2011 04-29 government financial transparency in timor-leste

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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

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  • What’s confusing?
  • 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.
  • Presentation will be posted on our blog.
  • 2011 04-29 government financial transparency in timor-leste

    1. 1. Strengthening Public Financial Management through Transparency in Timor-Leste http ://transparencycamp.org/sessions/46/ Transparency Camp April 30, 2011
    2. 2. Confusion? Strengthening Public Financial Management in Timor-Leste
    3. 3. Strengthening Public Financial Management in Timor-Leste Congress cuts transparency funding
    4. 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%
    5. 5. globalization Strengthening Public Financial Management in Timor-Leste
    6. 6. = competition Strengthening Public Financial Management in Timor-Leste
    7. 7. choice Strengthening Public Financial Management in Timor-Leste
    8. 8. citizens are watching Strengthening Public Financial Management in Timor-Leste
    9. 9. empowered Strengthening Public Financial Management in Timor-Leste
    10. 10. Democratic Republic of Timor-Leste (RDTL) Transparency Objectives Strengthening Public Financial Management in Timor-Leste
    11. 11. build civil society Strengthening Public Financial Management in Timor-Leste
    12. 12. build infrastructure Strengthening Public Financial Management in Timor-Leste
    13. 13. build capacity Strengthening Public Financial Management in Timor-Leste
    14. 14. build citizen involvement in government Strengthening Public Financial Management in Timor-Leste
    15. 15. improve government performance Strengthening Public Financial Management in Timor-Leste
    16. 16. Strengthening Public Financial Management in Timor-Leste
    17. 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. 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. 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. 20. = stability Strengthening Public Financial Management in Timor-Leste
    21. 21. = investor confidence Strengthening Public Financial Management in Timor-Leste
    22. 22. a v oi d th e r e so urce c u rs e l Strengthening Public Financial Management in Timor-Leste
    23. 23. technology leapfrog Strengthening Public Financial Management in Timor-Leste
    24. 24. use what works Strengthening Public Financial Management in Timor-Leste
    25. 25. skip what doesn’t work Strengthening Public Financial Management in Timor-Leste
    26. 26. skip stages Strengthening Public Financial Management in Timor-Leste
    27. 27. modernize Strengthening Public Financial Management in Timor-Leste
    28. 28. rapidly Strengthening Public Financial Management in Timor-Leste
    29. 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
    30. 30. staged Strengthening Public Financial Management in Timor-Leste
    31. 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
    32. 32. Strengthening Public Financial Management in Timor-Leste
    33. 33. 1. International Standards Strengthening Public Financial Management in Timor-Leste
    34. 34. IPSAS International Public Sector Accounting Standards Strengthening Public Financial Management in Timor-Leste
    35. 35. EITI Extractive Industries Transparency Initiative Strengthening Public Financial Management in Timor-Leste
    36. 36. GFS Government Financial Statistics Strengthening Public Financial Management in Timor-Leste
    37. 37. MTEF Medium Term Expenditure Frameworks Strengthening Public Financial Management in Timor-Leste
    38. 38. IATI International Aid Transparency Initiative Strengthening Public Financial Management in Timor-Leste
    39. 39. 2. Manager’s Dashboard Strengthening Public Financial Management in Timor-Leste
    40. 40. review Strengthening Public Financial Management in Timor-Leste examines budget execution data integration with macro-economic data
    41. 41. 3. Document Management Strengthening Public Financial Management in Timor-Leste
    42. 42. Strengthening Public Financial Management in Timor-Leste manages correspondence with senior managers repository for freedom on information
    43. 43. 4. e-Procurement Portal Strengthening Public Financial Management in Timor-Leste
    44. 44. review Strengthening Public Financial Management in Timor-Leste government tenders published vendor alerts tender results published
    45. 45. 5. Transparency Portal Strengthening Public Financial Management in Timor-Leste
    46. 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. 47. Goodbye Conflict, Welcome Development <ul><li>Timor-Leste will be the country that goes down in history as the nation to put a stop to falling victim to large companies and the resource curse </li></ul><ul><li>Prime Minister Xanana Gusmão </li></ul><ul><li>When we in the developing world face these types of crisis, which we do on a more regular basis than our colleagues in more economically advanced nations — then we are repeatedly told to increase our openness to the global economy, to trust in the market but to regulate them well. To be honest this approach has worked </li></ul><ul><li>Minister of Finance Emilia Pires </li></ul>Strengthening Public Financial Management in Timor-Leste
    48. 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. 49. www.revenuewatch.org Strengthening Public Financial Management in Timor-Leste another transparency comparison thanks to Jed Miller at Revenue Watch
    50. 50. www.freebalance.com/blog @freebalance Strengthening Public Financial Management in Timor-Leste

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