Ecuador seeks to improve public sector management with IDB support

The Inter-American Development Bank (IDB) has announced the approval of a $270 million loan to Ecuador to improve the ability of public agencies to provide quality services to citizens. 

The country has made ​​significant progress in public administration in recent years, resulting in improved profiles for public employees and better financial management of public administration, among other achievements. 

However, significant challenges remain. Last year, citizens gave public services an average score of 6.7 out of 10, with health and transportation services receiving below average scores. Some 53 percent of the population surveyed reported problems in carrying out procedures in a public office, and the government has indicated that an excessive number of employees is assigned to administrative tasks. 

In a bid to improve public administration, the government has launched a reform that seeks to establish a system of meritocracy and training for public employees and strengthen interagency coordination. 

The present loan is designed to strengthen the ability of agencies that provide public services to improve accessibility and reduce transaction costs for citizens. Measures include automation of services and simplification of procedures. 

The program’s expected results include raising the public approval rating of public agencies from the present 6.7 to 8 out of a maximum of 10, increasing career employees from 66 percent to 75 percent, and reducing the percentage of citizens reporting problems in carrying out procedures from 53 percent to 35 percent. 

The loan has a repayment period of 25 years and a rate based on LIBOR.