Frequently Asked Questions on Human Rights-Based Approach

Increasing transparency and social spendingin public budgets in EcuadorDuring the late 1990s Ecuador experienced a seriousmacroeconomic crisis, which resulted in sharply decreasedspending on social programmes. Poverty rates doubledbetween 1998 and 1999, and spending on health andeducation dropped by around 25 per cent. Concerned at thesecuts, which were especially devastating for Ecuador’s poorestand most vulnerable families, civil society organizations withthe support of the United Nations Children’s Fund (UNICEF)began to analyse the national budget—working with datafrom the Ministry of Finance and Economy and through ateam of respected economists. The objective of this exercisewas to help legislators and the public understand how thebudget functions and what priorities it reflects. The goal wasto encourage the creation of more equitable public policiesbased on a consensus regarding society’s obligation to fulfilthe human rights of all its members and to alter spendingpriorities.accountability, investment in social services, participation byall people in decisions that affect them, as well as access toinformation, and a more efficient and effective public sector.Lessons learnedMessages are much more likely to produce change if they arebacked up by data and accompanied by realistic suggestionsabout how change can be accomplished. For example, byfocusing on the inequalities inherent in Ecuador’s tax structure,the economic team was able to demonstrate where the fundsneeded for social programmes might be obtained. Governmentand society alike perceived that priorities could be shifted tobenefit society as a whole.Source: OHCHR/UNDP Seminar on good governance practices for thepromotion of human rights, Seoul, Republic of Korea, 15-16 September 2004,http://www.ohchr.org/english/issues/development/governance/seminar.htm.The budget analysis revealed that spending on socialprogrammes was plummeting. For example, in 1999investment in health dropped from US$ 198 million to US$96 million. Spending on social sectors was disproportionatelylow compared to allocations for debt repayment and othernon-social sectors. In addition, certain regions—particularlythose with a majority indigenous population—were not gettingan equitable share of social benefits.ResultsOver the past four years a broad cross section of socialgroups, with the support of UNICEF, and the executive andlegislative branches of government have collaborated tosharpen budget analysis and increase social spending on poorand vulnerable groups. Social spending grew to 23.2 per centof Ecuador’s budget and the issue of public spending wassubject to widespread, participatory national debate. It wasopenly discussed in the media and the legislature, and by theprivate sector and Ecuador’s active indigenous and labourmovements. Public discussion has also focused on how tosustain increased social spending, examining the impact of theforeign debt and heavy reliance on income from oil exports,and overcoming inequities in the national tax structure.Ecuador’s political leadership has worked with civil societyto strengthen a national monitoring system—the IntegratedSystem of Social Indicators of Ecuador (SIISE)—to trackprogress in social investment both nationally and by region.The programme led to increased government transparency and13