Administrative Modernization and Ethics Programs Claudio Orrego Larraín Executive Secretary Interministerial Committee of Public Management Modernization IX IACC DURBAN October, 1999

Administrative Modernization and Ethics Programs Context  Public confidence is increasingly a critical asset for effective and legitimate democracy and economic development.  New and greater demands on the State: Þnew role of the State as a regulator Þnew and more complex social demands (quality of life, environment, security, drug abuse, etc.) ÞState and politics face a crisis of legitimacy Þnew and higher ethical standards for public conduct Þgreater salary gap with the private sector.

Administrative Modernization and Ethics Programs Limitations of some anti- corruption strategies  Excessive emphasis on the legal (criminal) aspects of public ethics.  Restrictive concept of ethics (mandate of things you are not suppose to do)  Weak linkage with institutional and management reforms (“ethics as a unique and especial policy area”)  Focus on the supply of good and ethical government, but not in the demand for it

Administrative Modernization and Ethics Programs Public Management Modernization and Ethics  Corruption limits efficiency and effectiveness of Government.  Efficiency and effectiveness add a new and key dimension to public ethics.  To increase efficiency and effectiveness you have to do a lot more than just investigate and punish corruption.  A positive externality of modernizing public management is precisely more transparency.

Administrative Modernization and Ethics Programs Chile´s Modernization Agenda  Human Resources: training, cultural change, competitive salaries  Quality of Service and Citizen Participation: putting users first, hearing them, measuring their satisfaction, recognizing the models  Management and IT: output based budget, performance evaluation, online services  Institutional Reform: Decentralization and strengthening regulatory institutions  Transparency and Probity:

Administrative Modernization and Ethics Programs Why is Transparency so critical?  Allows for customers´ and citizens´ input to improve performance  Strengthens the concept of accountability among public officials  Allows for social control and assessment of government  Deters corruption by increasing visibility of any wrongdoing  Fosters legitimacy of Democracy

Administrative Modernization and Ethics Programs Some Chilean Examples  Evaluation and control: Project evaluation program; Institutional Performance Contracts; Internal Audit Office  Access to Information: Agency Financial and Management Statements ( Complaint and Information Offices; State Wide Internet Portal (  Administrative Probity Law: free access to information, new incompatibilities, etc.  Electronic Procurement Information system

Administrative Modernization and Ethics Programs Public Procurement Electronic Information System ( The Chilean State buys and contracts MM US$ a year, with more than 1,4 MM of transacciones. This system, plus the possibility of electronic bidding, will save the Chilean Government MM US$200 a year. Part of a more wide reform on public procurement, which includes: A new framework law on public procurement, the elimination of the procurement agency, electronic bidding and this information system

Administrative Modernization and Ethics Programs State Internet Portal ( Almost 400 web sites (from 30 in 1998) The information can be search by: theme, by word, by alphabetical order, by Government structure and by service More than 2000 visits a day. Messages to the web master are increasingly related to service quality and abuse of power Has forced us to develop a policy on information and services on line

Administrative Modernization and Ethics Programs Some Lessons  Usefulness of treating public ethics as a component of the Modernization process  Ethical risks of any Modernization process are addressed by balancing trade-offs  Political commitment and direct engagement of the President is key to a consistent policy.  The need of social pressure to make politicians face the costs of not enacting difficult reforms (in Chile: political financing and senior officials salaries).

Administrative Modernization and Ethics Programs Some Lessons (continued)  The need of a global plan and clear goals.  You need strong institutions and standard operational procedures to make ethics part of public sector´s routine.  The need to have ethical training, starting by the senior managers  Need for an autonomous and external pressure for institutional change (not only scandals)  Importance to create an internal and external network for a more ethical government.

Administrative Modernization and Ethics Programs Any questions or comments: Claudio Orrego Secretario Ejecutivo Comité Interministerial de Modernización de la Gestión Pública phone: (562) fax. (562) mail: web: web: