Participatory Budgeting

How citizens can directly decide how part of a public budget is spent, starting in Porto Alegre, Brazil, and what evidence shows about its effects.

In most places, elected officials decide how public money is spent. In participatory budgeting, ordinary citizens directly decide how to spend part of a public budget.

Origins in Porto Alegre

Participatory budgeting began in 1989 in Porto Alegre, a city in southern Brazil. Residents met in neighbourhood assemblies to identify needs, such as paving roads, sewage, health clinics and schools, and elected delegates to negotiate priorities. A formula gave more resources to poorer areas with greater needs.

How it works

Processes vary, but typically:

Residents propose ideas in public meetings or online.
Volunteers or delegates develop proposals into projects with cost estimates.
Residents vote on which projects to fund.
The government implements winning projects and reports on progress.

Spread worldwide

Participatory budgeting has spread to thousands of cities around the world, including in Europe, North America, Africa and Asia. In India, Pune began a participatory budgeting process in the mid-2000s, allowing citizens to propose local works.

Evidence

Research on Brazil found that cities adopting participatory budgeting increased spending on sanitation and health, and some studies linked it to reductions in infant mortality. Other benefits include:

Greater transparency and reduced corruption.
Civic engagement, especially among poorer residents.
Better matching of spending to local needs.

Challenges include low participation in some places, domination by more organised groups, the small share of budgets usually involved and the time required.

A neighbourhood's choice

A city sets aside a portion of its budget for participatory budgeting. In one neighbourhood, residents propose a new streetlight system, a park upgrade and accessible pedestrian crossings with audio signals. After discussion, they vote to fund the crossings and streetlights. Residents, including blind pedestrians who advocated for audio signals, see their priorities funded directly.

Thinking participatory budgeting replaces elected officials

Participatory budgeting usually covers only a small part of a public budget, and elected governments still make most spending decisions. It supplements representative democracy rather than replacing it.

Key takeaways

Participatory budgeting lets citizens directly decide how part of a budget is spent.
It began in Porto Alegre, Brazil, in 1989 and spread to thousands of cities.
Evidence from Brazil links it to more sanitation and health spending and lower infant mortality.
Participation levels and small budget shares are common challenges.