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Ecuador’s Struggle Against Corruption: Report Urges Transparency in Political Finances

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A recent report has highlighted the need for greater transparency in Ecuador’s political financing system, urging parties and candidates to disclose their funding sources and expenses in a timely manner.

Report Highlights Need for Transparency

The report, conducted by Fundación Ciudadanía y Desarrollo (FCD) with support from the Pan American Development Foundation (PADF) and Mark L. Schneider of the Center for Strategic and International Studies (CSIS), analyzed four key areas: transparency in political financing, fiscal and budgetary transparency, public procurement, and civil service reform.

Political Financing Transparency

In terms of political financing, the report found that citizens have a right to know who is funding which parties and candidates, how much they are receiving, and how the recipients are spending their funds. To achieve this:

  • Parties and candidates should be required to publish all financial details on their websites.
  • The National Electoral Council (CNE) should also make the information available online in a timely manner.

Stronger Coordination Needed

The report also highlighted the need for stronger coordination between:

  • CNE, comptroller general, Finance Ministry, and Internal Revenue Service
  • Attorney general’s office to prevent fraud and ensure accountability

Fiscal and Budgetary Transparency

Ecuador’s macroeconomic and fiscal condition has been severely impacted by the COVID-19 pandemic. The country is losing close to $4 billion annually due to tax evasion, according to the Economic Commission for Latin America and the Caribbean (ECLAC). To address this issue:

  • Regulatory reform
  • Ecuador’s incorporation into the Global Initiative for Fiscal Reform (GIFT)

Transparency in Public Procurement

The report found evidence of fraud in infrastructure contracts worth millions of dollars. Key reforms needed include:

  • Comprehensive regulatory reform of the National Public Procurement System
  • Institutional strengthening through technological innovation
  • Online public access to contract information

Civil Service Reform and Public Administration

The report addressed transparency in civil service reform and public administration, highlighting gaps in existing norms and recommending measures such as:

  • Amending the Law on Asset Declarations to incorporate OAS standards
  • Requiring public disclosure of requirements for high government positions

Report’s Significance

The report’s findings have significant implications for Ecuador’s fight against corruption. “The diagnostic report is a crucial tool for understanding the scope of the problem and identifying solutions,” said Mark L. Schneider, senior adviser at CSIS. “We hope that it will contribute to a more transparent and accountable political system in Ecuador.”

Availability

The full report is available in Spanish on the FCD website, with an English-language executive summary also available.

About the Author

Mark L. Schneider is a senior adviser (non-resident) with the Americas Program and the Human Rights Initiative at CSIS.