Quito: between Noboa's reform and bureaucratic cannibalism
President Noboa's recent proposal to the National Assembly aimed at enhancing the efficiency of decentralized government spending highlights the outdated administrative model of Quito, pointing to a significant misallocation of funds.
Ecuador's President Noboa has recently sent a bill to the National Assembly intended to ensure the sustainability and efficiency of spending by Decentralized Autonomous Governments (GAD), bringing to light the outdated administrative structure of Quito. The proposed legislation mandates that municipalities allocate 70% of their budgets to investment and only 30% to operational expenses. This initiative underscores the financial vulnerabilities of the capital, where an oversized bureaucratic system has historically consumed a disproportionate share of the budget, leading to inefficient spending practices.
The inefficiency in Quito's budget management is attributed to the paralysis of the city, for which a lack of effective leadership in the Metropolitan Council bears significant responsibility. Council members have become more focused on populism and their ambitions for mayoral positions rather than fulfilling their legislative roles. This neglect has resulted in the failure to draft the Autonomic Statute, a legal framework that could empower Quito to evolve beyond its current municipal status and help address deep-rooted bureaucratic inefficiencies.
Overall, Noboa's legislative proposal serves as a critical examination of Quito's governance, pushing for much-needed reforms amidst a landscape characterized by excessive bureaucratic structures. Whether this initiative can catalyze substantial changes in fiscal policy and administrative efficiency remains uncertain, but it signals an urgent call to reevaluate how public resources are managed.