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

2. 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.

3. 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

4. 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.

5. 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:

6. 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

7. 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 (www.modernizacion.cl); Complaint and Information Offices; State Wide Internet Portal (www.estado.cl)  Administrative Probity Law: free access to information, new incompatibilities, etc.  Electronic Procurement Information system

8. Administrative Modernization and Ethics Programs Public Procurement Electronic Information System (www.compraschile.cl) The Chilean State buys and contracts MM US$ 7.000 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

9. Administrative Modernization and Ethics Programs State Internet Portal (www.estado.cl) 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

10. 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).

11. 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.

12. Administrative Modernization and Ethics Programs Any questions or comments: Claudio Orrego Secretario Ejecutivo Comité Interministerial de Modernización de la Gestión Pública phone: (562) 694-5808 fax. (562) 695-7343 mail: corrego@minsegpres.cl web: www.modernizacion.cl web: www.estado.cl