2016/17 Knowledge Sharing Program with Guatemala Sharing Program 2016/17 Knowledge 2016/17 Knowledge Sharing Program with Guatemala: Policy Consultation for Development of Guatemala: Focusing on Transparency in Public Sector, Government Integrated Data Center and Microfinance for SMEs 2016/17 Knowledge Sharing Program with Guatemala 2016/17 Knowledge Sharing Program with Guatemala Project Title Policy Consultation for Development of Guatemala: Focusing on Transparency in Public Sector, Government Integrated Data Center and Microfinance for SMEs Prepared by Korea Development Institute (KDI) Supported by Ministry of Strategy and Finance (MOSF), Republic of Korea Prepared for The Government of the Republic of Guatemala In Cooperation with National Secretariat of Science and Technology (SENACYT) Ministry of Economy (MINECO) National Institute of Public Administration (INAP) Program Directors Kwangeon Sul, Executive Director, Center for International Development (CID), KDI Siwook Lee, Professor of KDI School of Public Policy and Management, Former Executive Director, CID, KDI Project Manager Song Chang Hong, Director of Planning and Evaluation, CID, KDI Project Officers Nayun Kang, Senior Research Associate, Division of Planning and Evaluation, CID, KDI Ji Yun Park, Research Associate, Division of Planning and Evaluation, CID, KDI Senior Advisor Sung-Ok Lee, Former President of Institute for Information Technology Advancement (IITA) of the Republic of Korea Principal Investigator Sung Gul Hong, Professor, Kookmin University Authors Chapter 1. Sung Gul Hong, Professor, Kookmin University Chapter 2. Kyoung Yul Bae, Professor, Sangmyung University Chapter 3. Choong Lyol Lee, Professor, Korea University English Editor IVYFORCE Government Publications Registration Number 11-1051000-000782-01 ISBN 979-11-5932-241-9 94320 ISBN 979-11-5932-227-3 (set) Copyright ⓒ 2017 by Ministry of Strategy and Finance, Republic of Korea Government Publications Registration Number 11-1051000-000782-01 2016/17 Knowledge Sharing Program with Guatemala: Policy Consultation for Development of Guatemala: Focusing on Transparency in Public Sector, Government Integrated Data Center and Microfinance for SMEs Preface Knowledge is a pivotal driver of growth and the fruit of all endeavors dedicated to socio-economic development. Accordingly, knowledge sharing has become an essential tool in strengthening nations’ capacity to design and execute policies and programs. On the global front, the UN is making efforts through its Sustainable Development Goals (SDGs) to underscore the role of both knowledge and knowledge sharing in tackling sustainable development issues and in establishing and enhancing global partnerships. Indeed, knowledge laid the foundations for Korea’s remarkable transformation from a poor agro- based economy into an industrialized nation with an open and democratic society. And the process, though arduous, has enabled Korea to accumulate invaluable and practical lessons not found in conventional textbooks. Now, as a global economic leader, Korea is working with the international development community and partner countries to identify key development challenges and solutions by sharing its tangible know-how and experience. The Knowledge Sharing Program (KSP) was initiated in 2004 by the Ministry of Strategy and Finance (MOSF) and is implemented by Korea Development Institute (KDI). The program plays a vital role in further expanding knowledge sharing as well as in strengthening government partnerships with low to high income economies. As of this year, 940 research studies have been conducted with 59 partner countries. And in 2016, KSP policy consultations and capacity building workshops were organized with 28 partner countries including new partner countries such as Jordan and the Sub-Saharan Africa Partnership for Skills in Applied Sciences, Engineering and Technology (PASET). The 2016/17 KSP with Guatemala was undertaken by MOSF and the National Secretariat of National Secretariat of Science and Technology (SENACYT) of the Republic of Guatemala to support the formulation of the “Policy Consultation for Development of Guatemala: Focusing on Transparency in Public Sector, Government Integrated Data Center and Microfinance for SMEs.” To that end, KSP and Guatemala engaged in a range of collaborative efforts including exchanging development experiences, conducting joint studies, and designing a policy action plan in line with the country’s development targets. It is with great optimism for the future of Guatemala that the results of the 2016/17 KSP are presented. I firmly believe that KSP will serve as a stepping stone to further elevate the mutual learning and economic cooperation between both our countries, and hope it will positively impact Guatemala’s attainment of its goals for sustainable development. I wish to convey my sincere gratitude to Senior Advisor Dr. Sung-Ok Lee, Principal Investigator Prof. Sung Gul Hong as well as project consultants Prof. Kyoung Yul Bae and Prof. Choong Lyol Lee for their extensive contributions. I am also grateful to Executive Director Dr. Kwangeon Sul, Project Manager Dr. Song Chang Hong, Project Officer Ms. Nayun Kang and all members of the Center for International Development (CID) for their hard work and dedication to this program. Lastly, I extend my warmest thanks to the Guatemalan collaborates, SENACYT, Ministry of Economy (MINECO), National Institute of Public Administration (INAP) and related agencies, project coordinators, and participants for their steadfast effort and support. Joon-Kyung Kim President Korea Development Institute Contents 2016/17 KSP with Guatemala ............................................................................................... 012 Executive Summary ............................................................................................................. 015 Chapter 1 Increasing Transparency and Open Government: Lessons from Korea Summary .......................................................................................................................... 026 1. Introduction ............................................................................................................ 028 1.1. Demand Identification ......................................................................................... 028 1.2. Research Design and Methodologies ..................................................................... 030 1.3. Previous Studies on Corruption and Transparency in Latin America ............................. 030 1.4. Organization of the Chapter ................................................................................ 033 2. Policies on Transparency and Open Government in Guatemala ........................................ 034 2.1. Background ....................................................................................................... 034 2.2. Brief History of Anti-Corruption Policies and Main Outcomes ..................................... 037 2.3. Major Organizations, Laws, and Institutions ............................................................ 039 2.4. Open Government Policies and Outcomes .............................................................. 047 2.5. Conclusion ......................................................................................................... 054 3. Korean Experiences with Transparency and Open Government ........................................ 055 3.1. Brief Overviews of Korea’s Efforts for Eradicating Corruption ..................................... 055 3.2. Current Anti-Corruption Policies in Korea ................................................................ 057 3.3. e-Government and Open Data Policies in Korea ...................................................... 062 4. Results of Online Survey on Corruption in Guatemala ..................................................... 067 4.1. Summary of the Online Survey .............................................................................. 067 4.2. Summary of Findings ........................................................................................... 069 5. Conclusions and Policy Recommendations .................................................................... 080 5.1. Lessons from the Korean Experience ...................................................................... 080 5.2. Implications from the Online Survey ....................................................................... 082 5.3. Policy Recommendations ..................................................................................... 084 References ........................................................................................................................ 090 Appendices ....................................................................................................................... 092 Chapter 2 Guatemala e-Government Development: Focusing on Establishment of GIDC Summary .......................................................................................................................... 112 1. Introduction ............................................................................................................ 114 1.1. Background ....................................................................................................... 114 1.2. Research Range .................................................................................................. 115 1.3. Construction of Research ....................................................................................