Participatory budgeting
Encyclopedia
Participatory budgeting is a process of democratic deliberation
and decision-making, and a type of participatory democracy
, in which ordinary people decide how to allocate part of a municipal or public budget
. Participatory budgeting allows citizens to identify, discuss, and prioritize public spending projects, and gives them the power to make real decisions about how money is spent.
Participatory budgeting generally involves several basic steps:
1) Community members identify spending priorities and select budget delegates
2) Budget delegates develop specific spending proposals, with help from experts
3) Community members vote on which proposals to fund
4) The city or institution implements the top proposals
Various studies have suggested that participatory budgeting results in more equitable public spending, higher quality of life, increased satisfaction of basic needs, greater government transparency
and accountability, increased levels of public participation (especially by marginalized or poorer residents), and democratic and citizenship learning.
, Brazil
, starting in 1989. Participatory budgeting was part of a number of innovative reform programs started in 1989 to overcome severe inequality in living standards amongst city residents. One third of the city’s residents lived in isolated slums at the city outskirts, lacking access to public amenities (water, sanitation, health care facilities, and schools).
Participatory budgeting in Porto Alegre occurs annually, starting with a series of neighborhood, regional, and citywide assemblies, where residents and elected budget delegates identify spending priorities and vote on which priorities to implement. Porto Alegre spends about 200 million dollars per year on construction and services, this money is subject to participatory budgeting. Annual spending on fixed expenses such as debt service and pensions, are not subject to public participation. Around fifty thousand residents of Porto Alegre now take part in the participatory budgeting process (compared to 1.5 million city inhabitants), with the number of participants growing year on year since 1989. Participants are from diverse economic and political backgrounds.
The participatory budgeting cycle starts in January and assemblies across the city facilitate maximum participation and interaction. Each February there is instruction from city specialists in technical and system aspects of city budgeting. In March there are plenary assemblies in each of the city's 16 districts as well as assemblies dealing with such areas as transportation, health, education, sports, and economic development. These large meetings—with participation that can reach over 1,000—elect delegates to represent specific neighborhoods. The mayor and staff attend to respond to citizen concerns. In the following month's delegates meet weekly or biweekly in each district to review technical project criteria and district needs. City department staff may participate according to their area of expertise. At a second regional plenary, regional delegates prioritize the district's demands and elect 42 councillors representing all districts and thematic areas to serve on the Municipal Council of the Budget. The main function of the Municipal Council of the Budget is to reconcile the demands of each district with available resources, and to propose and approve an overall municipal budget. The resulting budget is binding, though the city council can suggest, but not require changes. Only the Mayor may veto the budget, or remand it back to the Municipal Council of the Budget (this has never happened).
paper suggests that participatory budgeting has led to direct improvements in facilities in Porto Alegre
. For example, sewer
and water connections increased from 75% of households in 1988 to 98% in 1997. The number of school
s quadrupled since 1986.
The high number of participants, after more than a decade, suggests that participatory budgeting encourages increasing citizen involvement, according to the paper. Also, Porto Alegre’s health and education budget increased from 13% (1985) to almost 40% (1996), and the share of the participatory budget in the total budget increased from 17% (1992) to 21% (1999).
The paper concludes that participatory budgeting can lead to improved conditions for the poor
. Although it cannot overcome wider problems such as unemployment
, it leads to "noticeable improvement in the accessibility and quality of various public welfare amenities".
Based on Porto Alegre more than 140 (about 2.5%) of the 5,571 municipalities in Brazil
have adopted participatory budgeting.
, participatory budgeting has spread to hundreds of Latin America
n cities, and dozens of cities in Europe
, Asia
, Africa
, and North America
. More than 1200 municipalities are estimated to have initiated participatory budgeting. In some cities, participatory budgeting has been applied for school, university, and public housing budgets. These international approaches differ significantly, and they are shaped as much by their local contexts as by the Porto Alegre model.
A number of towns and cities in France
, Italy
, Germany
, Spain
and the United Kingdom
have initiated participatory budgeting processes. In Canada
, participatory budgeting has been implemented with public housing, neighbourhood groups, and a public schools, in the cities of Toronto
, Guelph
, and West Vancouver. Similar budget processes have been used in communities in India
and Africa. In France, the Region Poitou-Charentes
has launched an experience of participatory budgeting in its secondary schools. The first recorded Participatory Budgeting process in the United States is in Chicago, Illinois. Led by the ward's Alderman, Joe Moore, Chicago's 49th Ward is undertaking this process http://www.ward49.com/participatory-budgeting/ with the Alderman's "Menu Money." Menu Money is a yearly budgeted amount each of Chicago's 50 wards receives for use on capital expenses. This money in other wards is typically allocated at the complete discretion of a ward's Alderman.
and Porto Alegre
a World Bank paper points out that lack of representation of extremely poor
people in participatory budgeting can be a shortcoming. Participation of the very poor and of the young is highlighted as a challenge. Participatory budgeting may also struggle to overcome existing clientelism
. Other observations include that particular groups are less likely to participate once their demands have been met and that slow progress of public works can frustrate participants.
Deliberation
Deliberation is a process of thoughtfully weighing options, usually prior to voting. In legal settings a jury famously uses deliberation because it is given specific options, like guilty or not guilty, along with information and arguments to evaluate. Deliberation emphasizes the use of logic and...
and decision-making, and a type of participatory democracy
Participatory democracy
Participatory Democracy, also known as Deliberative Democracy, Direct Democracy and Real Democracy , is a process where political decisions are made directly by regular people...
, in which ordinary people decide how to allocate part of a municipal or public budget
Budget
A budget is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending. A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods...
. Participatory budgeting allows citizens to identify, discuss, and prioritize public spending projects, and gives them the power to make real decisions about how money is spent.
Participatory budgeting generally involves several basic steps:
1) Community members identify spending priorities and select budget delegates
2) Budget delegates develop specific spending proposals, with help from experts
3) Community members vote on which proposals to fund
4) The city or institution implements the top proposals
Various studies have suggested that participatory budgeting results in more equitable public spending, higher quality of life, increased satisfaction of basic needs, greater government transparency
Transparency (humanities)
Transparency, as used in science, engineering, business, the humanities and in a social context more generally, implies openness, communication, and accountability. Transparency is operating in such a way that it is easy for others to see what actions are performed...
and accountability, increased levels of public participation (especially by marginalized or poorer residents), and democratic and citizenship learning.
Porto Alegre
The first full participatory budgeting process was developed in the city of Porto AlegrePorto Alegre
Porto Alegre is the tenth most populous municipality in Brazil, with 1,409,939 inhabitants, and the centre of Brazil's fourth largest metropolitan area . It is also the capital city of the southernmost Brazilian state of Rio Grande do Sul. The city is the southernmost capital city of a Brazilian...
, Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
, starting in 1989. Participatory budgeting was part of a number of innovative reform programs started in 1989 to overcome severe inequality in living standards amongst city residents. One third of the city’s residents lived in isolated slums at the city outskirts, lacking access to public amenities (water, sanitation, health care facilities, and schools).
Participatory budgeting in Porto Alegre occurs annually, starting with a series of neighborhood, regional, and citywide assemblies, where residents and elected budget delegates identify spending priorities and vote on which priorities to implement. Porto Alegre spends about 200 million dollars per year on construction and services, this money is subject to participatory budgeting. Annual spending on fixed expenses such as debt service and pensions, are not subject to public participation. Around fifty thousand residents of Porto Alegre now take part in the participatory budgeting process (compared to 1.5 million city inhabitants), with the number of participants growing year on year since 1989. Participants are from diverse economic and political backgrounds.
The participatory budgeting cycle starts in January and assemblies across the city facilitate maximum participation and interaction. Each February there is instruction from city specialists in technical and system aspects of city budgeting. In March there are plenary assemblies in each of the city's 16 districts as well as assemblies dealing with such areas as transportation, health, education, sports, and economic development. These large meetings—with participation that can reach over 1,000—elect delegates to represent specific neighborhoods. The mayor and staff attend to respond to citizen concerns. In the following month's delegates meet weekly or biweekly in each district to review technical project criteria and district needs. City department staff may participate according to their area of expertise. At a second regional plenary, regional delegates prioritize the district's demands and elect 42 councillors representing all districts and thematic areas to serve on the Municipal Council of the Budget. The main function of the Municipal Council of the Budget is to reconcile the demands of each district with available resources, and to propose and approve an overall municipal budget. The resulting budget is binding, though the city council can suggest, but not require changes. Only the Mayor may veto the budget, or remand it back to the Municipal Council of the Budget (this has never happened).
Outcomes
A World BankWorld Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
paper suggests that participatory budgeting has led to direct improvements in facilities in Porto Alegre
Porto Alegre
Porto Alegre is the tenth most populous municipality in Brazil, with 1,409,939 inhabitants, and the centre of Brazil's fourth largest metropolitan area . It is also the capital city of the southernmost Brazilian state of Rio Grande do Sul. The city is the southernmost capital city of a Brazilian...
. For example, sewer
Sanitary sewer
A sanitary sewer is a separate underground carriage system specifically for transporting sewage from houses and commercial buildings to treatment or disposal. Sanitary sewers serving industrial areas also carry industrial wastewater...
and water connections increased from 75% of households in 1988 to 98% in 1997. The number of school
School
A school is an institution designed for the teaching of students under the direction of teachers. Most countries have systems of formal education, which is commonly compulsory. In these systems, students progress through a series of schools...
s quadrupled since 1986.
The high number of participants, after more than a decade, suggests that participatory budgeting encourages increasing citizen involvement, according to the paper. Also, Porto Alegre’s health and education budget increased from 13% (1985) to almost 40% (1996), and the share of the participatory budget in the total budget increased from 17% (1992) to 21% (1999).
The paper concludes that participatory budgeting can lead to improved conditions for the poor
Poor
Poor is an adjective related to a state of poverty, low quality or pity.People with the surname Poor:* Charles Henry Poor, a US Navy officer* Charles Lane Poor, an astronomer* Edward Erie Poor, a vice president of the National Park Bank...
. Although it cannot overcome wider problems such as unemployment
Unemployment
Unemployment , as defined by the International Labour Organization, occurs when people are without jobs and they have actively sought work within the past four weeks...
, it leads to "noticeable improvement in the accessibility and quality of various public welfare amenities".
Based on Porto Alegre more than 140 (about 2.5%) of the 5,571 municipalities in Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
have adopted participatory budgeting.
Implementation around the world
Since its emergence in Porto AlegrePorto Alegre
Porto Alegre is the tenth most populous municipality in Brazil, with 1,409,939 inhabitants, and the centre of Brazil's fourth largest metropolitan area . It is also the capital city of the southernmost Brazilian state of Rio Grande do Sul. The city is the southernmost capital city of a Brazilian...
, participatory budgeting has spread to hundreds of Latin America
Latin America
Latin America is a region of the Americas where Romance languages – particularly Spanish and Portuguese, and variably French – are primarily spoken. Latin America has an area of approximately 21,069,500 km² , almost 3.9% of the Earth's surface or 14.1% of its land surface area...
n cities, and dozens of cities in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
, Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
, Africa
Africa
Africa is the world's second largest and second most populous continent, after Asia. At about 30.2 million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area...
, and North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
. More than 1200 municipalities are estimated to have initiated participatory budgeting. In some cities, participatory budgeting has been applied for school, university, and public housing budgets. These international approaches differ significantly, and they are shaped as much by their local contexts as by the Porto Alegre model.
A number of towns and cities in France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
, Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
, Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
and the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
have initiated participatory budgeting processes. In Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, participatory budgeting has been implemented with public housing, neighbourhood groups, and a public schools, in the cities of Toronto
Toronto
Toronto is the provincial capital of Ontario and the largest city in Canada. It is located in Southern Ontario on the northwestern shore of Lake Ontario. A relatively modern city, Toronto's history dates back to the late-18th century, when its land was first purchased by the British monarchy from...
, Guelph
Guelph
Guelph is a city in Ontario, Canada.Guelph may also refer to:* Guelph , consisting of the City of Guelph, Ontario* Guelph , as the above* University of Guelph, in the same city...
, and West Vancouver. Similar budget processes have been used in communities in India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
and Africa. In France, the Region Poitou-Charentes
Poitou-Charentes
Poitou-Charentes is an administrative region in central western France comprising four departments: Charente, Charente-Maritime, Deux-Sèvres and Vienne. The regional capital is Poitiers.-Politics:The regional council is composed of 56 members...
has launched an experience of participatory budgeting in its secondary schools. The first recorded Participatory Budgeting process in the United States is in Chicago, Illinois. Led by the ward's Alderman, Joe Moore, Chicago's 49th Ward is undertaking this process http://www.ward49.com/participatory-budgeting/ with the Alderman's "Menu Money." Menu Money is a yearly budgeted amount each of Chicago's 50 wards receives for use on capital expenses. This money in other wards is typically allocated at the complete discretion of a ward's Alderman.
Criticism
Reviewing the experience in BrazilBrazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
and Porto Alegre
Porto Alegre
Porto Alegre is the tenth most populous municipality in Brazil, with 1,409,939 inhabitants, and the centre of Brazil's fourth largest metropolitan area . It is also the capital city of the southernmost Brazilian state of Rio Grande do Sul. The city is the southernmost capital city of a Brazilian...
a World Bank paper points out that lack of representation of extremely poor
Poor
Poor is an adjective related to a state of poverty, low quality or pity.People with the surname Poor:* Charles Henry Poor, a US Navy officer* Charles Lane Poor, an astronomer* Edward Erie Poor, a vice president of the National Park Bank...
people in participatory budgeting can be a shortcoming. Participation of the very poor and of the young is highlighted as a challenge. Participatory budgeting may also struggle to overcome existing clientelism
Clientelism
Clientelism is a term used to describe a political system at the heart of which is an assyemtric relationship between groups of political actors described as patrons and clients...
. Other observations include that particular groups are less likely to participate once their demands have been met and that slow progress of public works can frustrate participants.
See also
- Participatory economicsParticipatory economicsParticipatory economics, often abbreviated parecon, is an economic system proposed primarily by activist and political theorist Michael Albert and radical economist Robin Hahnel, among others. It uses participatory decision making as an economic mechanism to guide the production, consumption and...
- Participatory planningParticipatory planningParticipatory planning is an urban planning paradigm that emphasizes involving the entire community in the strategic and management processes of urban planning; or, community-level planning processes, urban or rural...
- Participatory auditing
- Participatory justiceParticipatory justiceParticipatory justice is the use of alternative dispute resolution, such as mediation, conciliation, and arbitration, in criminal justice systems, instead of, or before, going to court...
- Programme budgetingProgramme budgetingProgramme budgeting is the budgeting system that, contrary to conventional budgeting, describes and gives the detailed costs of every activity or programme that is to be carried out in a budget....
- Public participationPublic participationPublic participation is a political principle or practice, and may also be recognised as a right . The terms public participation may be used interchangeably with the concept or practice of stakeholder engagement and/or popular participation.Generally public participation seeks and facilitates the...
External links
- Map (non-exhaustive) of participatory budgeting initiatives around the world
- The Participatory Budgeting Project - a non-profit organization that supports participatory budgeting in North America and hosts an international resource site.
- www.participatorybudgeting.org.uk - information on participatory budgeting in the UK
- Case study on the Electronic Participatory Budgeting of the city of Belo Horizonte (Brazil)
- Study with cases of Participatory Budgeting experiences in OECD countries
- www.citymayors.com - PB in Brazil
- PB in Rosario, Argentina Official Site of PB in Rosario, Argentina (spanish).
- www.chs.ubc.ca/participatory - links to participatory budgeting articles and resources
- http://fcis.oise.utoronto.ca/~daniel_schugurensky/lclp/poa_vl.html - links to participatory budgeting articles and resources
- Participatory Budgeting Google Group - participatory budgeting listserv
- www.nuovomunicipio.org - Rete del Nuovo Municipio, the Italian project linking Local Authorities, scientists and local committees for promoting Participatory Democracy and Active Citizenship mainly by way of PB
- "Experimentos democráticos. Asambleas barriales y Presupuesto Participativo en Rosario, 2002-2005" - Doctoral Dissertation of Alberto Ford on Participatory Budgeting in Rosario, Argentina (spanish).