Collaborative and deliberative governance in the implementation of fiscal responsibility policies

Fiscal responsibility policies recommended for developing countries typically reflect best practices identified through theoretical and empirical insights on initiatives undertaken in other jurisdictions. Technocrats and... [ view full abstract ]

Fiscal responsibility policies recommended for developing countries typically reflect best practices identified through theoretical and empirical insights on initiatives undertaken in other jurisdictions. Technocrats and experts in multilateral lending agencies push such policies in a complex process based on both top down directives and negotiated agreements. It is well-recognized that the incorporation of inputs from a broad range of stakeholders through deliberation and collaboration can improve both decision making on and the implementation of policies (governance), however decision-making in PFM typically privileges the inputs of experts and technocrats. Jamaica‚ a small developing country with a strong tradition as a representative democracy has made concerted efforts to improve its public financial management practices and fiscal responsibility (FR) in particular‚ at the behest of its international lenders. While the design and implementation of the FR policies can best be described as following the traditional or classical modernist approach where decisions are left to the elected and appointed representatives‚ several initiatives to increase FR require the inputs and collaboration of stakeholders to enhance the potential for success. This paper explores deliberation and collaboration in two groups comprising public, private, and civil society representation to provide both oversight and recommendations on policy design and implementation of fiscal responsibility reforms. The study finds that the process contributed several benefits to the policy process and to governance in general including openness, transparency, and acceptability of policy prescriptions. Importantly it changed the trajectory of relationships reducing the level of confrontation and increased trust among different groups and facilitated the design and implementation of difficult policy choices needed for increased fiscal responsibility. While direct broad-based participation may not be possible, an intentional  step-wise approach in which deliberations include the deconstruction of highly technical information has the potential to deepen the process, albeit indirectly.