Park, NowookChoi, Jae-Young2013-04-112013-04-112013-02https://hdl.handle.net/10986/13164Performance budgeting is considered one of the essential elements of public financial management reform and has been adopted in many countries. However, it continues to present a significant challenge within the budget process. This case study draws from change management theories to tell the inside story of performance budgeting reform in the Republic of Korea, including the background of the reform, the formation of the reform team, and how the team overcame resistance among stakeholders to implement and institutionalize the performance budgeting system. Policy implications include the importance of (1) strong support from top decision makers and (2) customization of the performance budgeting system to accommodate a country's cultural and socio-economic characteristics. The Korean case also demonstrates that stable, sustainable performance budgeting reform requires capacity building of relevant stakeholders and, sometimes, significant restructuring of organizations to accommodate the new systems.en-USCC BY 3.0 IGOACCOUNTABILITYACCOUNTINGADMINISTRATIVE COSTSASYMMETRIC INFORMATIONAUTONOMYBANK POLICYBEST PRACTICESBUDGET ALLOCATIONBUDGET CONSTRAINTSBUREAUCRACYBUREAUCRATSBUYERSCAPACITY BUILDINGCAPACITY-BUILDINGCHANGE MANAGEMENTCIVIL SERVICECONSOLIDATIONCONSULTING SERVICESCUSTOMIZATIONDEBTDECISION MAKERSDECISION MAKINGDECISIONMAKINGDEVELOPING COUNTRIESDEVELOPMENT BANKECONOMIC COOPERATIONECONOMIC DEVELOPMENTEMERGING ECONOMIESEMPLOYMENTEVALUATION CAPACITYEXPENDITUREFINANCIAL CRISESFINANCIAL CRISISFINANCIAL INFORMATIONFINANCIAL MANAGEMENTFINANCIAL MANAGEMENT SYSTEMFINANCIAL REFORMFUND MANAGEMENTGOVERNMENT DEBTGOVERNMENT OFFICESGOVERNMENT REFORMGOVERNMENT SPENDINGGOVERNMENT SUBSIDYIMPLEMENTATION PROCESSIMPLEMENTATION STRATEGYINCOMEINNOVATIONSINSPECTIONINTERNAL COMMUNICATIONSINTERNATIONAL BANKKNOWLEDGE SHARINGLAWSLEGAL BASISLEGISLATIONLOCAL FINANCEMANAGEMENT DECISIONSMANAGEMENT SYSTEMSMANAGERSNATIONAL FINANCENETWORKSOPEN ACCESSOPERATING COSTSORGANIZATIONAL RESTRUCTURINGORGANIZATIONAL STRUCTURESORGANIZATIONAL UNITSPBPERFORMANCE BUDGETINGPERFORMANCE EVALUATIONPERFORMANCE INDICATORSPERFORMANCE MANAGEMENTPHONEPILOT PROJECTPOLICY GOALSPOLITICAL ECONOMYPORTFOLIOPORTFOLIOSPRIVATE SECTORPROBABILITYPROGRAM EFFECTIVENESSPROGRAM EVALUATIONPROGRAM MANAGEMENTPROGRAM PLANNINGPROGRAMSPUBLIC FINANCEREFORM PROCESSREFORM STRATEGIESREFORMSREORGANIZATIONRESOURCE ALLOCATIONRESULTRESULTSRETURNSERVICE DELIVERYSERVICE PROVIDERTARGETSTECHNICAL ASSISTANCETECHNICAL ISSUESTRAINING PROGRAMSTRUST FUNDTURNOVERUSERUSER FEEDBACKUSERSWEBWITHDRAWALMaking Performance Budgeting Reform Work : A Case Study of KoreaWorld Bank10.1596/1813-9450-6353