How Citizens Participate in Macroeconomic Policy: International Experience and Implications for Poverty Reduction

— Many developing and transitioning countries have difficulty sticking to sound macroeconomic policy. International donors are pushing recipient countries to forge a public consensus on macroeconomic policy as a means to enhance sustainability and impacts on the poor. Finance and budget officials, central bank staff, and economic policymakers, however, often assume that citizens cannot understand or contribute to macroeconomic policy. Yet the poor often do not trust the government to make the right decisions for them. How can citizen participation help bridge this gap? Based on a review of international experience, the paper explores this question, and identifies how development administrators can employ civic participation in macroeconomic policy. The discussion highlights where citizens have the greatest options for participation, and notes the impacts participation can have on fostering policies and outcomes that target poverty reduction. 2003 Elsevier Science Ltd. All rights reserved.