Skip to main content
Participatory budgeting

Participatory budgeting

Democracy & Governance

Participatory budgeting democratizes public investment by giving people the power to decide how public dollars are spent.

In a participatory budgeting process, residents discuss, develop, present, and then vote on public investments. While designs vary, PB often starts with neighborhood assemblies. There, residents learn about PB and discuss different priorities. Then, delegates are elected or volunteer to craft specific project and budgetary proposals, often with technical assistance. Finally, residents either directly vote on the winning proposals or the residents elect delegates who decide on the winning projects. More than 2,700 governments and 1,700 cities worldwide have introduced PB into their governance structures. According to PB expert Michael Menser of Brooklyn College, they range in size from regions with 14 million people in China to cities with 20,000 residents in Germany.

Potential Impact

PB shifts investment to social needs, while also empowering individuals and civil society organizations. In Brazil, municipalities that had PB spent more on health care and sanitation, and in the process reduced their infant mortality rates. In the seven years after the introduction of PB in Porto Alegre, Brazil, roadbuilding increased by 500 percent. The number of schools also increased by fourfold and the student population doubled, according to Tom Malleson, assistant professor in the Social Justice and Peace Studies program at King’s University College. PB can also boost the civic capacities of individuals by providing them a space to practice democracy, and new community leaders often emerge from the process. Participants can discuss collective needs, learn about political and administrative processes, and meet individuals from different social positions. In New York City, PB participants are about 7% more likely to vote in future general elections. PB can also incentivize the formation and democratization of community groups. In Brazil, PB was associated with an 8% increase in the number of civil society organizations.

Transformative Characteristics

Investment decisions—public and private—are often made by actors far removed from democratic pressures. Participatory budgeting democratizes those decisions. While markets treat people as social atoms, aggregating their individual choices and weighting them based on wealth, PB promotes deliberation that allows individuals—especially the marginalized—to learn from each other; put new issues on the political agenda that market forces neglect, including issues of justice; and make real choices for their community. Finally, PB can foster long-term institutional changes through improved governance. Relationships between individuals, groups, and officials can promote information sharing, increased transparency, reduced corruption, and better administration, leading to compounding improvements.


Porto Alegre, Brazil

The participatory budgeting movement was launched in this port city of nearly 1.5 million in 1989, and tens of thousands of residents were able to allocate the equivalent of hundreds of millions of US dollars. Porto Alegre also institutionalized social justice values through their “Quality of Life Index,” which ensured that more resources per capita were devoted to underserved areas. To take one outcome, the number of neighborhood associations in the city doubled from 1988 to 2000. “In terms of demographics, the average participant [was] poorer and less educated than the citywide average,” according to Tom Malleson of King’s University College in Toronto, Canada. More than 120 of Brazil’s largest 250 cities have since adopted participatory budgeting. However, when the center-right Social Democracy Party took hold in Porto Alegre in 2016, the program there was eventually drained of resources by the political opposition and was suspended in 2018.

New York City

In 2018 alone, nearly 100,000 New York City residents allocated more than $36 million to 124 community projects in what the Participatory Budgeting Project calls “the largest local civic engagement program in the US,” with participants as young as 11 years old. Since 2012, $210 million has been allocated through PBNYC, which the Participatory Budgeting Project says has sparked an additional $180 million in spending through the traditional appropriation process. According to Michael Menser of Brooklyn College, women have been “overrepresented in every stage of the process” and “people of color and middle- to lower-income residents were better represented in PB than in the local elections.” New York residents can also locate and track projects in the city through the online myPB tool.


Lower-income people often have an outsized presence in participatory budgeting, which reduces what scholars have called “representative democracy’s pro-wealthy bias,” but the very poorest are still underrepresented. More outreach, transportation, childcare, and free time would help everyone have a more equal chance to participate. Critics often point out that where PB processes are used, they usually cover only a small slice of the budget. Because PB in itself does not assure just outcomes and can fail to address structural, long-term, or large-scale problems, scholars suggest that residents assess community needs, adopt practices that assure poorer areas have their needs met, and take part in project implementation and oversight. Finally, PB allocations vary and support is subject to changing political tides.

More Resources

  • Tom Malleson, After Occupy: Economic Democracy for the 21st Century (New York: Oxford, 2014).
  • Michael Menser, We Decide: Theories and Cases in Participatory Democracy (Philadelphia, PA: Temple University Press, 2018).
  • Michael Touchton, and Brian Wampler, “Improving social well-being through new democratic institutions,” Comparative Political Studies 47, no. 10 (2014): 1442-1469
  • Participatory Budgeting Project (


Download and Share

More related work


Los elementos de una economía democrática

Los elementos de una economía democrática

Las políticas y prácticas tradicionales evidentemente nos están fallando frente a las tendencias decadentes de largo plazo en cuanto a la desigualdad de ingresos, la concentración de la riqueza, la desinversión y desplazamiento de las comunidades, la pobreza persistente con carácter racial y geog read more
Public pharmaceutical

Public pharmaceuticals

Public pharmaceutical enterprises are free from the constraints of profit maximization and can define their bottom line based on such values as their contributions to public health and local economic resiliency. read more
Public holding company

Public holding company

The effects of a local firm facing economic disaster can ripple destructively through a community. Public holding companies could take either partial or full ownership positions in distressed firms to prevent the economic and social dislocations associated with liquidation or collapse. read more
Community development financial institution

Community development financial institutions

CDFIs are committed to providing services that create and broaden economic opportunities in neighborhoods that have faced historical disinvestment. read more
Low-income limited liability company

Low-profit limited liability companies

An L3C straddles the line between a nonprofit and for-profit venture, an enterprise with a profit goal that is subordinate to its charitable mission. read more
Credit union

Credit unions

Credit unions are financial cooperatives owned by their account holders and can concentrate on maximizing their impact in the community and on the financial well-being of their members. read more
Element of the Democratic Economy: Social Wealth Fund

Social wealth fund

A social wealth fund embraces the collective ownership of assets to provide services and democratically distribute resources within a society or community. read more
Worker cooperative

Worker cooperatives

A worker cooperative provides for both democratic ownership and democratic governance of the workplace, unlike traditional businesses in which ownership is often antagonistic to the workers who create value for the firm. read more
Municipal enterprise

Municipal enterprise

Municipal enterprises are businesses or services owned by local public authorities that provide services or generate revenue for local communities. read more
Employee stock ownership plan

Employee stock ownership plan

Description An employee stock ownership plan (ESOP) enables full or partial ownership of a business by its employees through a pension plan or trust. The first ESOP was created in 1956 by a San F read more
Element of the democratic economy: Public bank

Public Banks

How financial institutions owned by and accountable to the people help create a nonextractive economy. read more
The commons

The Commons

The commons are collective resources—encompassing things as varied as land, seed banks, and open-source software—managed by self-organized social systems under mutually acceptable terms. read more
Land bank – Elements of a Democratic Economy

Land Bank

Land banks can acquire abandoned, foreclosed, and tax-delinquent properties in order to convert them into productive use. read more

Community Land Trust

CLTs are nonprofit organizations that acquire and steward land in a “trust” for the permanent benefit of low-income communities. read more
Green Bank

Green Bank

A green bank can help communities transition away from fossil fuels and build resilience against climate change. read more
Community benefit agreement

Community Benefit Agreement

A legally binding product of negotiations between a developer and community members who have banded together to safeguard their community’s interests. read more

Resident-Owned Community

Resident-owned communities (ROCs) are manufactured housing neighborhoods (sometimes referred to as mobile home or trailer parks) in which the land is community-owned and managed. read more

Limited Equity Housing Cooperative

A limited equity housing cooperative is a residential development owned and managed by a democratically governed, nonprofit cooperative corporation, such as a tenants’ union. read more
Democratic energy utility

Democratic Energy Utility

Democratic energy utilities are nonprofits run by the public or community members in a way that enables their engagement in decision-making and distributes ownership. read more