Publication: Peru : The Decentralization Process and its Links with Public Expenditure Efficiency
Date
2010-06-07
ISSN
Published
2010-06-07
Author(s)
World Bank
Abstract
Decentralization in Peru is an ongoing
process that is in its infancy and faces key challenges.
This study aims to take stock of the process and identify
these challenges. The main goal of the report is to help
think through these issues with a view of identifying
priorities and opportunities for fruitful engagement in this
area. Much of the stock-taking serves as an introduction to
the topic for the general reader and draws on what has
become by now extensive secondary literature. The report
distils the key challenges of the decentralization process
and adds value in three specific areas. A first distinct
contribution of this report is to highlight the importance
of political economy factors in explaining the ebbs and
flows of the decentralization process. Second, the report
provides new data on truly decentralized spending as opposed
to deconcentrated as well as on public spending per capita
across districts. Third, this report provides a novel
analysis of the efficiency of public spending across
departments in Peru. The report compiles measures of public
sector performance and efficiency for education, health, and
transport across all departments. The overall institutional
framework provides enough reasons for reconsideration an
area where the Bank could add value. To be clear, this
report does not call for new rushed legislative initiatives
to address the perceived shortcomings in the institutional
set up. What is called for is the creation of spaces for
inter-institutional and inclusive dialogue to help establish
a consensus on some basic principles. Only then will changes
to the current institutional framework be appropriate. The
mechanism to share natural resource revenues among levels of
government has contributed to obfuscate the decentralization process.
Citation
“World Bank. 2010. Peru : The Decentralization Process and its Links with Public Expenditure Efficiency. Public Expenditure Review (PER);. © Washington, DC. http://openknowledge.worldbank.org/entities/publication/8d1e7258-28fb-5b5b-98fd-ff526ad01f80 License: CC BY 3.0 IGO.”