Performance management in the framework of public accountability in Estonian Local Governments

There are various definitions and aspects of “good governance” found in the literature. According to Governance International, UK, public governance is how an organization works with its partners, stakeholders and networks to influence the outcomes of public policies (Loeffler 2009). The White Paper on European Governance stresses five principles that underpin good governance – openness, accountability, effectiveness and coherence. Peda (2012) stresses that the availability of the performance-related information plays an important role in aligning governance actors’ interests through established governance mechanisms. There are multiple reasons to measure performance and produce performance information (Behn 2003; Cunningham and Harris 2005), whereas Peda (2012) points to the need of having also a process for using the performance information.; Tthe main distinction in using performance information can be made between performance reporting as an accountability tool and performance management as a steering tool (Greiling 2006). Over two-thirds of OECD countries include non-financial performance information in their budget documents (Curristine et al 2007).

According to Estonian legislation Local Governments in Estonia currently have to compile strategic plans, prepare the annual budgets in accordance with the strategic plans and disclose non-financial performance information in relation to the strategic plans in their annual reports. However, this information has to be integrated into the budget process, in order to have a complete performance management system (PMS) (Curristine et al 2007). According to Loeffler (2009) and Bovaird and Loeffler (2002) in order for local governments to move toward local governance they needs to ...

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...nagement arrangements promoting public accountability to the residents of the LGstakeholders of the LG?

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This study uses document content analysis along with detailed interviews with selected staff and council members of the local governments. Describing and analysing the performance information contained in strategic and operational plans, budgets and annual reports of 20 municipalities in Estonia in the year 2012 from the public accountability perspective. The factors that will be examined during the study contain the following:

• identification of the subjects to whom the local authority must be "accountable" and defining the basic conditions of the nature of these relationships;

• determination of informative needs from homogeneous classes of stakeholders;

• development and implementation of channels and tools to meet the identified needs of accountability.