Pitfalls of Contracting for Policy Advice: Preparing Performance Budgeting Reform in Estonia

Abstract

The goal of this article is to analyze the challenges involved in contracting for policy advice with the example of performance budgeting reform in Estonia in 2009–2011. The Estonian Ministry of Finance has sought to prepare a major change in the budgeting system by outsourcing the analytical preparation of different aspects of the reform to various private sector organizations. The case study seeks to identify the challenges and pitfalls involved in contracting for policy and management advice in the area of a major public sector reform. The Estonian experience shows that such a reform strategy can run into serious problems, including fragmented and inconsistent reform plan, limited learning, and high transaction costs. The contractualization of reform preparation has constrained deliberations on the planned changes to the strategic planning and budgeting system among the stakeholders and undermined the democratic legitimacy of the reform.

The Use of Performance Information in Budgetary Decision‐making by Legislators: Is Estonia Any Different?

“…In 2008 the MoF put forth a Concept Paper for financial management reform (Estonian Ministry of Finance 2008), which envisions the implementation of a programme‐based performance budgeting system, which would introduce stronger links between strategic planning and budgeting and also entail a change of budget format from input‐based line items to results‐based structure. The MoF has undertaken preparatory steps towards this reform, but so far the general idea of the reform has not been consulted with the legislative body (see Raudla 2012b). It is also important to note that the explanatory note of the draft budget for 2011, submitted to the legislature, did not include PI any more.…”

Catching a Second Wave: Context and Compatibility in Advisory System Dynamics

“…Policy advice continues to occupy a prized position in public management and policy. As fields of study and practice both retain a keen interest in understanding the nature and function of policy advice within the public sector (Di Francesco, ; Raudla, ; Scott & Baehler, ). The study of policy advice has evolved from an initial emphasis on individual professional public service analysts (Jenkins‐Smith, ; Meltsner, ) to examinations of the “policy advisory systems”; that is, to the interlocking set of actors and organizations, with a unique configuration in each sector and jurisdiction, that provides recommendations for action to policymakers (Halligan, ; Seymour‐Ure, ).…”

The role of chief executive tenure for public organizations' hiring of management consultants

“…First, we contribute to the theorizing of the use of MCS in GAs (Howlett & Migone, 2013;Raudla, 2013;Saint-Martin, 2012;Ylönen & Kuusela, 2018). Previous studies have called for further investigations into the antecedents of the use of MCS on the level of the GA (e.g., Ylönen & Kuusela, 2018).…”