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Participatory Budgeting

Brief Description:

Participatory budgeting is an umbrella term which covers a variety of mechanisms that delegate power or influence over local budgets, investment priorities and economic spending to citizens.

Description:

Participatory budgeting involves citizens directly in making decisions about budget issues, either on a small scale at the service or neighbourhood level or on a more strategic level at a city or state level.

In practice, the power delegated to the citizens in the decision processes varies, from providing decision-makers with information about citizen preferences to processes that place parts of the budget under direct citizen control.

In general the amount of power devolved has tended to be larger in Latin America where participatory budgeting was developed compared to in Europe and North America.

The scale of citizen participation has ranged from single neighbourhoods to an entire state (with populations of millions). Discussions are often limited to new investment rather than discussing spending as a whole. It can be run as a one off process, but long-term benefits tend such as social capital and ownership, require a reoccurring, cyclical process.

The 'classic' participatory budgeting model as dveeloped in Brazil makes use of area meetings where all citizens can attend and determine the spending of local budgets (set based on population and poverty levels). Citizens also elect representatives to attend larger city wide meetings where more wide ranging priorities are determined.

Peer grant giving has also been carried out under the banner of participatory budgeting. This allows a group of citizens the power to assign grants for community projects and other spending.


Used For:

Providing citizens with direct or indirect infleunce over budget development, prioritisation and/or decisions.

Suitable participants:

Participatory budgeting can be done with both direct participation of citizens or through directly elected citizen representatives. The larger, city wide processes often combine the two with direct participation at neighbourhood level where representatives are elected for city wide forums.

The total number of participants in all meetings in city wide processes can be tens of thousands. In the UK the numbers have tended to be more modest, in the hundreds at most.


Cost:

Participatory budgeting is often undertaken to increase efficiency in the budget and thus save money. The process of citizen involvement in budgets intself is however costly.

Setting up a city wide infrastructure of forums and meetings requires a large investment of money and staff time (potentially running into millions of pounds). Processes run at the local level around a particular service or neighbourhood can be cheaper but still require substantial commitment to work.


Time Requirements:

It is possible to run a participatory budgeting excersise as a one day one off event. However the main benefits of participatory budgeting in terms of increased trust and citizen empowerment only develop over time. Ideally participatory budgeting should form a continuous part of the budget cycle, ensuring that citizens feel assured that their efforts will not be wasted.

When To Use / What It Can Deliver:

You should use Participatory Budgeting when:

  • you want to get citizens directly involved in deterining how to spend public money
  • you want citizen input into spending priorities
  • you want to increase your understanding of local needs
  • you want to increase teh public's awareness of the trade offs involved in the budget

Participatory budgeting can deliver increased transparency and re-establish the legitimacy of government budget decisions. It has also been shown to build the skills and awareness of participants through the process of deliberation.

By being exposed to the trade offs surrounding financial decisions participants can acquire a deeper understanding of the work of government. The fact that Participatory budgeting often involves control over actual resources can be a catalyst for civic mobilisation, especially in poorer areas.

In Porto Alegre, Brazil (the city with the longest running participatory budgeting process) there has been a significant reallocation of resources towards spending in poorer areas as well as increased efficiency and reduced corruption as a result of participatory budgeting.


When Not To Use / What It Cannot Deliver:

You should not use Participatory Budgeting when:

  • you are unwilling to delegate any real power to participants
    the tradeoffs involved are extremely technical and are not of interest to the general public
  • you are looking for a one off project.

Strengths:

Involves decisions about spending and devolving real power
Can be a very public process, which conveys legitimacy beyond the immediate participants

Weaknesses:

Can create unrealistic expectations amongst participants if managed badly
Works best where there are high levels of community activism to begin with
Can undermine the role of elected representatives in certain situations
Doesn’t work well where central targets and restricted budgets limit the amount of power that can be given to citizens

In most processes meetings are open to all, creating the risk of certain groups dominating the proceedings. However, research into participatory budgeting in Porto Alegre shows that the poorest neighbourhoods have actually been the more active participants. This can probably be linked to the fact that poorer neighbourhoods feel a more pressing need for improved services.


Origin:

Local Government
Participatory budgeting was developed in Brazil in the late 1980s. Since then, participatory budgeting concepts and mechanisms have spread in Latin America and the rest of the world, and by 2003, more than 200 municipalities across Brazil were be experimenting with participatory budgeting. Independently similar methods have been developed in other countries, such as with Kerala, in South India.

Case Studies:


Related Methods


Restrictions In Use


None

Further Information

Participatory Budgeting Unit
C/o Church Action on Poverty
Central Buildings
Oldham St
Manchester M1 1JT
UK
Email: mail@participatorybudgeting.org.uk
Office Tel: 0161 236 9321
Fax: 0161 237 5359
Publications:
Bringing budgets alive: PB in practise. http://www.participatorybudgeting.org.uk/Downloads/Bringing%20budgets%20alive.pdf
Participatory Budgeting in the UK: an evaluation from a practitioner perspective http://www.participatorybudgeting.org.uk/Downloads/PB%20from%20a%20practitioner%20perspective%20report%20June%202007.pdf

Popular Methods
21st Century Town Meeting
Citizens Jury
Deliberative Polling
Open Space
Participatory Appraisal
Participatory Budgeting

Central government is particularly interested in PB because it can re-invigorate democracy.  Typically, especially when the process is repeated (word of mouth spreads the interest, as most participants are very positive about the experience), PB can attract larger numbers of participants than other engagement methods, and is known for attracting those people who wouldn't necessarily attend other consultation/engagement events - i.e. not the usual suspects.  This is because people can feel they have an opportunity to really influence priorities because it's linked to budgets.  As a result, the louder voices are often tempered by deliberation and an overall majority - creating greater chance of the decisions made being reflective of the wider community, and it is more participative, therefore renewing greater interest in politics and decisions at a local level in more citizens.  Those councillors involved in PB tend to be trusted by participants providing legitimacy and a real sense that democratic elections locally are worth voting in, that they do make a difference.