Community-Led Financial Management for Enhanced Community Well-being
In 2024, the United Nations Development Programme (UNDP) in Kazakhstan, with financial support from the Ministry of Economy, kick-started the regional program Sustainable Development: Overcoming Local Disparities in the New Regions of Abai and Ulytau. This game-changing initiative aims to tackle regional development disparities, enhance the quality of life for the locals, and provide support for achieving the Sustainable Development Goals (SDGs) in these regions.
One crucial aspect of this program has been the introduction of pilot participatory budgeting (PB) projects in the local districts and villages. This first-time application of the PB mechanism at the grassroots level presents an opportunity for boosting the transparency of local budgets, increasing inclusivity, and precisely addressing the needs of the population. The recent enactment of the Budget Code has created an open door for the PB mechanism to come into its legal own, transforming it from a voluntary practice into an integral part of the budget system.
Since 2014, the PB mechanism has been governed by the legal framework, with the Order of the Minister of Finance on the Approval of the Rules for the Development of Local Budget Projects paving the way for its gradual implementation in large cities like Astana and Almaty. Today, the mechanism is in action in nearly all cities with populations exceeding 10,000. However, its full potential remains untapped, as it has yet to be employed at the district and rural levels—where it can yield maximal impact on the socio-economic development of sparsely populated areas.
Clearly, in such localities, participatory budgeting can serve as a powerful tool for identifying community priorities and improving the quality of life through the direct participation of citizens in allocating budgetary resources. Consequently, within the framework of the Regional Program in Abai and Ulytau regions, UNDP has prioritized supporting local executive bodies in this endeavor. Alongside the community, initiatives aim to develop social infrastructure, increase access to green technologies, and enhance community well-being.
To ensure the highest efficiency in implementing the PB mechanism, UNDP offers training sessions for local executive and representative bodies, as well as non-governmental organizations. Armed with a deeper understanding of the importance of this mechanism, they can engage more effectively in public decision-making processes geared towards sustainable regional development.
Information and awareness-raising efforts about the benefits of participating in the budget process are critical to ensuring successful integration of this mechanism into the interbudgetary relations system. Citizen participation, responsible attitudes towards public resources, and strengthened interaction between society and government institutions are essential outcomes of these efforts.
Vital to the success of PB is for citizens not just to understand the importance of submitting proposals but also the need for objective discussion and subsequent public oversight. As the PB mechanism continues to evolve and gain ground in Kazakhstan, it will be essential to ensure its comprehensive implementation at all levels of budget planning, focusing on expanding digital platforms for the PB in rural areas, organizing public consultations, and increasing the share of local budgets allocated to initiatives that support the achievement of the SDGs (such as green energy development, social inclusion, and climate resilience).
These current UNDP pilot projects on introducing PB in districts and villages can serve as stepping stones for developing a phased methodology for local-level implementation. They also offer insights into the scaling of successful practices and the formation of unified approaches and regulations. By relaunching and gradually expanding the rollout of this mechanism, the government can wield it as a powerful tool to complement ongoing efforts aimed at enhancing living standards and achieving the SDGs by 2030.
This article is authored by Katarzyna Wawiernia, UNDP Resident Representative in Kazakhstan.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the position of The Astana Times.
The Gist:
Participatory budgeting, introduced in the Abai and Ulytau regions of Kazakhstan, can prove instrumental in eliminating regional development disparities, increasing quality of life, and supporting the achievement of the Sustainable Development Goals. Here's why:
- Addressing Regional Development Imbalances: By involving citizens in budgeting decisions, resources can be more effectively targeted towards specific regional needs.
- Enhancing Transparency and Accountability: Participatory budgeting contributes to transparency and accountability, reducing the likelihood of corruption and ensuring efficient use of public funds.
- Empowering Communities: By giving communities a voice in budgeting decisions, their needs are more likely to be met, leading to improved living conditions and services.
- Economic Opportunities: Participatory budgeting can create jobs, stimulate local economies, and provide employment opportunities.
- Achieving the Sustainable Development Goals: Participatory budgeting is an effective tool for ensuring that infrastructure investments are sustainable, support community priorities, and contribute to strong institutions, peace, and sustainable development.
- In the Abai and Ulytau regions of Kazakhstan, the UNDP's regional program, Sustainable Development: Overcoming Local Disparities, has implemented participatory budgeting (PB) to address regional development disparities and enable the efficient allocation of resources.
- The PB mechanism, now governed by the Budget Code, is transforming from a voluntary practice into an integral part of the budget system, thereby increasing transparency, inclusivity, and the precision of addressing local needs.
- To ensure the highest efficiency, UNDP offers training sessions for local executive and representative bodies, NGOs, and the public, enabling them to understand the importance of PB and engage effectively in decision-making processes for sustainable regional development.
- Citizen participation, objective discussion, and public oversight are crucial elements in successful PB implementation, which can lead to the identification of community priorities, improvement in quality of life, and strengthened interaction between society and government institutions.
- Continuous development, scaling, and comprehensive implementation of the PB mechanism, focusing on rural areas, digital platforms, public consultations, and SDG-supporting initiatives, can serve as a powerful tool for the government to complement ongoing efforts aimed at enhancing living standards and achieving the SDGs by 2030.
