Introduction
Participatory budgeting (PB) is one of the most widespread and successful tools of modern civic participation. First implemented in Porto Alegre, Brazil, in the late 1980s, it has since spread to hundreds of cities around the world. Its strength lies in its simplicity: giving citizens the opportunity to decide how to allocate part of the public budget.
👉 We have already seen in participatory budgeting in Italian municipalities how this methodology has improved transparency and efficiency in decision-making. In this article, we explain in detail what participatory budgeting is, how it works, and why it is considered a key tool for inclusive decision-making processes.
1. Definition of participatory budgeting
Participatory budgeting (PB) is a democratic process through which citizens decide how to spend a portion of the public budget. It usually applies to local investments (schools, roads, parks, social services), but in some cases it has also been adopted at regional or even national levels.
Main characteristics:
- directly involves citizens,
- focuses on the distribution of real financial resources,
- requires transparency and accountability in the implementation of choices.
2. Historical origins and global spread
The first PB experiment dates back to 1989 in Porto Alegre, Brazil, where it was introduced to reduce inequality and corruption. Citizens gathered in neighborhood assemblies, proposed priorities, and voted on projects to be financed with part of the municipal budget.
The model was so successful that it spread throughout Latin America, Europe, and later Asia and Africa. Today, it is recognized by organizations such as the OECD and the International Observatory on Participatory Democracy (OIDP) as one of the most consolidated practices of participatory democracy.
👉 For international comparisons, see Global Experiments in Participatory Budgeting: Lessons from Around the World.
3. How participatory budgeting works
Although each city adapts the model to its own context, PB generally unfolds in four main phases:
a) Information and launch
The local government communicates the share of the budget allocated to PB and the rules of participation. Clear communication is crucial to build trust.
b) Proposal collection
Citizens submit ideas or projects, individually or through associations. This can be done via public meetings, online platforms, or a combination of both.
👉 At this stage, digital tools such as online participatory platforms play a central role, making it easier to submit, comment on, and debate ideas.
c) Discussion and evaluation
Proposals are discussed, refined, and evaluated by both citizens and experts. This stage is delicate because it must reconcile popular needs with technical feasibility.
d) Voting and implementation
Citizens vote on the shortlisted projects, and the government commits to implementing those that receive the most support. The results are public and traceable.
4. Advantages of participatory budgeting
Participatory budgeting is not just a democratic exercise; it produces concrete outcomes:
- Transparency: citizens can clearly see how public money is spent.
- Inclusion: marginalized groups find a space for their voices to be heard.
- Efficiency: selected projects respond better to real community needs.
- Trust: strengthens the legitimacy of institutions and reduces social conflict.
👉 As highlighted in our article on blockchain and transparent voting, innovative technologies can further strengthen these benefits.
5. Exemplary cases in Italy and worldwide
- Porto Alegre (Brazil): the original model, still active after more than 30 years.
- New York City (USA): since 2011, PB has been applied in several districts with millions of dollars managed by citizens.
- Paris (France): allocates about 5% of its municipal budget (over €100 million annually) to PB.
- Helsinki (Finland): through the OmaStadi project, citizens decide each year how to invest €8 million.
- Bologna (Italy): one of the first Italian cities to experiment with PB, using both digital platforms and neighborhood meetings.
👉 For a detailed overview, see: Global Experiments in Participatory Budgeting: Lessons from Around the World.
6. Challenges and limitations
Despite its strengths, PB also faces difficulties:
- Limited participation: often only a small percentage of the population takes part.
- Digital divide: not everyone has access or skills to participate online.
- Limited resources: PB usually covers a small share of the budget, which can raise unrealistic expectations.
- Sustainability: processes may fade if political commitment or resources are lacking.
7. The future of participatory budgeting
Future developments point to greater integration with digital technologies and the possibility of extending PB to broader areas of public spending. Tools such as gamification, artificial intelligence to analyze contributions, and blockchain for secure voting are already enriching existing experiences.
The goal is to make participatory budgeting a stable feature of democracy, capable of bridging the gap between citizens and institutions while improving the quality of public policies.
Conclusion
Participatory budgeting proves that direct citizen involvement is not a utopian dream, but a concrete and replicable practice. It improves decision-making, strengthens trust, and makes public management more transparent and efficient.
Thanks to digital technologies, participation can become even broader and more inclusive, taking democracy to a new level of maturity.
