In this regard, the project would constructively link corruption prevention to institutional
reform/modernization by building a relatively broad based (if mostly expert) consensus for concrete
actions emerging from a broader strategy for institutional change. The project concentrated, as detailed
above, on administration of justice, procurement, customs, privatization, social security and financial
management/budgeting. The selection of these six general areas of focus responded to the need to
address broad issues and preserve latitude for developing consensus on priorities and approach. In
comparison to the project in Brazil, the focus of this project was much broader in keeping with the need to
build the foundation of a reform and anti-corruption effort.
Each diagnostic study combined technical expertise of the consultant – in each case an accomplished
expert in the field with experience in reforms in other countries and contexts – with participatory
stakeholder meetings to produce a document that reflected a consensus on technically sophisticated
Evaluation Report Reducing Corruption
recommendations. Furthermore, each study was presented to the press and public by a relatively broad
group of sector stakeholders to enhance impact and credibility as well as broaden ownership.
The stated objectives of this project were:
• To identify and promote strategies to combat corruption;
• To advocate legislative, institutional or constitutional reform in order to reduce opportunities for
• To generate business leadership and public support for the fight against corruption; and
• To strengthen democratic institutions in Ecuador.
Each study, in keeping with the project plan, contained four basic elements:
1- An introduction to the theme by the Director of ANDE including a statement of ANDE’s position on
2- A diagnostic – historical, empirical and institutional – of the issue by a recognized expert
3- Alternative approaches to address the problems – including corruption – identified; and
4- And outline of short, medium and long-term measures to be taken to implement the
Administration of Justice: Written by a well-respected AID/IaDB consultant and expert on accounting
and legal system modernization, this brief study reviews ongoing judicial reform efforts in Ecuador. Its
three key specific recommendations are:
1- codifying and rationalizing the knot of overlapping laws;
2- modernizing (increased speed and efficiency) the legal process and;
3- matching efficacy of administration of justice to growing demand, are justified by historical,
empirical and political analysis.
Public Contracting/Procurement: This is a comprehensive primer on how the procurement system
needs to be modernized – in keeping with a region-wide trend – to avoid habitual (and well publicized)
misuse and encourage competition. The study addresses the various institutions involved and
corresponding adjustment in their roles, laws and the constitution to generate the proper balance of
effectiveness and control.
Customs: A very straightforward diagnosis by an Ex-Director for the need for reform of laws, processes
and enhance personnel training. This study like the others, briefly addresses the reform of this sector in
relation to the historical corruption that has plagued Ecuador, offering mechanisms for changing the
institutional culture in keeping with the “island of integrity” notion.
Social Security: This very thorough study offers a convincing blueprint of downstream costs and benefits
of comprehensive reform. It details steps to be taken to recover the reform initiative in this area.
Privatization: Drafted by the key architect of privatization in Bolivia, the study reviews the issues,
institutions and interests at play while addressing some of the variables in the key sectors under
consideration for privatization. In a very common sense fashion it demystifies an issue that in Ecuador is
shrouded in dark mystery and legend.
Evaluation Report Reducing Corruption
Transparency in Financial Management/Budgeting: This study reviews in a very broad fashion the
issue of the government role in transparent budgeting and financial management and its effect on various
key economic sectors.
A working luncheon focusing on each topic (one luncheon for each topic) with key stakeholders
(usually about a dozen) moderated by the consultant contracted to draft the study was conducted during
the diagnosis preparation stage. The process of exchanging ideas to reach consensus varied from group to
group. But in each case, a consensus was reached and was reflected in the final study document. The
stakeholders who participated in the process are acknowledged at the end of each study document. These
key stakeholders were brought together for a second working luncheon at which the final document was
reviewed and presented to the press.
was limited to key stakeholders in and out of government;
built a consensus among these sector stakeholder;
generated a technically proficient documents accessible to a relatively wide audience; and
addressed long-term strategies as well as mid and short-term concrete reform recommendations.
The methodological presupposition was that diagnostic studies with recommendations generated and
supported by a key group of specialized sector stakeholders, would produce both a strong demand for
concrete action and support for a broader strategy for reform.
The contextual presuppositions were more fluid in keeping with the particularly changeable political
environment in Ecuador over the last several years. The logic was that if solid recommendations
supported by a significant constituency were put on the table eventually part of the strategy and measures
would be taken up as political circumstance allowed. The strategy has been adopted by the Mahuad
government (reflected in the Anti-Corruption Action Plan). While there are plans for implementation and