Maria Gonzalez de Asis1
Reducing Corruption: A Search for Lessons of Experience
May 18th,1999
DRAFT
Campo Elias Case Study
Campo Elias is a municipality located in the state of Merida, Venezuela. The
municipality has an area of 572 km2. The population of 93,000 consists of 89 percent
urban and 11 percent rural inhabitants. It is estimated that 39 percent of the population is
below the poverty level. In the past, corruption adversely affected the provision and
maintenance of services, as well as the quality of life, in Campo Elias.
The administrative and regulatory framework that existed previously in Campo Elias
generated confusion. Due to unpredictable procedures and the duplication of functions,
there were no accountable or transparent institutionalized methods for the provision of
public services. The lack of accountability and unregulated discretionary behavior of
local officials served as perverse incentives for corruption. Public and private financial
systems, as well as the public procurement system, were all vulnerable to corruption.
Citizens often believed that bribery was the most effective way to request and receive
services and they viewed the public sector as an institution for personal enrichment.
Moreover, citizens were not motivated to participate in the public sector.
The World Bank Institute chose Campo Elias as a pilot site for learning and
disseminating lessons about establishing credible and transparent municipal
governments.2 The purpose of the pilot project was to provide the municipality with the
tools to implement an integrated action plan for institutional reform. The program was
designed to create a transparent local government by enhancing credibility and
1
The presentation is based on the municipal technical assistance program in the World Bank. Plase do not cite
paper without permission of the author as it is work in progress. Maria Gonzalez can be reached at (202)
4737950 and mgonzalezasis@worldbank.org.
2
The selection process for determining pilot participants was as follows: Venezuela was chosen because the
World Bank was active in the supervision of the Municipal Technical Assistance component of the
PROMUEBA project. Furthermore, there was political will to support the pilot. FUNDACOMUN, the
executing agency for a World Bank technical assistance loan to Venezuela, identified municipalities that were
implementing participatory initiatives and integrated municipal information systems. In order to gauge the
existence of political will for reform, FUNDACOMUN met with 60 of 330 Venezuelan mayors to explain the
pilot project. It was stressed that respective governments would need to be truly open in order for the project to
succeed. Out of the 60 mayors, only 20 participated in the first regional workshop to discuss and share their
experiences with regard to reform. As a result, three municipalities signed letters of agreement to undertake
reforms and participate in the pilot initiative. Following visits to the three municipalities, and based on field
assessments, Campo Elias was selected. Given the nature and objectives of the pilot program, World Bank staff
determined that the two remaining municipalities presented an unreasonable risk.
accountability; promoting citizen participation; and encouraging government and civil
society to share responsibility for service delivery. Participants were equipped with the
knowledge and skills needed to take crucial steps toward implementing a strategy for
reform in Campo Elias.
The pilot program in Campo Elias included a diagnostic study which identified problems
throughout the municipality, and municipal workshops which yielded a detailed work
plan for reforming government. The work plan was successfully implemented within nine
months after the workshops. The action plan included the development of a procedural
manual, an organizational information system, and a public budgetary hearing program;
the creation of the Office of Public Affairs and a Tripartite Auditing Commission; and the
enactment of municipal ordinances. The impact of the implementation of the program is
currently being evaluated. The Campo Elias pilot demonstrated that combating corruption
should not be considered an end within itself, but rather a means for reforming
institutions.
Diagnosis of the Problem
A municipal customer perceptions survey was conducted in Campo Elias during June and
July of 1998. This survey collected data on enterprise and citizen perceptions of service
delivery, and the integrity and credibility of municipal government. The survey
measured perceptions about efficiency, efficacy, the quality and breadth of information
supplied by local authorities for public use, and corruption - all related to the provision of
key services. The diagnostic study concluded that the main factors affecting perceptions
were rooted in two areas: 1) the lack of efficiency, the excessive complexity and the
unpredictability of administrative procedures used to grant permits; and 2) the lack of
disclosure regarding availability of public information, as well as the lack of existing
channels for effectively supplying the information.
Participatory Diagnostics
The results of the survey were presented at a workshop held in participation with the
community. Strategies for attaining municipal reform were developed based upon survey
findings and through participatory and group method consensus. Working groups
identified barriers to reform which had been noted in survey responses, particularly lack
of information and accountability, and complex regulatory frameworks. Each team
identified the actors and resources available to implement a strategy to address these
barriers, as well as to stem corruption and reform municipal government. The teams were
then asked to propose a mechanism for removing barriers and achieving municipal
government reform. They devised solutions and offered methods for measuring and
monitoring change through an action plan.
Action Plan
An action plan is an instrument by which the local government can initiate a strategy to
develop an institutional arrangement and incentives to create an open and transparent
system.
In the Campo Elias Action Plan, priority was placed on a) improving administrative
procedures in the following areas: 1) construction permits; 2) industrial and commerce
permits; 3) certification of tax payments; b) finding a mechanism to develop a more
optimal information system, to include participatory and performance budgeting and
public information campaigns; c) creating a public complaint mechanism; d)
programming and oversight of public expenditures; and e) improving structural reforms.
Implementation of the Action Plan
1. Regulatory framework: Complex and inefficient administrative procedures
provide incentives for corruption
Problem
Solution
Complex and inefficient administrative procedures
Develop a standardized, integrated system of procedures
As indicated above, the diagnostic study concluded that one of the main factors affecting
corruption was the complexity and unpredictability of administrative procedures.
Inefficient procedures create confusion and breed corruption. Therefore, the action plan
proposed the development of several tools to simplify administrative procedures for
obtaining construction, industrial and commerce permits. Two particular tools included
an administrative manual and a computerized data system. A manual to simplify,
decrease and standardize administrative procedures was created. This manual assisted in
improving coordination among offices, avoiding duplication of duties, and delimiting
duties, thus speeding the permit process. All administrative data was integrated into a
computerized data system which also includes tax registers and estimates.
2. Information Systems: Accountability and Transparency
Problem
Solution
Lack of information serves as a barrier to accountability and transparency
Create channels for access to information in order to guarantee
accountability and transparency
The survey revealed the lack of existing channels for the disclosure and supply of public
information and the provision of services. In order to assure public access to information,
a participatory public budgetary hearing program and planning system called Public
Audience 2000 was created. The public hearing is a participatory mechanism allowing for
the elaboration of the municipal budget in a citizen forum. In Campo Elias, citizens
identified and prioritized their needs; co-managed municipal resources; controlled and
evaluated the mayor's commitments; and created opportunities for participation,
accountability and transparency.
Another mechanism to assure accountability and transparency is providing access to
information through computerized data systems. A software package was designed and
implemented in order for citizens to access information on transactions carried out by the
municipality. Individuals may visit the Office for Development and Citizen Participation
and, if necessary, receive staff support in order to monitor municipal transactions
including public bidding, acquisitions, and execution of public works by computer. This
program aims to achieve a more transparent government through public control and
monitoring of transactions.
An additional method implemented to achieve accountability and transparency was the
creation of a Tripartite Auditing Commission for monitoring public budgetary hearings.
This Commission is comprised of citizen representatives, local legislators, and local
municipal officials. The Commission has two objectives. The first objective is to
facilitate community participation. The second objective is to oversee and audit public
works and social programs, whether administered directly or on a contract basis.
4. Citizen Participation
Problem
Solution
1. Government does not provide proper vehicles for citizen participation
2. Lack of interest on the part of civil society to participate in government
decisions
1. Legalize mechanism for guaranteeing a role for citizen participation
2. Provide citizens with adequate incentives for understanding the
importance of participating in government decisions
Program for Citizen Involvement in Public Budgeting
This program was created in 1998 to facilitate citizen participation in the municipal
budgeting process. The Mayor presents a preliminary budget to citizen participants. In
keeping with preliminary budget figures, the citizens break into working groups to
discuss and prioritize their needs. Participatory budgeting workshops are then held in
each of the seven neighborhood association districts, in order to determine their
respective shortlist of budget priorities. Shortlists are presented to technical specialists at
a participatory workshop and individual projects or programs are discussed and tested for
feasibility and cost. Proposals are again presented to the municipality by neighborhood
association district representatives in order to finalize budget recommendations. Projects
are selected by the Tripartite Auditing Commission. The mayor must provide a written
public rendering of the status of the budget and accompanying projects every three
months.
Tripartite Auditing Commission
This Commission was created in January 1999. The membership is comprised of three
citizen representatives elected by the neighborhood association districts, one local
legislator, and two local municipal officials appointed by the mayor. Nominees to the
Commission serve for one year. The Commission holds four public sessions per year in
order to keep the community informed about the budget implementation process.
Office for Development and Citizen Participation
This Office was inaugurated in February 1999. It contains two divisions: The Office of
Information and the Office of Citizen Participation. The Office of Citizen Participation
has three units: Social Development, Complaints, and Citizen Participation. The Office's
objectives are: 1) to create channels for dialogue between government and civil society;
2) to promote citizen participation in government and to provide an actual site for citizens
to engage in participatory activities; 3) to organize, systematize and disseminate
information about municipal services, municipal officials, and administrative procedures
requested by citizens; 4) to respond to citizen complaints in a timely fashion; and 5) to
serve as focal point for organizing anti-corruption campaigns.
Guaranteeing Free Access to Public Documents
In order to facilitate accountability and transparency and the participation of civil society
in government, an ordinance was implemented to make all municipal documents
available to the public. Citizens may remain abreast of municipal policies, programs, and
activities by reviewing documents and information such as the disclosure of assets by
upper management, council members and the mayor; performance indicators for the
delivery of key services; tendering procedures; and the annual budget program available
through the Office of Information.
"Controlling Corruption"
"Controlling Corruption" is a service which tracks municipal transactions via the
Internet. All enterprises providing goods or services to or on behalf of the municipal
government (above a threshold cost) must register and provide status reports at the site.
Failure to do so results in sanctions. Citizens who do not have access to the Internet may
gain access through the Office of Information.
All of the above measures have been institutionalized and legalized through the
enactment of municipal ordinances. These ordinances are the juridical instrument for
citizen participation in Campo Elias.
5. Monitoring and Evaluation
Beyond internal monitoring techniques such as public budgetary hearings and the
computerized public works monitoring system, an external monitoring tool was utilized.
A one-day seminar targeted at mayors, city council members, and municipal authorities
of Venezuela was held in Merida. The purpose of the seminar was to monitor, evaluate,
and follow up on the implementation of the Campo Elias Action Plan by using
participatory methodologies. By attending the seminar, participants were able to provide
feedback to the municipal government and citizens of Campo Elias on the continuing
government reform effort. These officials also gained valuable information and skills to
help determine how such a reform program could be replicated or adapted in their
respective municipalities. Specifically, the participants shared evaluations of the
following instruments: Office for Development and Citizen Participation, the Tripartite
Auditing Commission, the Organizational Information System, and municipal
ordinances.
Following the implementation phase, a second municipal integrity and customer
perception survey was conducted to evaluate the impact of the municipal reform program
in Campo Elias.
Impact and Lessons Learned
Although program impacts are currently being evaluated, it is clear that the issues of
transparency and efficiency are strategic entry points for addressing local government
reform. These issues are also a key feature in enhancing public sector credibility and
legitimacy. In the case of Campo Elias, increasing public sector credibility created a
positive image of the municipality and enabled citizens and government to more
effectively govern, utilize resources, provide services and increase the community’s
overall quality of life. Lessons learned from the pilot program include the following:
Political will
Political will is a crucial condition for achieving institutional reforms and, in
particular, for creating accountable and transparent systems and curbing corruption.
While political will throughout all levels of government is indispensable,
comprehensive institutional reform and the development of an integrated framework
to fight corruption at the municipal level is impossible without local political will.
Throughout each phase of the pilot, Campo Elias demonstrated strong political will
and dedication to support and guarantee the sustainability of institutional reforms.

Using surveys as a method for raising awareness and designing reforms
The diagnostic survey conducted in Campo Elias was a useful and effective tool for
identifying specific problems correlated with corruption and the shortcomings of a
municipal government that is not accountable and transparent. Identifying problems
through participatory surveys raised awareness and created an optimal environment
for change. The survey was conducted by independent consultants outside of
government. This lent credibility to the reform effort and provided the momentum for
meaningful progress toward curbing corruption and reforming government.

Deficient regulatory frameworks create confusion, increase arbitrary discretion, and
serve as incentives for corrupt behavior.
The perverse incentives of deficient regulatory frameworks and administrative
procedures generate potential foci for corruption while diluting accountability.
Administrative procedure reform in Campo Elias has had a great impact among
citizens.
Functional responsibilities are now clearly delineated. Incentives to engage in bribery
in order to more quickly obtain permits have been removed. Citizens are aware of the
fees that can be requested by providers; and due to the consciousness raised amongst
citizens through participatory mechanisms developed during the pilot program, most
people are now aware of the steps that must be followed whenever administrative
procedures are involved. Those who are not familiar with administrative procedures
can rely on the Office of Information as an accountable and transparent source for
obtaining information and assistance.

The aura of secrecy surrounding local government reinforced public perception of
potential wrongdoing, thereby increasing incentives for corruption and decreasing
incentives to generate and save municipal resources. In addition, the complexities of
obtaining information served as a disincentive for citizens to demand a transparent
and accountable government.

The information system reform in Campo Elias has had a significant impact on
government and civil society. A crucial condition for building efficient, accountable
and transparent systems at the local level is the simplification and accessibility of
information. Participatory workshops, information campaigns, and the Office of
Information's computerized data system provide streamlined, accessible information
for public consumption, thus increasing the probability for transparency and
accountability.
Making information available to the public is a necessary, albeit insufficient, step in
building transparency in local government. A participatory process is necessary in
order to assure accountability and reinforce health citizen - government relations.
Participatory workshops are a key tool in eliciting strong interest on the part of civil
society to understand administrative organization. Such forums enable citizens to
improve the quality of municipal management.
The participatory methodology used in the Campo Elias workshops increased
transparency, credibility and the capacity to address municipal problems. With the
inception of a participatory budgetary public hearing program and system, civil
society has become an integral part of the local decision-making system. Now the
citizens of Campo Elias decide the manner in which local government expenditures
are allocated. Citizens understand that putting an end to bribery frees up financial
resources that could otherwise be allocated to essential social services. Citizens are
now more satisfied with municipal services and complain less as a result of the
appreciation of the fact that prioritization and trade-offs are necessary when working
with a limited budget. Because citizens are involved in defining priorities and
determining trade-offs, they demand efficiency in the execution of projects. As
stakeholders, they have been empowered to care about projects and monitor their
performance. The credibility of the mayor and municipality has greatly improved. In
turn, the propensity for citizen participation in government and the sustainability of
institutional reforms has increased.