THE ISODEC ECONOMIC LITERACY SERIES1
ISODEC EXPERIENCES ON ENGAGING ON SOCIAL ACCOUNTABILITY IN GHANA AND BEYONDOXFAM-NOVIB workshop(Bishop Akolgo-ISODEC-Ghana)
WHAT I WILL TALK ABOUTMy presentation will look at:1.Who ISODEC is, key advocacy goal2.Our engagement on budgets in Ghana and beyond3.How we do it4.Results of efforts so far5.Lessons learnt and challenges6.Future Perspectives
KEY POLICY AND ADVOCACY GOAL
“SECURE POLICY SPACE FOR CITIZENS TO ENGAGE THEIR GOVERNMENTS TO CONSTRUCT AUTONOMOUS DEVELOPMENT OF THEIR COUNTRIES INCLUDING SECURING THEIR RESOURCE BASE AND CHERISED VALUES” IN THE SUB-REGION
WHAT IS SOCIAL ACCOUNTABILITY?The right to Accountability links civil and
political rights to economic, social, and cultural ones. Citizens must have the right to call service providers to account.
Like participation and service quality, a needs-based approach sees accountability as a tool to improve efficiency, and therefore an option.
A rights-based approach makes accountability indispensable as the key mechanism for upholding people’s rights and the means by which they can be properly exercised.
FOUR KEY STRATEGIESCRITICAL ENGAGEMENT (IMF, WB, Bi-
laterals);EMPOWERING ENGAGEMENT (CSOs, some
governments, media, academia);STRATEGIC ENGAGEMENT (legislature, local
authorities);BRIDGING ENGAGEMENT (social science-
policy makers, academia-CSOs, CSOs-government, companies-CSOs, companies-academia).
FIVE MAIN PLATEFORMS/FORUMS
PUBLIC DEBATE;PUBLIC DISCUSSIONs;PUBLIC ARGUMENT; TRAINING WORKSHOPS, ANDRESEARCH/ANALYSIS/modelling
WHAT WE HAVE DONE SO FARPopularised Policy and Budgets Advocacy in Ghana
and the West African sub-regionTrained community activists to monitor extractives
and budgets in Ghana, Nigeria and ongoing in Sierra Leone
Produced training modules, along with ActionAid and NCAS of India in budgets, Rights-based Advocacy and Governance
Production and publication of an annual budget analysis
Prepared series of briefing papers on fiscal policy and budgets to Parliament and executive
1.PROCESSInput into budget formulation annuallyPre-budget statementPost budget reactionRegional forums and letter to G’mentDetailed budget analysis and publicationPolicy Briefs to Parliament, media and
CSOsTraining and support to stakeholdersPeriodic budget tracking, esp social
sector
TOOLS AND APPROACHES Annual Budget Forums (all ten regions of
Ghana)Annual budget Analysis and publicationsBudget tracking (Gender and Children)Budget Tracking (servicesBudget Tacking (education, health, water)Public Expenditure tracking Survey (PETS)Community Score CardsTax and Expenditure Incidence AnalysisBriefing and position papers
KEY FINDINGS OF TRACKINGPoor state of infrastructure affect transactions of the
poorTwo-tier social system: if you have money, buy private
health and education, if no money, stalk with public system
70-80% of health and education inputs do not reach facilities
The farther away a schools is from Accra, the less inputs it gets, the nearer, the more resources
The more “connections” the school has, the more resources it gets
Horizontal inequality of access to services and political authority:-north-south, rural-urban
Weak legislature given majority of ruling party
2.RESULTS OF OUR EFFORTSCSOs and public input into budget
formulationCSO interests in budget and policy work in
Ghana and other west African countriesWidely consulted on budgets and policy
issuesParticipation in Radio, TV and other media
appearances on fiscal policy and budgetsConsulted by government, bi-lateral and
multi-lateral institutions
3.LESSONS LEARNTNeed to combine service delivery with policy and people-
centred advocacy backed by credible research/analysisPolicy advocacy is ineffective without the budget But budget engagement is ineffective without the
macroeconomic framework that sets the limits;But macroeconomics is not enough without ways to
increase the national purse like Tax and extractives justice
No tax justice without tracking extractive resources from companies and government to service delivery
Need to mobilise and organise critical mass to build and sustain pressure on policy makers for change
Need to make specific demands for change on the system
4.CHALLENGES-BUDGETSHow to facilitate the accountability of government officials to elected reps and elected reps to their constituencies
How to build and retain research and analysis capacity for evidence-based advocacy
Linking research/analysis with human rights, academia and grassroots for critical mass
Attracting and retaining qualified staffHow to empower the legesilature
7.FUTURE PERSPECTIVESBuild a critical mass of activists in W.Africa Extend work in Ghana, Sierra Leone, Nigeria
and Burkina Faso to Mali, Senegal and NigerConduct a Trainer of trainer for budget, Tax
and extractives activists in all the seven countries
Complete the DEEP macroeconomic model project
Build simple to use macroeconomic models on and for monitoring revenues from extractives Project for each country/local authority
Expand/consolidate these efforts into a formal Fiscal Policy, Research and Training institute
THE BUDGET PROCESS
THE GENERIC BUDGET CYCLE
The Budget ProcessThe process begins in May and ends in November each year.Step I- Macro-Economic FrameworkThis involves the development of a macroeconomic framework which forecasts aggregates like GDP, Domestic Revenue and the availability of donor resources. It involves the Minister of State for Planning, the two Deputy Ministers of Finance, the Chief Director, the Director of Budget, the Research Division, Aid & Debt Management Unit (ADMU) (all of MFEP) Ghana Statistical Services, BoG, NDPC and the Revenue Agencies.Step II - Policy ReviewAt the same time as the macro framework is being prepared, MDAs undertake a review of their policies, objectives, outputs and outcomes in order to estimate their broad expenditure requirements. MDA policy review reports are submitted to MFEP and constitute the information base for the next step which is the cross-sectoral meetings.Step III - Cross-Sectoral MeetingsHere, clusters of related MDAs are brought together to discuss their policy review reports and identify areas of overlap and coordination among themselves. For each cluster, the Chief Director of an identified lead ministry or his representative chairs the meetings and is responsible for the production and presentation of the report to MFEP. This step takes place early in July. MFEP is represented the by unit responsible for MTEF.Step IV - Policy HearingsIn the latter part of July, policy hearings are held with MDA sector groups with a Deputy Minister of MFEP in the chair. The MDA policies and broad expenditure requirements are discussed in the light of the reports from the cross-sectoral meetings. Our information revealed that this stage is currently not being adhered to, having been squeezed out recently by time pressures and resulting in a loss of inter-MDA co-ordination. It may be restored in future.Step V - CeilingsThe policy hearing reports feed into the determination of the draft MDA expenditure ceilings allocation in terms of GoG resources, IGF and donor inflow. The approved ceilings are conveyed to MDAs as part of the guidelines for the preparation of the budget. The first year ceiling is firm while the two outer years are indicative only. This activity takes place in July/August.Step VI - Review of MDA Strategic Plans and BudgetAt this stage, MDAs review their strategic plans including outcomes and objectives and cost including critical activities.Step VII - Prioritization and Presentation of MDA Budget to MFEPMDAs prioritize their activities and prepare their estimates to fit into the ceilings for presentation to MFEP in September.Step VIII - Budget HearingsIn October, MFEP conducts budget hearings with each MDA to ensure that their estimates are within the ceilings and are consistent with their strategic plans.Step IX - Finalization and Approval of EstimatesMFEP submits MDA estimates to Cabinet and Parliament for approval. The deadline for submission to Parliament is 30th November.
Any consultations with non-government parties occurs outside the above formal processes. Consultation could occur at the Step IV stage but this is currently in abeyance. it is likely to become an established practice.
Constitutional Role of Parliament
Determine the strategic direction of policy (passes legislation)
Oversight over the executive in the implementation of that policy (holds the executive accountable for delivery on policy)
Parliament approves the budget
Parliament holds the executive accountable for the use of resources
Drafting Legislative Stage
Budget Execution
Audit Stage
LEGI
SLAT
IVE
POW
ERS
REPO
RTIN
G PO
WER
S•EXPENDITURE BILLS•REVENUE BILLS
•Parliament can pose questions to departments
•Report of the Auditor General
Strategic direction of policy Oversight and accountability
•LEGISLATION THAT CONTROLS BUDGET FORMATS AND PROCESSES
•LEGISLATION THAT CONTROLS BUDGET EXECUTION through the assignment of accountability
•Parliament can ask questions about the purpose of allocations