2011 04-29 government financial transparency in timor-leste
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Strengthening Public Financial Management through Transparency in Timor-Leste
http://transparencycamp.org/sessions/46/
Transparency Camp April 30, 2011
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Confusion?
Strengthening Public Financial Management in Timor-Leste 2
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Strengthening Public Financial Management in Timor-Leste 3
Congress cuts transparency funding
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How can Timor-Leste afford government transparency?
Strengthening Public Financial Management in Timor-Leste 4
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%
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globalization
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= competition
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choice
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citizens are watchingStrengthening Public Financial Management in Timor-Leste 8
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empowered
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Democratic Republic of Timor-Leste
(RDTL)Transparency
Objectives
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Strengthening Public Financial Management in Timor-Leste 11
build civil society
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build infrastructure
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build capacity
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build citizen involvement in government
Strengthening Public Financial Management in Timor-Leste 14
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improve government performance
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GDP Per Capita (PPP, logs)
UG
AN
DA
PA
PU
A N
EW
GU
INEA
AU
ST
RA
LIA
-3
-2
-1
0
1
2
3
209 Countries
Norm
aliz
ed G
overn
ment
Eff
ect
iveness
Index
HIGH
LOW
Benefits of Transparency Government Effectiveness and GDP*
* At purchasing power parity
Source: The World Bank
Higher the government effectiveness = higher the country GDP Per Capita
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GDP Per Capita (PPP, logs)
UG
AN
DA
PA
PU
A N
EW
GU
INEA A
US
TR
ALI
A
-3
-2
-1
0
1
2
3
207 Countries
Norm
aliz
ed
Voic
e a
nd
Acc
ounta
bili
ty Ind
ex
.
HIGH
LOW
Benefits of Transparency Voice and Accountability and GDP*
* At purchasing power parity
Source: The World Bank
Higher the government accountability = higher the country GDP Per Capita
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GDP Per Capita (PPP, logs)
UG
AN
DA
PA
PU
A N
EW
GU
INE
A
AU
ST
RA
LIA
-3
-2
-1
0
1
2
3
204 Countries
Norm
aliz
ed C
ontr
ol of
Corr
upti
on Index
HIGH
LOW
Benefits of TransparencyControl of Corruption and GDP*
* At purchasing power parity
Source: The World Bank
Higher the control of corruption = higher the country GDP Per Capita
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= stability
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= investor confidenceStrengthening Public Financial Management in Timor-Leste 21
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avoid theresource curse
l
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technology leapfrog
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use what works
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skip what doesn’t work
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skip stages
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modernize
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rapidly
Strengthening Public Financial Management in Timor-Leste 28
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review
Transparency and Accountability
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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
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staged
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Strengthening Public Financial Management in Timor-Leste 31
Public Financial Management – Foundation for Country Growth
FMIS(software and
hardware)
Human Resource
Development
Capacity Building
(Training)
GoTL LAWS
Procurement Commission
Autonomous Agencies
Ministries
Decentralization
Public Financial Management
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1. International StandardsStrengthening Public Financial Management in Timor-Leste 33
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IPSASInternational Public Sector Accounting
Standards
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EITIExtractive Industries
Transparency Initiative
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GFSGovernment Financial Statistics
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MTEFMedium Term
Expenditure Frameworks
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IATIInternational Aid
Transparency Initiative
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2. Manager’s Dashboard
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review
Strengthening Public Financial Management in Timor-Leste 40
examines budget execution data
integration with macro-economic data
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3. Document Management
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Strengthening Public Financial Management in Timor-Leste 42
manages correspondence with
senior managers
repository for freedom on information
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4. e-Procurement Portal
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review
Strengthening Public Financial Management in Timor-Leste 44
government tenders published
vendor alerts
tender results published
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5. Transparency Portal
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review
Strengthening Public Financial Management in Timor-Leste 46
10 years of budget & financial data
www.transparency.gov.tl
drill down through the chart of accounts
output in RTF, Word, Excel, PDF, Text, XML,
HTML
http://www.transparency.gov.tl
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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
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
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Benchmark
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Timor-Leste United States Comparison
1. Standards GFS, IPSAS, EITI, IATI, MTEF ? Leaped
2. Performance Management Manager’s Dashboards Various tools across
government To leap
3. Document Management
Manager Document Management
Various Records & Correspondence Catching Up
4. e-Procurement August 15 FedBizOpps To leap
5. Transparency Transparency Portal Data.gov & others - underfunding
Leaping
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www.revenuewatch.org
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another transparency comparison thanks to Jed Miller at Revenue Watch
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www.freebalance.com/blog
@freebalanceStrengthening Public Financial Management in Timor-Leste 50