FORO OCDE MÉXICO 2018: FORTALECER EL ESTADO DE DERECHO Y LA INTEGRIDAD PÚBLICA János Bertók Head of the Public Sector Integrity Division Public Governance Directorate Mexico City 13 March 2018

Trust in Government: low & declining Trust in government decreased in OECD countries after the 2008 economic crisis In Mexico, trust in government decreased 10 points from 2011-13 to 2014-16 (38% to 28%). Several reasons could explain this trend: The economic slowdown experienced during the past five years; The outbreak of several corruption scandals involving high level government officials; Deteriorating security conditions; Low capacity to deliver public goods and services; and A challenging global environment for the very open Mexican economy. Source: Gallup World Poll.

Corruption prevalence varies by regions and level of government Indeed, corruption is a concern at all levels of government in Mexico, but particularly at state and local levels, where INEGI observes a greater incidence of corruption in comparison to the federal level. Perception will only decrease if integrity is grown at the local level. Local levels of government are the “first window” for citizens a provide critical public services. The National Anti-Corruption System recognizes the need to strengthen integrity and the fight against corruption in states and municipalities, both through: Greater co-ordination between the federal, state and municipal levels; The establishment of Local Anti-Corruption Systems. Unfortunately, progress is very uneven. While some states have already established their own systems, others still have to advance their legislative reforms. This is why OECD is working with several states to upgrade their integrity systems, particularly Nuevo León, Mexico City, and Coahuila. Source: Mexico’s National Statistics Office (INEGI) (2015). National Survey on Quality and Impact of Government.

Corruption and productivity in OECD countries Data gathered in 69 countries show that an increase in corruption perception by one point lowers productivity by 2%, as measured by the Corruption Perception Index and the ratio of GDP to the capital stock. As a country with low productivity in the OECD in terms of GDP per hour worked, addressing corruption should be amongst the top priorities for more productive growth. Other negative consequences of corruption are: Corruption plays a role in inequality, a stubborn challenge in Mexico which strongly limits both economic growth and well-being; Corruption lowers government revenue (i.e. through informality which lowers tax revenues) and reduces the efficiency of public spending; Corruption limits fair and equal access to public services (such as education and health), which provide opportunities for social and economic mobility. Corruption undermines the rule of law: When corrupt individuals or companies manage to capture justice institutions, obstruct proceedings and break laws with impunity, trust in justice and law enforcement deteriorate, legitimacy is lost, and their capacity decreases. Several pressing issues in Mexico linked to corruption: Inequality, security, government efficiency, and so on. Source: OECD (2017). OECD Integrity Review of Mexico.

FORO OCDE MÉXICO 2018: impulsar el despegue de la infraestructura para el desarrollo János Bertók Head of the Public Sector Integrity Division Public Governance Directorate Mexico City 13 March 2018

Infrastructure is mainly a governance challenge

National long-term strategic vision: Key Drivers in OECD countries KEY DIVERS OF CURRENT STRATEGIC PLANS To overcome governance challenges, some mechanisms to be adopted include: Developing a strategic vision for insfrastructure and co-ordinating infrastructure policy across levels of government, by: Establishing a national (whole of government) long-term strategic vision that addresses infrastructure service needs; As well as robust co-ordination mechanisms across levels of government to encourage a balance between a whole-of-government perspective and sectoral and regional views. According to the OECD Survey on Infrastructure Governance, the key drivers of current strategic plans for OECD countries are (see figure). Source: OECD (2016). Getting Infrastructure Right: The Ten Key Governance Challenges and Policy Options.