Participatory Budgeting

Participatory budgeting (PB) 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. When PB is taken seriously and is based on mutual trust local governments and citizen can benefit equally. PB has the potential to provide social inclusion and social equity in the decision making of the allocation of resources in communities with low socioeconomic statuses.

Most broadly, all participatory budgeting schemes allow citizens to deliberate with the goal of creating either a concrete financial plan (a budget), or a recommendation to elected representatives. In the Porto Alegre model, the structure of the scheme gives subjurisdictions (neighborhoods) authority over the larger political jurisdiction (the city) of which they are part. Neighborhood budget committees, for example, have authority to determine the citywide budget, not just the allocation of resources for their particular neighborhood. There is, therefore, a need for mediating institutions to facilitate the aggregation of budget preferences expressed by subjurisdictions.

PB 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

A comprehensive case study of eight municipalities in Brazil analyzing the successes and failures of participatory budgeting has suggested that it often results in more equitable public spending, greater government transparency and accountability, increased levels of public participation (especially by marginalized or poorer residents), and democratic and citizenship learning.

Participatory Budgeting (PB) programs are innovative policymaking processes. Citizens are directly involved in making policy decisions. Forums are held throughout the year so that citizens have the opportunity to allocate resources, prioritize broad social policies, and monitor public spending. These programs are designed incorporate citizens into the policymaking process, spur administrative reform, and distribute public resources to low-income neighborhoods. Social and political exclusion is challenged as lowincome and traditionally excluded political actors are given the opportunity to make policy decisions. Governments and citizens initiate these programs to (i) promote public learning and active citizenship, (ii) achieve social justice through improved policies and resources allocation, and (iii) reform the administrative apparatus. Participating Budgeting programs confront Brazilian political legacies of clientelism, social exclusion, and corruption by making the budgetary process transparent, open, and public. By moving the locus of decision-making from the private offices of politicians and technocrats to public forums, these public forums foster transparency. Participatory budgeting programs act as “citizenship schools” as engagement empowers citizens to better understand their rights and duties as citizens as well as the responsibilities of government. Citizens, it is hoped, will offer helpful and creative solutions to the myriad social and economic problems found in Brazil’s urban centers and small towns. Citizens learn to negotiate among themselves and vis-à-vis the government over the distribution of scarce resources and public policy priorities. It is important to keep in mind that there is no precise or exact model for PB programs. While there are similar tenets and institutional mechanisms, PB programs are structured in response to the particular political, social, and economic environment of each city or state. While alluding to the differences, this report will present a synthesis of the most representative cases.

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