CIPE's Ecuadorian Partner Helps Shape New Constitution

The National Association of Entrepreneurs (ANDE), CIPE's partner in Ecuador, has been increasingly successful in fighting corruption. So successful, in fact, that ANDE's recommendations were recently incorporated into Ecuador's new Constitution, which went into effect on August 10, 1998. CIPE and ANDE have launched a new effort designed to fight the corruption engulfing all sectors of this South American nation. Setting an example for the region, the State of Ecuador and ANDE have taken the initiative to end the corrupt practices that are stifling the country's economic growth and political reform.

Promoting the theme of "Being Honorable is Good Business," ANDE is targeting six priority areas that are critical for eliminating corruption through regulatory, legal, and constitutional reforms. These include administration of justice, government/public procurement, customs practices, privatization, Social Security, and transparency in financial management of the public budget.

By generating constructive dialogue among all sectors of society about these issues, ANDE has already begun to have a positive impact on the reform process. ANDE's recommendations were recently adopted by the Government of Ecuador in the new Constitution, which went into effect in August. (See "ANDE: Recommendations and Results" below)

Each ANDE/CIPE initiative involves three basic steps: 1) ANDE hires expert consultants to prepare draft policy papers with recommendations to fight corruption;2) ANDE hosts a small roundtable session with public and private sector experts andleaders to elicit suggestions and feedback; 3) The modified policy paper is finalized, released in a public event, disseminated widely in Ecuador, and incorporated into the policymaking process.

Ecuador has been working to come to grips with corruption for several years, but this new initiative represents the first program that takes a pragmatic approach to this all encompassing issue. While earlier programs have focused on combating corrupt practices in government, the ANDE/CIPE program incorporates all levels of society: public sector, private sector, media, associations and non-governmental organizations (NGOs), clergy, and Ecuadorians as a whole. The program's basic philosophy is that, by using public awareness campaigns to encourage all parts of society to "do the right thing," Ecuadorians will begin to realize that corruption is destructive to all and that it needs to be eradicated.

The initiative could not be more timely: Public disgust with corruption played a key role in bringing down the President of Ecuador last year, and with annual inflation nearing 50 percent and falling oil prices, the people of Ecuador are demanding change. In the words of one prominent reformer, "If being honorable is good business, and we believe that it is, then this initiative is long overdue; we should have launched it years ago."