Latin America Needs More Policies to Reduce Corruption and Strengthen Democracy

In recent years, Latin America has seen an improvement in the implementation of systems to reduce and minimize corruption, but there is still a long way to go to ensure integrity of public policies and guarantee that the governments’ actions are more transparent and pursue the true interests of the people.

These are the main conclusions reached by a group of international experts gathered at CAF’s Annual Conference, held Quito in celebration of its 50th anniversary, aiming to build consensus among broad social sectors to reduce corruption in the region.

“CAF has been helping countries strive towards development for 50 years, and we believe that issues such as governance, transparency and integrity in public management are essential to achieving this goal,” CAF Executive President Luis Carranza said. “That is why we are promoting agreements that allow countries to reduce their corruption levels and implement efficient public policies focused on their people.”

Ecuadorian Vice President Otto Sonnenholzner emphasized CAF’s contribution to meeting the objectives of Ecuador’s Prosperity Plan. “There is US$1.8 billion in funding until 2021, earmarked for productive and social development projects, such as the Casa Para Todos housing plan or the electrification of the shrimp sector,” he said. “We are a different country, we are transforming it with transparency, honesty and dialogue, where common well-being is our highest priority.”

Corruption has become the main concern of Latin Americans, as it directly affects the quality of their democracies, as well as the implementation of efficient public policies and the business environment. According to CAF’s 2019 Economy and Development Report (EDR 2019), nearly a quarter of Latin Americans have reported that an official has solicited a bribe in the last 12 months.

UNDP Regional Director for Latin America and the Caribbean Luis Felipe López-Calva advocated the use of new technologies to more efficiently combat corruption and for concluding far-reaching agreements to root out corrupt practices.

Chile Transparente Executive Director Alberto Precht called for the participation of the private sector in the implementation of anti-corruption policies, which does not happen currently on a regular basis. “We have improved our knowledge of the issue, but we are worse off in that the enemy has become much more sophisticated,” he said during the event’s first panel discussion.

The panelists agreed that it is imperative to reduce the perception of impunity, as it will likely inhibit the success of policies, as well as citizens’ trust in public servants. “A few recent cases have led to a greater intolerance of corruption in Latin America,” said World Economic Forum Director for Latin America Marisol Argueta de Barillas. “An issue that years ago was widely accepted as part of Latin American culture, has ceased to be so.”

EDR 2019 Presentation

The event served as a backdrop to the presentation of the <2019 CAF Economy and Development Report , titled “Integrity in Public Policy-Making: Keys to Preventing Corruption,” which aims to serve as input to this reform agenda, reviewing progress and outstanding tasks in four areas of action: functioning of official monitoring and oversight bodies; entry mechanisms of bureaucracy and politics, and their role in attracting and recruiting suitable and independent individuals; external control through transparency and citizen participation initiatives; regulations to control the influence of private company and individuals’ interests in government decisions.

The 2019 EDR puts forward a series of proposals to promote a comprehensive integrity agenda around a set of key issues that include:

1. Adopting decision protocols and formulas based on objective criteria.
2. Revamping audit systems and building investigation and law-enforcement capacities.
3. Promoting competitive and transparent electoral systems.
4. Professionalizing civil service and ensuring access to civil service is based on merit.
5. Improving information and dissemination systems on the actions of government and officials.
6. Empowering citizens and encouraging more vigilant attitudes.
7. Ensuring the operation of complaint and whistleblowing channels, and leveraging technology to create new spaces.
8. Strengthening institutions to prevent payment and offering of bribes by individuals and to encourage the adoption of compliance programs within companies.
9. Investing in better lobbying regulation, in the identification and management of conflicts of interest.
10. Improving decision-making processes in particularly vulnerable activities, such as the provision of public infrastructure.

Finally, the report highlights the disruptive role that technology can play. Data generation, openness and processing tools provide plenty of opportunities. Technological applications enable improvements in resource management, communication and intra-government monitoring, while enabling new channels for dissemination of information within the state and towards society.