Promoting an Integrity Agenda: The Challenge to Strengthen Institutions in Latin America

The perception of the incidence of corruption in Latin America and the Caribbean is slightly higher than in the rest of the world, and much greater than in more developed regions, as reflected in CAF Economy and Development Report (EDR 2019), entitled Integrity in Public Policies: Keys to Preventing Corruption, presented in Panama City. These perceptions have been partly fueled by several notable cases that have come to light in the region in recent years. Against this backdrop, countries have been implementing reforms. 

Lucía Meza, CAF representative in Panama, said: “We have identified that reforms have been initiated in the region to mitigate corruption, and we welcome this action because governments must be consistent and increase efforts in this area for the social wellbeing of our countries. Thus, CAF seeks to contribute to the reform agenda underway to promote integrity in public policies in Panama and the region, by implementing legal instruments for legal punishment of corruption, as investments to build capacities and transparency in the civil service.” 

Furthermore, Elsa Fernández, Director General of the National Authority for Transparency and Access to Information (ANTAI), explained that her institution will ensure accountability, implementing corruption prevention controls through open government principles, under a 2020 strategy based on the benefits of technology to ensure access to public information and reporting, protecting and empowering whistleblowers of administrative crimes. “The report is consistent with our work vision,” noted Fernández.

The report reveals that 51% of Latin Americans consider corruption to be the main problem in their countries (taking priority over economic conditions, access to housing and services, or insecurity), and 23% of citizens report that they have been solicited a bribe by a public official within the last 12 months.

”There are several specific channels through which corruption causes welfare losses for example, diversion of funds reduces the quantity and quality of public goods and services, including education, health and infrastructure, among others. This can exacerbate socio-economic inequalities. There are also negative effects on productivity and economic growth, because decisions within companies and the allocation of funds between companies are distorted. In addition, clientism and lack of business integrity cause drops in the aggregate level of investment,” explained Gustavo Fajardo, Chief Economist at CAF.

The researcher also stated that the most harmful consequence is the loss of trust in public institutions and the democratic system, which opens the door to deterioration of the legitimacy of government institutions and brings about political and social instability. It is therefore essential to invest in transparency policies, realizing our potential with new technologies that provide access to relevant information to combat corruption, and allow for greater citizen oversight of government action.

The role of citizens

CAF2019 Survey data show that, in Latin American cities surveyed, an average 57% of individuals believe that their fellow citizens punish corruption less than necessary, and suggest that approximately one-third of individuals do not recognize hypothetical facts describing situations of influence-peddling or negotiations incompatible with the civil service as acts of corruption.

There are factors that increase people's permissiveness toward corruption, such as the perception that an official is competent (despite being corrupt), political or ideological affinity, client relationships, or the prevalence of social norms that discourage reporting. Noteworthy is that there is evidence that the content of educational curricula permanently affects people’s civic values. Thus, education systems can be an important channel of transmission of attitudes towards corruption. An essential task is to increase sustained investments through the traditional education system and other learning spaces, and the transmission of values to raise awareness among citizens.

The presentation of EDR 2019 in Panama City was attended by Elsa Fernández, Director General of the National Authority for Transparency and Access to Information (ANTAI); Lucía Meza, CAF representative in Panama and Gustavo Fajardo, CAF Chief Economist who presented the study. The presentation of the report included an exchange of views on the results of the study and the fight against corruption through a panel featuring Mercedes Eleta de Brenes, President, Panamanian Association of Business Executives (APEDE); Hamzah Haji, Project Coordinator in Panama, Trust for the Americas; Alma Montenegro de Fletcher, Director of the Center for Public Policy and Transparency.