Chile’s Digital Leap: OECD Recommends Overhaul of Public Sector Investment Strategy

Chile’s ambition to modernize its public administration is gaining traction through a comprehensive overhaul of how it manages digital government investments. The new OECD report, prepared by the OECD Directorate for Public Governance under the leadership of Elsa Pilichowski, Carlos Santiso, and Marco Daglio, with principal contributions from Felipe González-Zapata, Alex Seeman, and Julian Olsen, provides an incisive assessment of Chile’s digital governance. Developed in close cooperation with the Ministry of Finance, the Digital Government Secretariat (DGS), the Budget Office (DIPRES), and the Modernisation Secretariat, the study reveals that while Chile has long upheld strong public management traditions, its current digital transformation efforts face structural inefficiencies. These need urgent attention if the country is to realize the full benefits of digitizing public services in a fiscally constrained era.

Chile has already taken promising steps, including the 2024 establishment of the DGS under the Ministry of Finance, reflecting a commitment to strengthening leadership and coordination. The country’s Modernisation of the State Agenda 2022–2026 places digital transformation at the core of administrative reform. Yet, this ambition is challenged by fragmented planning, siloed execution, and weak post-implementation oversight. The OECD finds that although several digital investment tools exist, chief among them the EVALTIC value proposition mechanism, they function in isolation rather than as parts of a connected system. This disconnection hampers Chile’s ability to manage digital investments as strategic public assets.

EVALTIC: A Powerful Tool Trapped in a Narrow Frame

EVALTIC, Chile’s main tool for assessing digital project proposals, has become a widely accepted component of investment planning. It was designed to bring technical consistency and rigor to the formulation of public digital initiatives. However, the OECD notes that EVALTIC remains confined to the early stages of investment planning. Once projects receive technical approval, there is no mechanism to track how they are funded, procured, or implemented. Nor is there a process to assess whether they have achieved their intended benefits. As a result, valuable insights and data collected through EVALTIC are not feeding into strategic or operational decisions.

The report urges Chile to elevate EVALTIC into a comprehensive digital investment management framework that integrates budgeting, procurement, risk oversight, and post-project evaluation. Without this transformation, Chile risks continuing a cycle where digital investments are made without long-term visibility or impact assessment. Furthermore, the report calls for a tiered evaluation model, inspired by frameworks like Gartner’s Run-Grow-Transform model, to differentiate projects based on their strategic value and complexity.

Strategy Without a Compass: The Need for a National Digital Vision

One of the most striking gaps identified is the absence of a current National Digital Government Strategy (NDGS). The last such strategy expired in 2022, and in its place, agencies rely on fragmented references from the Digital Transformation Law, various budgetary rules, and the Modernisation Agenda. The OECD warns that in the absence of a coherent national digital vision, Chile risks misaligned investments, inconsistent service delivery, and inefficient use of public funds.

While a new NDGS is reportedly in development for 2025, the OECD urges Chile to accelerate its publication and ensure it articulates a unified blueprint to guide all digital investments across government. This should include clear prioritization principles, technical standards, and outcome-based targets. Drawing inspiration from countries like Australia and New Zealand, Chile could benefit from a centrally coordinated strategy that offers agencies flexibility while aligning them to shared digital infrastructure, such as digital identity systems and interoperable platforms.

Risk and Procurement: Two Critical Weak Links

Although Chile has made advances in cybersecurity, such as the introduction of the Framework Law on Cybersecurity and the National Policy for State Cybersecurity, it lacks a comprehensive approach to managing digital risks across government institutions. Currently, EVALTIC includes only basic risk considerations, and most public agencies do not follow standardized procedures to assess risks related to obsolescence, data security, or continuity of services. The OECD warns that without structured risk management protocols, Chile remains vulnerable to service disruptions and cyberattacks.

Similarly, the country’s procurement system, led by ChileCompra, is robust for conventional goods and services but falls short when it comes to sourcing digital technologies. The report points out the lack of agility, innovation incentives, and dynamic procurement mechanisms that are essential in the fast-paced world of digital transformation. The OECD recommends the introduction of Dynamic Purchasing Systems (DPS) and deeper market engagement strategies that would allow government institutions to build long-term partnerships with technology providers while promoting vendor diversity and avoiding lock-in.

Closing the Loop: Monitoring and Evaluation Must Catch Up

Perhaps the most underdeveloped area is the monitoring and evaluation of digital investments. Although Chile has mature performance management systems, including the Performance Management Program (PMG) and the User Experience Measurement System (MESU), these are not integrated into digital project oversight. Once a project passes through EVALTIC and receives funding, there is no structured way to trace whether it was implemented effectively or if it delivered the expected public value.

The OECD proposes the creation of a whole-of-government monitoring framework that connects systems like EVALTIC, SIGFE (budget execution), and MercadoPúblico (procurement). This would enable Chile to build a real-time digital investment portfolio, improve strategic decision-making, and enhance accountability. The report also calls for empowering oversight functions within DGS and DIPRES, equipping them with the tools, mandates, and resources necessary to track investments from inception to outcome.

With strong institutional foundations, political commitment, and external partnerships such as with the OECD and the Inter-American Development Bank, Chile is well-positioned to become a regional leader in digital governance. But this will require moving beyond technical assessments and fragmented projects toward a unified, strategic, and results-driven approach to public sector digital investment. The window of opportunity is open, but it demands bold integration, agile leadership, and the political will to drive sustained reform.