Paraguay is fighting corruption with High-Tech

IDB and Microsoft help Paraguay prevent corruption with advanced technologies

Paraguay, the Inter-American Development Bank (IDB), and Microsoft announced on July 6th the implementation of an early warning system aimed at helping Paraguay prevent corruption by detecting indicators of fraud in public procurement, according to a press release.

The system, also known as the “red flags” project, is the result of collaboration between the IDB and Microsoft to help governments fight corruption, increase transparency, and foster integrity throughout Latin America and the Caribbean.

Paraguay’s National Anticorruption Secretariat (SENAC) helped promote this red flag system, and the National Directorate of Public Procurement (DNCP) and other Paraguayan government actors also participated in this initiative and provided technical leadership.

Paraguay’s red flags project

The government will implement in stage Paraguay’s red flags project. Microsoft’s Anti-Corruption Technology and Solutions (ACTS) and the IDB’s Transparency Fund are supporting the program. In addition, it uses the Bank’s experience in transparency and integrity, and Microsoft’s technological capacity to predict and identify potential inefficiencies, as well as fraud and corruption risks in procurement and public contracts.

The project is based on the Open Contracting Data Standard (OCDS) and seeks to integrate analytical tools and artificial intelligence components to help Governments identify risks of fraud and corruption, generating alerts and highlighting questionable activities.

This collaboration with Paraguay has focused on the development of an early warning system and will contribute to improving the RindiendoCuentas de Paraguay platform. This tool was built from the MapaInversiones platform, which seeks to guarantee the transparency and efficiency of investments and public expenditures.

Paraguay, with IDB support, developed an early warning system. The current project is the result of a series of advances made by these institutions, to guarantee greater responsibility in public investments. In addition, this will contribute to improving the monitoring of public resources destined to address the health emergency due to COVID19.

In April 2021, the president of the IDB, Mauricio Claver-Carone, and the president of Microsoft, Brad Smith, reinforced the alliance between both organizations to help create and provide innovative technology solutions that empower governments to prevent and control corruption.

This alliance is part of Microsoft’s ACTS initiative, which is committed to empowering governments to reduce corruption through cloud computing, data visualization, artificial intelligence, machine learning, and other emerging technologies.

Vision 2025: Improving public institutions

Strengthening good governance and improving public institutions is one of the strategic objectives of “Vision 2025”, the IDB’s plan for regional recovery and sustainable and inclusive growth. The public sector’s ability to take advantage of digitization and new technologies, as well as its ability to promote public-private partnerships, will be key to progress in this area.

The Inter-American Development Bank (IDB) is one of the main sources of long-term financing for economic, social, and institutional projects in Latin America and the Caribbean. In addition to loans, grants, and credit guarantees, the IDB conducts cutting-edge research projects to provide innovative and sustainable solutions to the most pressing problems in our region. Created in 1959 to help accelerate progress in its developing member countries, the IDB works every day to improve lives.

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