2011-05-17 Government Financial Transparency in Timor-Leste

Strengthening Public Financial Management
through Transparency in Timor‐Leste
International Consortium on Governmental
Financial Management
May 17, 2011
Confusion?
Strengthening Public Financial
2
Management in Timor‐Leste
Congress cuts transparency funding
How can Timor‐Leste afford
government transparency?
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%
4
globalization
= competition
choice
citizens are watching
empowered
Democratic
Republic of
Timor‐Leste
(RDTL)
Transparency
Objectives
10
build civil society
build infrastructure
build capacity
build citizen involvement
in government
improve government performance
3
Benefits of Transparency
AUSTRALIA
HIGH
2
Government Effectiveness and GDP*
Normalized Government Effectiveness Index
PAPUA NEW GUINEA

UGANDA
-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

3
HIGH
Voice and Accountability and GDP*
AUSTRALIA
2
Normalized Voice and Accountability Index
PAPUA NEW GUINEA

1
UGANDA
-1
Higher the government accountability

-2 = higher the country GDP Per Capita
LOW 207 Countries

.
-3 Source: The World Bank

3
AUSTRALIA
HIGH
2
Control of Corruption and GDP*
Normalized Control of Corruption Index
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


= stability
= investor confidence
avoid the
resource curse
technology leapfrog
use what works
skip what
doesn’t work
25
skip stages
modernize
rapidly
review
Transparency 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
sequenced
Public Financial Management –
Foundation for Country Growth
Public Financial Management
Decentralization
Human
GoTL LAWS Resource
Autonomous FMIS Development
Agencies (software and
hardware)
Procurement Capacity
Ministries Commission Building
(Training)
Strengthening Public Financial Management in Timor‐Leste
1. International Standards
IPSAS
International Public Sector Accounting
Standards
EITI
Extractive
Industries
Transparency
Initiative
GFS
Government Financial Statistics
MTEF
Medium Term
Expenditure Frameworks
IATI
International Aid
Transparency Initiative
2. Manager’s Dashboard
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
3. Document Management
manages
correspondence with
senior managers
repository for freedom of information
4. e‐Procurement
Portal
review
government tenders published
vendor alerts
integrated with back‐office
procurement & commitment
accounting within IFMIS
tender results published
5. Transparency Portal
review
www.transparency.gov.tl
articles
subscribe
drill down
Expenditures, Transparency Portal
10 years of data
drill through the chart of accounts
Expenditures, Transparency Portal
export to xls, doc, pdf, html, xml
track commitments
Lessons Learned
52
1. Leadership
Goodbye Conflict, Welcome
Development
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
Prime Minister Xanana Gusmão
2. Learn from the mistakes of others
Development
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
Minister of Finance Emilia Pires
3.
Transparency
is not an
Option
citizen
auditors
YouTube
Facebook
Twitter
SMS
4. Transparency =
Performance > Embarrassment
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 school
materials 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
5. Sequenced Holistic Multiple‐
Year PFM Strategy
review
Public Financial Management –
Foundation for Country Growth
Improve
government
performance
Improve
transparency
&
accountability
Improve
budget
execution
Improve
government
capacity
Strengthening Public Financial Management in Timor‐Leste
6. Build Capacity
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
7. Require Sustainability in Partner
Performance
8. Adopt International Standards
67
9. Leverage Open Systems
Transition to Open Environment:
Transparency
Domain Closed Transition Open
Transparency 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
Citizens
Target Business Community Civil Society & Press
Transition to Open Systems:
Technology
Domain 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
10. Leapfrog is possible
Timor‐Leste United States Comparison

GFS, IPSAS, EITI, IATI,
1. Standards ? Leaped
MTEF
2. Performance Various tools across
Manager’s Dashboards To leap
Management government
3. Document Manager Document Various Records &
Catching Up
Management Management Correspondence
4. e‐Procurement August 15 FedBizOpps To leap
Data.gov & others ‐ Leaping
5. Transparency Transparency Portal
underfunding
www.revenuewatch.org
How?
Timor‐Leste United States
1 Year Budgets, complex
Strategic Vision Holistic
election cycles
Government Structure Unitary Federal
Civil 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 Standards
2. Performance Management
3. Document Management
Single system data source Multiple entrenched systems
4. e‐Procurement
5. Transparency
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
74
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2011-05-17 Government Financial Transparency in Timor-Leste

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Strengthening Public Financial Management

PAPUA NEW GUINEA

Higher the government effectiveness

LOW 209 Countries

* At purchasing power parity

PAPUA NEW GUINEA

Higher the government accountability

LOW 207 Countries

* At purchasing power parity

PAPUA NEW GUINEA

Higher the control of corruption

-3 Source: The World Bank

* At purchasing power parity

Timor‐Leste United States Comparison

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