Transparency Camp presentation on transparency technology leapfrog in Timor-Leste with comparison to trends in the United States, full notes. Includes overview of motivations, use of international standards, 10 years of budget data on a transparency portal, building of civil society, procurement & revenue transparency, freedom of information, manager dashboards
Strengthening Public Financial Management in Timor-Leste
1. Strengthening Public Financial Management through Transparency in Timor-Leste http ://transparencycamp.org/sessions/46/ Transparency Camp April 30, 2011
4. How can Timor-Leste afford government transparency? Strengthening Public Financial Management in Timor-Leste Timor-Leste United States Comparison Independence 2002 1776 3.4% GDP Per Capita $2,600 $47,400 5.5% GDP Growth 8% 2.7% 338% Unemployment 20% 9.7% 206% Below poverty line 42% 12% 350% Life Expectancy 67.95 78.92 86% Literacy 58.6% 99% 59%
17. Benefits of Transparency Government Effectiveness and GDP* GDP Per Capita (PPP, logs) UGANDA PAPUA NEW GUINEA AUSTRALIA -3 -2 -1 0 1 2 3 209 Countries Normalized Government Effectiveness Index HIGH LOW * At purchasing power parity Source: The World Bank Higher the government effectiveness = higher the country GDP Per Capita
18. Benefits of Transparency Voice and Accountability and GDP* GDP Per Capita (PPP, logs) UGANDA PAPUA NEW GUINEA AUSTRALIA -3 -2 -1 0 1 2 3 207 Countries Normalized Voice and Accountability Index . HIGH LOW * At purchasing power parity Source: The World Bank Higher the government accountability = higher the country GDP Per Capita
19. Benefits of Transparency Control of Corruption and GDP* GDP Per Capita (PPP, logs) UGANDA PAPUA NEW GUINEA AUSTRALIA -3 -2 -1 0 1 2 3 204 Countries Normalized Control of Corruption Index HIGH LOW * At purchasing power parity Source: The World Bank Higher the control of corruption = higher the country GDP Per Capita
20. = stability Strengthening Public Financial Management in Timor-Leste
21. = investor confidence Strengthening Public Financial Management in Timor-Leste
22. a v oi d th e r e so urce c u rs e l Strengthening Public Financial Management in Timor-Leste
29. Transparency and Accountability review Strengthening Public Financial Management in Timor-Leste The next generation of public financial management technology will allow the public to track the budget live, to see where every dollar is being spent, and to gain renewed confidence in the process
31. Strengthening Public Financial Management in Timor-Leste Public Financial Management – Foundation for Country Growth FMIS (software and hardware) Human Resource Development Capacity Building (Training) GoTL LAWS Procurement Commission Autonomous Agencies Ministries Decentralization Public Financial Management
46. review Strengthening Public Financial Management in Timor-Leste 10 years of budget & financial data www.transparency.gov.tl drill down through the chart of accounts output in RTF, Word, Excel, PDF, Text, XML, HTML http://www.transparency.gov.tl
47.
48. Benchmark Strengthening Public Financial Management in Timor-Leste Timor-Leste United States Comparison 1. Standards GFS, IPSAS, EITI, IATI, MTEF ? Leaped 2. Performance Management Manager’s Dashboards Various tools across government To leap 3. Document Management Manager Document Management Various Records & Correspondence Catching Up 4. e-Procurement August 15 FedBizOpps To leap 5. Transparency Transparency Portal Data.gov & others - underfunding Leaping
49. www.revenuewatch.org Strengthening Public Financial Management in Timor-Leste another transparency comparison thanks to Jed Miller at Revenue Watch
US congress is tying to cut funding for government transparency which is thought to be too expensive
Yet, Timor-Leste can afford this luxury. Why?
Globalization has created a new environment
Of competition among countries
Where businesses have choice of where to do business
Where citizens are watching government
And citizens, as we’ve seen in the Middle East, are empowered.
What is the government trying to accomplish
Enable building civil society: local NGOs, the media
Build infrastructure
educate
Get citizen involvement
And improve government performance.
Does this sound like crazy talk?
Not necessarily: good governance including transparency is positively associated with GDP These are 2004 Figures showing that government effectiveness is linked with higher GDP per capita. Source: "Governance Matters IV: Governance Indicators for 1996-2004 " by Daniel Kaufmann, Aart Kraay and Massimo Mastruzzi, 2005
These are 2004 Figures showing that accountability is linked with higher GDP per capita. Source: "Governance Matters IV: Governance Indicators for 1996-2004 " by Daniel Kaufmann, Aart Kraay and Massimo Mastruzzi, 2005
These are 2004 Figures showing that control of corruption is linked with higher GDP per capita. Source: "Governance Matters IV: Governance Indicators for 1996-2004 " by Daniel Kaufmann, Aart Kraay and Massimo Mastruzzi, 2005 This and the following charts order countries in ascending order according to their GDP per capita . Please refer to Kaufmann, Kraay and Mastruzzi (2005) for more details on the statistical interpretation of these graphs. Blue dots are estimates, line represents standard error
Transparency can provide country stability
Business confidence
But most importantly: avoid the resource curse where developing countries with resources tend to have poorer governance and higher corruption than resource poor countries.
Technology enables developing country governments to leapfrog more developed countries
By using what has been proven
Skip what doesn’t work
& unneeded stages
So, modernizing
Much quicker than developed countries
Here’s the government vision
Which has been staged since 2002
And forms part of holistic reforms in public financial management.
There are 5 transparency steps
Support for international standards
Provide performance tools to government managers
Manage government documents
Including for freedom of information
Electronic government procurement
Goes live in August
Financial transparency
That went live on March 15 th .
This is driven by government leadership and the mission of “goodbye conflict, welcome development”
How does this compare with the United States? The US government does not currently support international standards. Performance and transparency tools differ across departments and agencies. It is possible for Timor-Leste to have more comprehensive government transparency, thanks to technology leapfrog, than the United State by 2012.