The development of a spending review methodology in a developing country context

This article discusses the spending review methodology developed in the South African government. A typical spending review combines a deep institutional and policy evaluation with extensive expenditure analysis and cost modelling. The article discusses how, in the context of a developing country, the spending review methodology had to adapt to local conditions, such as constraints around political and institutional autonomy and cooperation, the skills level of government officials, data availability and communication around a reform agenda. The article outlines how, in responding to these challenges, the South African spending review methodology developed a six step modularised approach that standardised the methodology and provided clear guidance to civil servants, consultants and political leadership. This has allowed a sophisticated analytical process to be widely adopted in the public sector and could be of methodological value to developed and developing countries alike.