This book provides an overview of theprinciples underlying participatory budgeting. It analyzesthe merits and demerits of participatory budgeting practicesaround the world with a view to guiding policy makers andpractitioners on improving such practices in the interest ofinclusive governance. This publication includes fiveregional surveys, and seven country case studies can befound on the accompanying CD ROM. The study explains thatparticipatory budgeting has been advanced by budgetpractitioners and academics as an important tool forinclusive and accountable governance and has beenimplemented in various forms in many developing countriesaround the globe. It adds that through participatorybudgeting, citizens have the opportunity to gain firsthandknowledge of government operations, influence governmentpolicies, and hold government to account. However,participatory processes also run the risk of capture byinterest groups. Captured processes may continue to promoteelitism in government decision making. This book examinesthe potential and perils of participatory budgeting, asobserved from practices around the globe. It is divided intothree parts. Part I presents the nuts and bolts ofparticipatory budgeting. Part II surveys experiences withparticipatory budgeting in various regions of the world.Part III (Vol. 2) is on the CD ROM accompanying this book,and it examines case studies of practices in seven countries.