What is Participatory Budgeting?

 

Participatory budgeting (PB) is a democratic process in which community members directly decide how to spend part of a public budget. Most examples involve city governments that have opened up decisions around municipal budgets, such as overall priorities and choice of new investments, to citizen assemblies. In other cases, states, counties, schools, universities, housing authorities, and coalitions of community groups have used participatory budgeting to open up spending decisions to democratic participation.

How does it work?

Community members make budget decisions through an annual series of local assemblies and meetings. Although there are many models of participatory budgeting, most follow a basic process: diagnosis, discussion, decision-making, implementation, and monitoring.

• Residents identify local priority needs, generate ideas to respond to these needs, and choose budget representatives for each community.
  
• These representatives discuss the local priorities and develop concrete projects that address them, together with experts.
  
• Residents vote for which of these projects to fund.
  
• The government implements the chosen projects.
  
• Residents monitor the implementation of budget projects.
  

For example, if residents identify recreation spaces as a priority, their budget representatives might develop a proposal for a new basketball court. The residents would then vote on this and other proposals, and if they approve the basketball court, the city pays to build it.

 

Where has it worked?

The Brazilian city of Porto Alegre started the first full PB process in 1989, for the municipal budget. In Porto Alegre, as many as 50,000 people have participated each year, to decide as much as 20% of the city budget. Since 1989, PB has spread to over 1,200 cities in Latin America, North America, Asia, Africa, and Europe. In the US and Canada, this includes PB processes in Toronto, Montreal, Guelph, and Chicago.

 

What are the benefits?

Elected officials, community organizations, academics, and international institutions such as the United Nations and World Bank have declared PB a model for democratic government. Why?

 

• Gives community members a say
  Ordinary people have more voice – and they get to make real decisions.

 

• Makes for better and more equitable decisions
  Local residents know best what they need, and budget dollars are redistributed to communities with the greatest needs.

 

• Develops active and democratic citizens
  Community members, staff, and officials learn democracy by doing it. They gain more understanding of complex political issues and community needs.

 

• Builds communities and strengthens community organizations
  People get to know their neighbors and feel more connected to their city. Local organizations get to spend less time lobbying, and more time deciding policies themselves. Budget assemblies connect groups and attract new members.

 

• Connects politicians and constituents
  Politicians build closer relationships with their constituents. Community members get to know their elected officials and local governments.

 

• Makes government more accountable and efficient
  When community members decide spending in public assemblies, there are fewer opportunities for corruption, waste, or costly public backlash.