Building Transparency and Citizen Participation in Participatory Budgeting Processes in the Province of Ilo in Southern Peru

Municipalidad Provincial de Ilo
The Pitch

The Provincial Municipality of Ilo (Municipalidad Provincial de Ilo) improved government accountability by designing a participatory budgeting process. In this model, citizens are decision-makers in the budgeting process, designate funds to sustainable development projects and monitor project implementation. 

The Problem

A lack of government accountability to keep promises to citizens is a pervasive issue in many parts of the world. When citizens don’t have a say in how the local government’s budget is being used, their needs often go unmet. 

The Process
  • Held two pilot programs to test the use of a participatory budget
  • Began Ilo’s participatory budget in 1999 by passing Municipal Ordinance 145-2001-MPI
  • Wrote their Sustainable Development Plan in alignment with the participatory budget (the Sustainable Development Plan describes which projects in the budget are of priority)
  • Required half of delegates who monitor the budget to be female 
The Impact
  • Allows all citizens to participate in the budget, meaning that diverse interests are represented in determining where the city should invest its resources
  • Commits the government to address residents’ needs by making residents a major stakeholder in city projects: The community provides about 30% of the value of public improvement projects
  • Ensures that the mayor and officials are held accountable by the delegates of the budget: A citizen board monitors project progress and reports on what actions have been taken
  • Increased women’s participation in the budgeting and project development process, providing them with an avenue to advocate for their needs