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Budget

The things we do: The economic, social, and personal costs of optimism

Roxanne Bauer's picture

Construction worker for the Panama Canal expansion projectIt is now the second week of 2016 and many people are working (or struggling) to follow through on their New Year’s resolutions. Whether they have decided to run a marathon, travel more, or save money, many people endeavor to create positive, new habits while shedding existing habits they think are less positive.  These resolutions, though, tend to last one or two months, fading into the backgrounds of their consciousness as spring arrives. 
 
It’s a typical combination of the planning fallacy, unrealistic optimism, and a bit of self-regulatory failure.
 
And this sort of challenge is not specific to New Year’s resolutions or even to issues pertaining to individuals.  City councils frequently draw up budgets that are too lean, road construction frequently lasts much longer than expected, and advances in technology often require much more investment than planners expect. So what’s at work here?  Why is it that people have a hard time judging the amount of time, energy, and resources that a project will take?

Expanding Budget Literacy in Nepal

Deepa Rai's picture

In mid-July, when the Government of Nepal’s FY15 budget was announced live on TV, radio and social media, most Nepalis were keen to watch the latest game of the World Cup. However, in a country with a literacy rate of only 57%, where almost half of Nepalis can neither read nor write, analyzing complex GoN budgetary information would not have been their priority. The World Bank’s Program for Accountability in Nepal (PRAN), however, is hoping to change that and educate people how the GoN budget affects their lives.
 
PRAN, together with Institute for Governance and Development (IGD), has recently developed ready-to-use, neo-literate flip charts outlining the importance of the government budget, its priorities, and its processes. These new IEC materials have been officially approved by the Government of Nepal for use nationally. Used effectively, they can help Nepali citizens become much more aware of what is rightfully theirs.  
 
Since 2011, PRAN has promoted increased social accountability and transparency in Nepal. PRAN seeks to educate communities about their local budget process and content.  As part of this effort, these new flip charts will serve as an awareness-raising tool by offering a detailed visual explanation of how the budget is designed, reviewed and approved.