1. Introduction
This Chapter provides an introduction to the report. It highlights the growing perception and impact of corruption among citizens in Ecuador and its effects on the level of trust in government. The Chapter also illustrates the functions of the OECD and how it can support Ecuador in developing a sustainable response to corruption through its integrity standards and extensive regional experience.
Ecuador, similarly to other countries in the Latin American and Caribbean (LAC) region, experiences a growing disconnection between citizens and public institutions, which is also due to the high level of perceived corruption among citizens as well as to the dissatisfaction with such institutions (OECD, 2019[1]) (OECD et al., 2019[2]). Results from the 2018 survey from Latinobarómetro show that the level of trust in governments in the region halved in the last ten years, and that the rate in Ecuador (25%) is sensibly lower than the one registered in 2009 (46.5%) and just above the regional average (22%). At the same time, it highlights that 8% of Ecuadorians perceive corruption as the country's most important problem and more than half of them consider that the level of corruption grew compared to the previous year. Similar findings emerge from the 2018 "Global Corruption Barometer" enquiring direct experiences of corruption in public services and perceptions of the extent of corruption, which reports that 44% of Ecuadorian respondents declared to have paid a bribe to access basic services. These findings are coherent with those of the Americasbarometer showing that, in 2019, 26.6% of respondents reported having been victims of an act of corruption and a growing tolerance for corruption – especially among the young generations - whereas 25% of Ecuadorians justified paying a bribe in certain circumstances, which marks a 12% increase compared to 2014 (Moncagatta et al., 2020[3]; OECD, forthcoming[4]). Corruption has remained one of the highest concerns of Ecuadorian citizens even during the COVID-19 pandemic. A poll conducted in December 2020 highlighted that citizens consider it the third most significant challenge in the country, above the concerns related to the control of COVID-19 but after poverty and unemployment, which corruption contributes to worsen (CEDATOS, 2020[5]).
In Ecuador, in line with the approach of other countries in the region, the anti-corruption efforts have been focused on investigations and sanctions. While being crucial to avoid impunity and ensure the rule of law, this has not proved to be sufficiently effective in controlling corruption. Indeed, the OECD experience shows that a strategic and sustainable response to corruption should be based on public integrity, which refers to the “consistent alignment of, and adherence to, shared ethical values, principles and norms for upholding and prioritising the public interest over private interests in the public sector” (OECD, 2017[6]). This implies that public officials not only comply with the minimum required by law, but that they behave according to the values and standards of conduct inspired by the prominence of the public interest. Public integrity, in turn, creates confidence among citizens and businesses that they live and work in a context of equality of conditions, where meritocracy and efforts, rather than connections or bribes, determine opportunities. Ensuring that values and standards of conduct in the public sector are implemented effectively is therefore a necessary condition for reversing the decline of trust in government, making integrity one of the key levers of trust (Murtin et al., 2018[7]). On the contrary, the erosion of trust undermines the legitimacy of governments and their ability to finance and deliver good quality public services, creating a vicious cycle that further affects citizen satisfaction, erodes the social contract and undermines productivity and sustainable, inclusive economic growth.
The OECD provides countries with a vision for a public integrity strategy, shifting the focus from ad hoc integrity policies to a context dependent, behavioural, risk-based approach with an emphasis on cultivating a culture of integrity across the whole of government and society. For this purpose, based on the experience of OECD member States and research, it adopted the Recommendation on Public Integrity consisting of thirteen principles organised in three pillars (Box 1.1). The first pillar focus on how to build a coherent and comprehensive system of public integrity, which requires the commitment of senior public officials but also the clarification of responsibilities and the adoption of a strategic approach. The second pillar promotes the development of a culture of public integrity, which includes capacity-building efforts, merit-based human resources processes, efforts towards an open organisational culture, and a whole-of-society perspective to public integrity. Finally, the third pillar of the Recommendation calls for the establishment of accountability mechanisms through risk management, internal and external audit, disciplinary and criminal enforcement as well as citizen participation and integrity in the decision-making processes.
On top of the Recommendation on Public Integrity, the OECD has adopted other legal instruments related to enhancing integrity and preventing corruption, which are:
OECD Recommendation on Guidelines for Managing Conflict of Interest in the Public Service (OECD, 2004[8]).
Recommendation of the Council on Principles for Transparency and Integrity in Lobbying (OECD, 2010[9]).
I. BUILD A COHERENT AND COMPREHENSIVE PUBLIC-INTEGRITY SYSTEM
1. Demonstrate commitment at the highest political and management levels within the public sector to enhance public integrity and reduce corruption.
2. Clarify institutional responsibilities across the public sector to strengthen the effectiveness of the public integrity system.
3. Develop a strategic approach for the public sector that is based on evidence and aimed at mitigating public integrity risks.
II. CULTIVATE A CULTURE OF PUBLIC INTEGRITY
5. Promote a whole-of-society culture of public integrity, partnering with the private sector, civil society, and individuals.
6. Invest in integrity leadership to demonstrate a public sector organisation’s commitment to integrity.
7. Promote a merit-based, professional, public sector dedicated to public service values and good governance.
8. Provide sufficient information, training, guidance and timely advice for public officials to apply public integrity standards in the workplace.
9. Support an open organisational culture within the public sector responsive to integrity concerns.
III. ENABLE EFFECTIVE ACCOUNTABILITY
10. Apply an internal control and risk management framework to safeguard integrity in public sector organisations.
11. Ensure that enforcement mechanisms provide appropriate responses to all suspected violations of public integrity standards by public officials and all others involved in the violations.
12. Reinforce the role of external oversight and control within the public integrity system.
13. Encourage transparency and stakeholders’ engagement at all stages of the political process and policy cycle to promote accountability and the public interest.
Source: OECD (2017[6]), OECD Recommendation on Public Integrity, OECD, Paris, http://www.oecd.org/gov/ethics/Recommendation-Public-Integrity.pdf.
This report focuses on the first pillar of the OECD Recommendation on Public Integrity and analyses the general institutional set-up of the main integrity actors in Ecuador in view of their legal mandates, their capacities and their role and responsibilities in integrity policy making, implementation and enabling accountability. The second section addresses the extent to which the relevant actors at the national level have established effective co-operation mechanisms and a strategic approach to public integrity. The third section focuses on the institutional arrangements and responsibilities for integrity within the Executive branch and how they enable implementation of integrity policies at the entity level. Finally, the last section proposes an action plan including all the recommendations of the report and specifying responsible entity(ies) for their implementation.
The aim of the report is to support Ecuador in laying the institutional foundations to establish integrity systems at national level as well as within the Executive branch and its entities. Furthermore, it provides the basis for a more in-depth review of specific policy areas that are introduced in the report and could benefit from additional analysis and recommendations.
The report builds on the analytical framework of the OECD Recommendation on Public Integrity and is informed by international good practices, especially from countries with similar legal and institutional set-up in the LAC region with whom the OECD has been working closely through other reviews and the OECD-IDB Network for Integrity in Latin America and the Caribbean (Box 1.2). Furthermore, it benefitted from the extensive information, data and feedback provided by almost 30 national actors between institutions, entities, academia and organisations from civil society and private sector through a questionnaire (October 2020), virtual fact-finding mission interviews (December 2020 - January 2021) and validation workshops (March 2021).
OECD Integrity Reviews
The following OECD Integrity Reviews have been carried out in the LAC region, both at the national and subnational level:
Argentina (2019)
Mexico City (2019)
Colombia (2017)
Coahuila, Mexico (2017)
Mexico (2017)
Peru (2017)
Brazil (2012)
OECD-IDB Network for Integrity in Latin America and the Caribbean
The OECD-IDB Public Integrity Network for Latin America and the Caribbean was launched in 2017, bringing together the main actors responsible for integrity systems in the countries of the region. This includes bodies exclusively dedicated to integrity policies, but also actors responsible for government transparency, public service and internal control. The Network aims to lead policy debates for the exchange of best practices and lessons learned from the implementation of integrity policies at regional and international level. The last meeting was held virtually in September 2020 and focused on the topic “Integrity and transparency in infrastructure projects in times of COVID-19”.
Source: OECD (n.d.[10]), “Public Integrity in Latin America and the Caribbean”, OECD, Paris, https://www.oecd.org/governance/ethics/integrity-lac.htm (accessed on 12 April 2021).
The OECD is an international organisation made of 38 member States that works to promote policies that foster prosperity, equality, opportunity and well-being for all. Together with governments, policy makers and citizens, it works on establishing evidence-based international standards and finding solutions to a range of governance, social, economic and environmental challenges. It provides a unique forum and knowledge hub for data and analysis, exchange of experiences, best-practice sharing, advice on public policies and international standard-setting (Box 1.3).
OECD standards are developed by expert committees developed through a rigorous evidence-based process building on best policies and practices and involving a variety of stakeholders.
OECD standards help to level the global playing field, deepen international technical co-operation, and implement shared policy objectives to improve citizen well-being. Standards create efficiency savings for governments and ensure that policies benefit citizens.
The OECD has developed over 450 legal instruments (International Agreements, Decisions, Recommendations, Declarations) with currently more than 250 in force, some relating to multiple sectoral areas.
OECD standards have a truly global reach. For example, the Global Forum on Transparency and Exchange of Information for Tax Purposes has 161 members (including 88 developing countries) working together on implementing tax transparency standards.
Based on standards and evidence-based analysis, the OECD supports individual countries in their policy reform objectives.
Source: OECD (n.d.[11]), “About the OECD”, https://www.oecd.org/about/ (accessed on 12 April 2021).