La Follette School Director Don Moynihan on February 1 gave a presentation about his book Toward Next-Generation Performance Budgeting, to a group of World Bank Group officials in Washington, D.C. In his book with Ivor Beazley, Moynihan analyzes the difficulties that national governments have experienced in linking measurement of performance and results to the annual budget process.
“A next-generation approach to (performance budgeting) should acknowledge that not only are the transaction costs of such systems significant, they often result in a checklist mentality,” they wrote in a blog on the World Bank’s website. “A more targeted approach can both reduce administrative costs and make performance data more useful.
“Attention also needs to shift from creating a new set of rules and formats for performance budgeting to instilling routines whereby performance information is used regularly as part of program management, thus instilling a ‘performance culture’ in government,” they wrote.
The World Bank Group is a vital source of financial and technical assistance to developing countries around the world. It comprises five organizations managed by their member countries.
In their book, Moynihan and Beazley provide case studies of the performance-budgeting approaches taken by seven countries, including the United States, and offer 10 common challenges for adopting or updating a performance budgeting system. The World Bank initiated the study in response to budget officials in Eastern Europe and Central Asia. Beazley is a lead public sector specialist at the World Bank.