good governance practices for the protection of human rights

Response
An Ecuadorian multi-agency effort, launched in 1998, attempted to inject transparency
in the budget process and create avenues for public participation. The
effort was motivated by the conviction that transparency, civil advocacy and public
participation could lead to an increase in and a more equitable distribution
of social spending. Transparency and inclusion at every stage of the budget
process might also ensure that social expenditures were more efficient and accountable.
Furthermore, the programme was motivated by the understanding that the
publication of credible information on economic and financial indicators could
foster a debate on appropriate levels of social spending by the Government.
Design
In 1998, a team of national economists working on a project funded by the United
Nations Children’s Fund (UNICEF) analysed Ecuador’s budget and spending
patterns and found that spending on social programmes was plummeting. Specifically,
investment in education dropped from US$ 611 million in 1996 to
US$ 331 million in 1999, while spending on health fell from US$ 198 million
to US$ 96 million. Spending on social sectors was disproportionately low compared
to allocations for debt repayment and other non-social sectors. In addition,
certain regions, particularly those with a majority indigenous population,
were not getting a fair share of social benefits.
Following this research and analysis, a discussion with government officials led
to an agreement by the President to track social expenditures and the key indicators
of the economic crisis using the database of the Ministry of Economy and
Finance. The Government would collect the necessary information in order to
effectively link its public finance and social policy. The Government also agreed
that it would share the information with the public so as to increase transparency
and public awareness. Finally, the Government asked UNICEF to create a system
for monitoring trends in social spending.
Implementation
The collaborative initiative between the Social Front, which is a government department
coordinating the work of 11 State institutions dealing with social issues,
the Ministry of Economy and Finance, and UNICEF aimed to inject transparency
into every stage of the budgeting process. The programme focused on monitoring
budget formulation and implementation. It also encouraged the active participation
of civil society organizations, such as the Fiscal Policy Observatory and the
Observatory for the Rights of Children and Adolescents.
A series of dialogues on the budget including the Congress, the Social Front,
the Ministry of Economy and Finance, civil society, the mass media, UNICEF
and the Fiscal Policy Observatory took place between 2000 and 2004. Discussions
on the budget took place around the country. Among other issues, the
dialogues concluded that, first, foreign debt payments demanded a large share
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