Implementing Performance Management Principles and Procedures in the Russian Federation: Interim Results and Further Development Priorities

Over the past few decades OECD countries have made significant efforts to introduce performance management principles in public administration context so as to promote increasing government efficiency and effectiveness in response to growing public demands and existing fiscal constraints. Recent public administration reforms in Russia also have an important focus on performance management issues; however, the approach that developed itself in the Russian Federation is more controversial and presents a compromise of positions and visions of core government agencies in charge of the reform. In late 2006, an independent group of experts attempted to combine the existing requirements and plans and develop a joint Road Map for Implementing Performance Management Mechanisms in the Russian Public Sector in 2007 - 2010. The Road Map was presented to the key stakeholders at the federal and also regional level in December 2006 and has since then become an informal point of reference for developing performance management agenda. The article presents continuation of this effort and attempts to evaluate the interim results achieved in implementing performance management principles in Russia. The review of achievements also allows to highlight the development priorities for the next two and a half years of public administration reform. The results of this analysis are summarized in an updated Road Map for Implementing Performance Management Mechanisms in the Russian Public Sector. Overall, the author argues that for the last year and a half significant progress has been achieved in implementing performance management principles in the Russian public administration: there has been some progress made in 16 out of 27 areas outlined in the 2006 Road Map. Notable achievements have been made in terms of implementing medium term budgeting, introducing some performance information in budget expenditure planning documents, implementing requirements to financial management quality at the federal level. Development and approval of instruments allowing for cross-regional comparisons and evaluation of regional and local administrations efficiency and effectiveness provided a basis for further regional development planning and supporting performance management practices in the multi-level governance context. Some departmental and regional performance management systems developed and implemented on a pilot basis also provide important lessons learned for the further reform efforts. Overall, the recent review of performance management progress at the regional level revealed significant attention to the matter and considerable achievements in introducing core performance management instruments on the ground. Last but not least, expanding the use of programs in the public sector is also an important trend strengthening accountability for the use of public resources and achievement of performance outcomes. While commending to the progress made, the article also highlights the unfinished reform agenda which should receive more attention in the years to come. Firstly, as the practice of implementation has confirmed and given the complexity of the Russian governance system, there is a need to develop and approve a special document laying out the conceptual framework for implementing performance management in Russia. This concept could, inter alia, streamline the existing system of forecasting, planning and performance management documents existing at various government levels. Secondly, gradually more autonomy should be provided to program managers at the medium level to achieve the program outcomes. Such autonomy calls for inter alia, introduction of management accounting, adoption of performance planning and evaluation systems at the individual level, etc. Finally, it is crucial to invest in transparent monitoring and evaluation systems that could warrant the overall coherence and credibility of performance management efforts. The article concludes that the key effect from implementing performance management in the public sector comes from the change in internal incentives. Such change cannot be implemented overnight and requires several years - if not decades. However, such change is crucial for improving efficiency and effectiveness of the public sector and - hence - supporting sustainable socio-economic development in Russia in the longer term.