Performance Budgeting in Argentina: First Steps

1
Performance Budgeting in ArgentinaFirst Steps

• Bill Dorotinsky
• November 2000

2
Elements

• Two separate projects
• Performance Agreements
• formerly lead in Economy, now Jefetura de
  Gabinete
• focus on changing agency management
• Program Evaluation
• lead by MECON
• focus on gathering output data

3
Performance Agreements

• 3-levels of Agreements
• Minimum Standards
• develop mission statement,
• identify major objectives,
• align current activities with objectives,
• align budget with activities,
• develop indicators for activities,
• set performance targets for activities,
• develop work plan for implementing
• Organizational Self-evaluation
• minimum standards plus benchmark performance
  levels per activity
• Organizational Reinvention
• Organizational self-evaluation standards plus
  reorganization

4
Experience

• Started in late 1998
• Piloted in 5 small agencies
• Will sign first agreement next month
• Changes in organization of project, leadership
  slowed developments
• Unclear incentives
• New law requires agreements for all agencies

5
Program Evaluation

• Gathering performance information
• Combining financial and physical performance
• publishing quarterly reports of activities and
  budget execution
• working on basic proportional measures
• output per staff
• cost per output

6
Problems encountered in both projects

• In implementation
• Data integrity
• Incentives for agency participation
• Limited line Ministry staff capacity and
  resources
• ADP
• Staff - available and skilled
• Over-all
• Leadership and support
• Ultimate use of data for decisions

7
Strengths and Weaknesses

• Strengths
• gradualist approach (start small, pilot test)
• work with line ministries to change management,
  business processes
• at least in pilot stage, one-on-one attention to
  each agency
• recognizing capacity limitations
• Weaknesses
• sponsorship engine of reform
• use of information, results