Guest blog by Lea Gimenez

We often think that the solution to all problems lies in spending more. But in the public sector, spending is just as important as spending well. And to spend well, there is a fundamental prerequisite: solid institutions.    

A good example of the close relationship between institutional quality and quality of spending is citizen security. In Latin America and the Caribbean, crime costs us 3.5% of regional GDP each year. That is roughly the same amount we invest in essential infrastructure such as roads, airports, or hospitals. It is also half of what we spend on health or education. In the last decade, the countries of the region have increased their spending on security by 34%. But the needle of crime hasn’t moved. Furthermore, in the countries where the fiscal effort was the highest between 2010-2012, only a few were commensurately successful in reducing crime and insecurity. In most cases, crime increased.  

Solid institutions so that the spending becomes an investment: The case of the public security sector

If there is a key sector where government effectiveness is essential, that is undoubtedly citizen security. Latin America and the Caribbean is the only region in the world where homicide is the main external cause of death. And yet it is a sector where institutions are highly undervalued. According to the Latinobarómetro, less than 40 percent of the region’s citizens trust the police and justice, compared to 65% in Europe. 

How can strong institutions reverse that trend?

1. More coordination equals more efficiency 

Security challenges are rooted in multidimensional problems (social, economic, educational, urban …). An effective security policy requires the coordination of many institutional actors: police, prisons, courts, schools, health centers … An interesting tool that is beginning to be implemented in some countries are delivery units (strategic management units), which eliminate silos and favor the implementation of transversal public policies.  

2. A culture (and a technological system) that allows information to be shared. 

In the case of complex public policies, it’s essential to promote interoperability platforms that allow collaboration between all the institutions involved. In the criminal justice system, for example, it has been shown that trials are resolved earlier in places where there are interoperable platforms that instantly link data from courts, police, and prison systems.  

3. Digital transformation is a range of opportunities.

Technology and innovation are making it possible to achieve levels of precision in management that until recently were unfeasible. What advances has the digital bureaucracy brought to citizen security in particular? In a region where half the crimes go unreported, the new virtual police stations are encouraging victims to report more. Or the digitization of justice, which ranges from the digital processing of files to the introduction of virtual trials. Undoubtedly, progress that can decongest the region’s prisons, where 44% of the prisoners are in preventive detention. Some countries like Chile, in fact, have been building digital justice systems for several years. Others, such as Peru and Colombia, have prioritized the digitization of their police systems on their agendas.   

4. Quality data is fuel for evidence-based policies

The digital revolution has made an unprecedented volume of data available to governments. However, although information and technology already exist, public institutions do not always have the capacity to analyze the data and incorporate the conclusions into public decision-making. In terms of security, for example, more and more police forces are using big data to understand which are the “hot spots” of crime and, based on that, assign police equipment more strategically.  

5. Human resources are still the most important.

No matter how well designed a public policy may be, a large part of the success lies in the fact that the institutions have the right human talent to implement it and bring it to fruition. In the case of citizen security, the incorporation, training and retention of police officers are essential. The example of Honduras has been illustrative: it invested in technological equipment, professionalized the security forces and adopted a community philosophy, and promoted the inclusion of a greater number of women in the police force. In five years, the homicide rate dropped by half.  

Major challenges, encouraging progress

Reducing the high crime rate is one of the great challenges that we urgently need to address. Latin American citizens not only pay the consequences of living in the most violent region in the world… they also have to live with the fact that many crimes are never solved. In 2016 there were 24 convictions for every 100 victims, compared to 78 in Europe.

A good example of the close relationship between institutional quality and quality of spending is citizen security. In the last decade, the countries of the region have increased their spending on security by 34%. But the needle of crime has not moved.  

In public policy, opening the State’s wallet to leverage reforms is important but not enoughIn addition to a good policy design, it’s crucial to have an institutional ecosystem that can bring the measures to fruition. The countries of Latin America and the Caribbean need to spend better and, for that, it is necessary to have solid institutions and strategic plans that set out a clear roadmap. The good news is that many countries are making significant efforts to modernize their structures. And that, without a doubt, is an encouraging development. 

The original version of this article was published in the El País and replicated in the Inter-American Development Bank’s Blog Gobernarte.

Photo by Neil Thomas on Unsplash