of power and local political culture Prof. Dr. Jochen Franzke 16
Sources Ø EBDON C. /FRANKLIN, A. (2004): Searching for a Role for Citizens in the Budget Process, In Public Budgeting & Finance, n. 24 (1), 32– 49. Ø EBDON, C. /FRANKLIN, A. (2006): Citizen Participation in Budgeting Theory, In: Public Administration Review, May/June 2006, pp. 437 -447. Ø FRANZKE, J. (2008): Changes and Limits of Participatory Budgeting in German Municipalities: The case of Berlin-Lichtenberg; In: Guiseppe Grossi, Riccardo Mussari, Christoph Reichard (eds. ): Local governance and its impact on public service management, CEDAM: Siena, pp. 153 -176. Ø SINTOMER, Y. /HERZBERG C. /RÖCKE, A. (2007): From Porto Alegre to Europe. Potentials and Limitations of Participatory Budgeting in FRANZKE J. , SCHAPP L. , RUANO J. , BOOGERS M. (eds. ), “Tensions between Local Governance and Local Democracy”, Book Series “Local Governance and Democracy, Vol. 1, Den Haag, Reed Elsevier, 113 – 128. Prof. Dr. Jochen Franzke 17
Sources SINTOMER, Y. /HERZBERG, C. /RÖCKE, A. (2010): Der Bürgerhaushalt in Europa – eine realistische Utopie? Zwischen partizipativer Demokratie, Verwaltungsmodernisierung und sozialer Gerechtigkeit, Wiesbaden. Statusbericht (2011): Bürgerhaushalte in Deutschland. Bonn, April 2011 (See http: //www. buergerhaushalt. org/wpcontent/uploads/2011/04/Vierter-Statusbericht-Buergerhaushalt. de-April 2011. pdf) WAMPLER, B. (2000): A Guide to Participatory Budgeting. The International Budget Project, Washington D. C. , Internet: http: //www. internationalbudget. org/resources /library/GPB. pdf. WORLD BANK (2007): Participatory Budgeting, World Bank Public Sector Governance and Accountability Series, Washington DC. Prof. Dr. Jochen Franzke 18
Thank you. Comments and remarks are welcome. Prof. Dr. habil. Jochen Franzke Professor for Administrative Science Dean for Teaching and Learning University Potsdam August-Bebel-Strasse 89, D 14482 Potsdam Tel. : +49/(0)331/ 977 - 3414 Fax: +49/(0)331/ 977 - 3302 E-Mail: franzke@uni-potsdam. de Prof. Dr. Jochen Franzke 19
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