2011 05-17 government financial transparency in timor-leste

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This presentation describes how the Government of the Republic of Timor-Leste employs the FreeBalance Transparency Portal and other mechanisms to create public financial management transparency to assist civil society, build infrastructure, set education goals, involve citizens, and improve government performance. The presentation describes how transparency was sequenced with other government reform.

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2011 05-17 government financial transparency in timor-leste

  1. 1. Strengthening  Public Financial Management  through Transparency  in Timor‐Leste International Consortium on Governmental  Financial Management May 17, 2011
  2. 2. Confusion? Strengthening Public Financial  2 Management in Timor‐Leste 
  3. 3. Congress cuts transparency fundingStrengthening Public Financial  Management in Timor‐Leste 
  4. 4. How can Timor‐Leste afford government transparency? Timor‐Leste United States ComparisonIndependence 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% Strengthening Public Financial  4 Management in Timor‐Leste 
  5. 5. globalization Strengthening Public Financial  Management in Timor‐Leste 
  6. 6. = competition Strengthening Public Financial  Management in Timor‐Leste 
  7. 7. choiceStrengthening 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  ObjectivesStrengthening Public Financial  10 Management in Timor‐Leste 
  11. 11. build civil societyStrengthening 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. 3 Benefits of Transparency AUSTRALIA HIGH 2 Government Effectiveness and GDP*Normalized Government Effectiveness Index 1 PAPUA NEW GUINEA UGANDA 0 -1 Higher the government effectiveness -2 = higher the country GDP Per Capita LOW 209 Countries -3 Source: The World Bank GDP Per Capita (PPP, logs) * At purchasing power parity Strengthening Public Financial  Management in Timor‐Leste 
  18. 18. 3 HIGH Benefits of Transparency Voice and Accountability and GDP* AUSTRALIA 2Normalized Voice and Accountability Index PAPUA NEW GUINEA 1 UGANDA 0 -1 Higher the government accountability -2 = higher the country GDP Per Capita LOW 207 Countries . -3 Source: The World Bank GDP Per Capita (PPP, logs) * At purchasing power parity Strengthening Public Financial  Management in Timor‐Leste 
  19. 19. 3 Benefits of Transparency AUSTRALIA HIGH 2 Control of Corruption and GDP*Normalized Control of Corruption Index 1 PAPUA NEW GUINEA 0 UGANDA -1 Higher the control of corruption = higher the country GDP Per -2 Capita 204 Countries LOW -3 Source: The World Bank GDP Per Capita (PPP, logs) * At purchasing power parity Strengthening Public Financial  Management in Timor‐Leste 
  20. 20. = stabilityStrengthening Public Financial  Management in Timor‐Leste 
  21. 21. = investor confidence Strengthening Public Financial  Management in Timor‐Leste 
  22. 22. avoid theresource curse 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 workStrengthening Public Financial  25 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. rapidlyStrengthening Public Financial  Management in Timor‐Leste 
  29. 29. reviewTransparency and Accountability 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 Democratic Republic of Timor‐Leste Vision Strengthening Public Financial  Management in Timor‐Leste 
  30. 30. sequenced Strengthening Public Financial  Management in Timor‐Leste 
  31. 31. Public Financial Management – Foundation for Country Growth Public Financial ManagementDecentralization Human  GoTL LAWS Resource  Autonomous  FMIS Development Agencies (software and  hardware) Procurement  Capacity  Ministries Commission Building (Training) Strengthening Public Financial Management in Timor‐Leste 
  32. 32. Strengthening Public Financial  Management in Timor‐Leste 
  33. 33. 1. International Standards Strengthening Public Financial  Management in Timor‐Leste 
  34. 34. IPSASInternational 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. GFSGovernment Financial Statistics Strengthening Public Financial  Management in Timor‐Leste 
  37. 37. MTEF Medium Term  Expenditure FrameworksStrengthening Public Financial  Management in Timor‐Leste 
  38. 38. IATI International Aid  Transparency InitiativeStrengthening Public Financial  Management in Timor‐Leste 
  39. 39. 2. Manager’s Dashboard Strengthening Public Financial  Management in Timor‐Leste 
  40. 40. review examines budget execution data integration with  macro‐economic  data integrated with back‐office procurement & commitment  accounting within IFMIS Strengthening Public Financial Management in Timor‐Leste  40
  41. 41. 3. Document Management Strengthening Public Financial  Management in Timor‐Leste 
  42. 42. manages correspondence with  senior managers repository for freedom of information
  43. 43. 4. e‐Procurement  Portal Strengthening Public Financial  Management in Timor‐Leste 
  44. 44. review government tenders published vendor alerts integrated with back‐office  procurement & commitment  accounting within IFMIS tender results publishedStrengthening Public Financial Management in Timor‐Leste  44
  45. 45. 5. Transparency Portal Strengthening Public Financial  Management in Timor‐Leste 
  46. 46. reviewwww.transparency.gov.tl Strengthening Public Financial Management in Timor‐Leste  46
  47. 47. articles subscribe drill down
  48. 48. Expenditures, Transparency Portal 10 years of data drill through the chart of accounts
  49. 49. Expenditures, Transparency Portal export to xls, doc, pdf, html, xml track commitments
  50. 50. Lessons Learned Strengthening Public Financial  52 Management in Timor‐Leste 
  51. 51. 1. Leadership Strengthening Public Financial  Management in Timor‐Leste 
  52. 52. Goodbye Conflict, Welcome  DevelopmentTimor‐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 Prime Minister Xanana Gusmão Strengthening Public Financial  Management in Timor‐Leste 
  53. 53. 2. Learn from the mistakes of others Strengthening Public Financial  Management in Timor‐Leste 
  54. 54. Goodbye Conflict, Welcome  DevelopmentWhen 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 Minister of Finance Emilia Pires Strengthening Public Financial  Management in Timor‐Leste 
  55. 55. 3.  Transparency  is not an  OptionStrengthening Public Financial  Management in Timor‐Leste 
  56. 56. citizen  auditors YouTube Facebook Twitter SMSStrengthening Public Financial  Management in Timor‐Leste 
  57. 57. 4. Transparency = Performance > Embarrassment  Strengthening Public Financial  Management in Timor‐Leste 
  58. 58. Strengthening Public Financial  Management in Timor‐Leste 
  59. 59. Role of Civil Society• NGO’s can help organise literacy groups and provide materials.  They can provide private education and education for the blind.  They can provide schoolmaterials for students, and assist with school equipment chairs and books• NGO’s can help us organise and run technical training courses in our villages Timor‐Leste National Vision Strengthening Public Financial  Management in Timor‐Leste 
  60. 60. 5. Sequenced Holistic Multiple‐ Year PFM Strategy Strengthening Public Financial  Management in Timor‐Leste 
  61. 61. review Public Financial Management – Foundation for Country Growth Improve government performance Improve transparency & accountability Improve budget executionImprovegovernmentcapacity Strengthening Public Financial Management in Timor‐Leste 
  62. 62. 6. Build Capacity Strengthening Public Financial  Management in Timor‐Leste 
  63. 63. review PFM Modernization Alignment with Capacity Building• Training beyond  • Intuitive systems software – Translation including  – IT capacity terminology – Project management – Simple & goal‐oriented  – Government accounting interfaces• Beyond training • Mentoring – Adaptable help – E‐Learning – Knowledge management Strengthening Public Financial  Management in Timor‐Leste 
  64. 64. 7. Require Sustainability in Partner  Performance Strengthening Public Financial  Management in Timor‐Leste 
  65. 65. 8. Adopt International Standards Strengthening Public Financial  67 Management in Timor‐Leste 
  66. 66. 9. Leverage Open Systems Strengthening Public Financial  Management in Timor‐Leste 
  67. 67. Transition to Open Environment:  TransparencyDomain Closed Transition OpenTransparency Access to Information Document Machine Readable Do not Publish as Data Availability Data for Sale Publish as Exception Exception Publish, Audited &  Near Real‐Time Mode Mixed Vetted Publishing What are they going to do  Government as ROI Reason Revenue Generation with the data? Platform CitizensTarget Business Community Civil Society & Press
  68. 68. Transition to Open Systems:  TechnologyDomain Closed Transition Open Proprietary within  Support for Industry  Service Oriented Integration Suite Standards Architecture Proprietary =  Proprietary/Open Tactical  Open Standards = Middleware Customer Lock approach Customer Choice Open Systems reduce  Open Systems extend  Open Systems = Viewpoint system performance value Extensibility Need for vendor  Low Cost Application Extensibility High Costs Ecosystem Assembly
  69. 69. 10. Leapfrog is possible  Timor‐Leste United States Comparison GFS, IPSAS, EITI, IATI, 1. Standards ? Leaped MTEF2. Performance  Various tools across  Manager’s Dashboards To leapManagement government3. Document  Manager Document  Various Records &  Catching UpManagement Management Correspondence4. e‐Procurement August 15 FedBizOpps To leap Data.gov & others ‐ Leaping5. Transparency Transparency Portal underfunding Strengthening Public Financial  Management in Timor‐Leste 
  70. 70. www.revenuewatch.org Strengthening Public Financial  Management in Timor‐Leste 
  71. 71. How? Timor‐Leste United States 1 Year Budgets, complex Strategic Vision Holistic election cyclesGovernment Structure Unitary FederalCivil Society & Media Seen as Improving Results Seen as “Special Interests”Government Intervention Seen as Good Seen Suspiciously Ease to Move to International  Long History of Entrenched 1. Standards Standards National Standards2. Performance Management3. Document Management Single system data source Multiple entrenched systems4. e‐Procurement5. Transparency Strengthening Public Financial  Management in Timor‐Leste 
  72. 72. Links• Open Systems Enable Government Transparency  Leapfrog  http://www.freebalance.com/blog/?p=1559• E‐Government Transparency in Developing Countries  http://www.cutter.com/offers/egovt.html• Developing Countries can Leapfrog Developed  Countries in Government Transparency  http://tech.state.gov/profiles/blogs/how‐ developing‐countries‐are• More: dhadden@freebalance.com Strengthening Public Financial  74 Management in Timor‐Leste 
  73. 73. Goodbye Conflict, Welcome  Development Strengthening Public Financial  Management in Timor‐Leste 

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