Initiative includes reforms in the legal and institutional framework in the areas of statements of interest and prevention and sanctioning of conflicts of interest, among other issues
Chile is receiving a $130 million loan from the Inter-American Development Bank to carry out reforms in its integrity and transparency agenda.
The IDB program aims to equip the country with the tools needed to stay on the cutting edge in the fight against corruption. Specifically, it supports eight legislative and three administrative measures undertaken by the executive branch of the Chilean government which, taken as a whole, aim to enhance prevention of corruption and give priority to transparency in interplay between politics and business.
Chile has been a pioneer in Latin America in modernizing its public administration, which is based on solid democratic and institutional foundations. For instance in the 1990s Chile undertook second-generation reforms that boosted the independence of institutions administering justice and improved transparency and access to information, among other achievements. Several international indices measuring transparency and integrity give Chile a high rating.
But since late 2014 several high-profile public cases emerged, marked mainly by an improper relationship between money and politics, and this has undermined people's trust.
The government reacted by creating a Presidential Advisory Council on Conflicts of Interest, Influence Trafficking and Corruption. Acting on the recommendations of the council and in consultation with other actors, the government formulated a comprehensive set of reform measures that were well received and featured among others efforts to strengthen the political party system, including how it is financed, and a more specific definition of what constitutes corrupt or coercive practices.
The IDB-backed project foresees policy measures to enhance the legal and institutional framework of integrity and transparency in the declarations of interests and assets, preventing and sanctioning conflicts of interest and the administration of elections.
For the first time the national criminal code will include corruption among private entities.
Measures are also planned to strengthen institutions responsible for professionalization of public administration and its tools for public tenders, and the requirements for integrity and transparency in procurement and the management of concessions with the Public Works Ministry.
There is also a plan to transform the current Superintendency of Securities and Insurance into a Securities and Insurance Commission with greater regulatory powers. The program also calls for implementing citizen awareness training programs to promote civic values in schools.
The funds are being provided as a Policy-Based Loan, over 12.2 years and with an interest rate pegged to the LIBOR.
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The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.