Peru : The Decentralization Process and its Links with Public Expenditure Efficiency

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 vie...

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Bibliographic Details
Main Author:	World Bank
Format:	Public Expenditure Review
Language:	English en_US
Published:	Washington, DC 2013
Subjects:	ACCOUNTABILITY ADMINISTRATIVE COSTS ADMINISTRATIVE DECENTRALIZATION ALLOCATION ALLOCATION OF RESPONSIBILITIES AMALGAMATION ANNUAL BUDGET ANNUAL PLANS ARTICLE ASSETS ASSIGNMENT OF EXPENDITURES ASSIGNMENT OF RESPONSIBILITIES AUTONOMY AUTONOMY OF SUB-NATIONAL GOVERNMENTS BUDGETARY RESOURCES CANDIDATES CAPACITY BUILDING CAPACITY BUILDING ACTIVITIES CAPACITY CONSTRAINTS CAPITA INCOME CAPITAL EXPENDITURES CAPITALS CENTRAL AUTHORITIES CENTRAL GOVERNMENT CENTRAL GOVERNMENTS CENTRALIZING CITIES CIVIL SOCIETY CIVIL SOCIETY ORGANIZATIONS CIVIL SOCIETY PARTICIPATION COMMODITY PRICES COMMUNITY PARTICIPATION CONSTITUENT CONSTITUTIONAL AMENDMENT CONSTITUTIONAL REFORM CORPORATE INCOME CORPORATE INCOME TAX CURRENT EXPENDITURES DEBT DECENTRALIZATION DECENTRALIZATION PROCESS DECISION-MAKERS DECONCENTRATION DISCRETIONARY APPROACH DISTRICT DISTRICT MUNICIPALITIES DISTRICTS DIVISION OF LABOR DIVISION OF RESPONSIBILITIES ECONOMIC POLICY ECONOMIC STABILITY ECONOMIES OF SCALE EFFICIENCY IN PUBLIC SPENDING EFFICIENCY OF PUBLIC SPENDING EFFICIENT REGIONS EFFICIENT USE ELECTION ELECTIONS ENTITLEMENTS EXCESSIVE FRAGMENTATION EXECUTIVE BRANCH EXPENDITURE EFFICIENCY EXPENDITURE PER CAPITA EXPENDITURE RESPONSIBILITIES FEDERAL COUNTRIES FINANCIAL SYSTEM FISCAL DECENTRALIZATION FISCAL INCENTIVES FISCAL NEUTRALITY FISCAL RESPONSIBILITY FISCAL RULES FISCAL STABILITY FISCAL TRANSFERS GOVERNMENT TRANSFERS HEALTH ASSISTANCE HORIZONTAL EQUITY INCOME LEVELS INCOME TAX INTERGOVERNMENTAL COORDINATION INTERGOVERNMENTAL FISCAL RELATIONS INTERNATIONAL DEVELOPMENT INVESTMENT BUDGET LAWS LEGAL FRAMEWORK LEGISLATION LEGISLATIVE POWER LEGISLATORS LEVEL OF GOVERNMENT LEVELS OF EFFICIENCY LEVELS OF GOVERNMENT LEVELS OF PUBLIC SPENDING LOCAL AUTHORITIES LOCAL DEVELOPMENT LOCAL GOVERNMENT LOCAL GOVERNMENTS LOCAL MANAGEMENT LOCAL POLITICIANS LOCAL POPULATIONS LOCAL PROPERTY TAXES LOCAL PUBLIC EXPENDITURES LOCAL TAX MAYOR MINISTRY OF ECONOMY MINISTRY OF EDUCATION MUNICIPAL MUNICIPAL GOVERNMENTS MUNICIPAL LEVEL MUNICIPALITIES NATIONAL DEVELOPMENT NATIONAL PARTIES NATIONAL SERVICE PROVIDERS NATIONAL TAXES NATURAL RESOURCES OBJECTIVES OF DECENTRALIZATION ORGANIZATIONAL STRUCTURE PARTISAN REASONS PERSONAL INCOME PERSONAL INCOME TAX POLICY MAKING POLICY-MAKERS POLITICAL DECENTRALIZATION POLITICAL PARTIES POLITICAL PARTY POLITICIANS PORK-BARREL POVERTY REDUCTION PRIME MINISTER PRODUCTIVITY PROGRAMS PROVINCE PROVINCES PUBLIC CAPITAL PUBLIC EXPENDITURE PUBLIC EXPENDITURE DATA PUBLIC EXPENDITURE EFFICIENCY PUBLIC FINANCIAL MANAGEMENT PUBLIC FUNDS PUBLIC GOODS PUBLIC HEALTH PUBLIC INVESTMENT PUBLIC MANAGEMENT PUBLIC RESOURCES PUBLIC REVENUES PUBLIC SECTOR PUBLIC SECTOR EFFICIENCY PUBLIC SECTOR MANAGEMENT PUBLIC SECTOR PERFORMANCE PUBLIC SERVICE PUBLIC SERVICE DELIVERY PUBLIC SERVICES PUBLIC SPENDING REDISTRIBUTION REGIONAL ADMINISTRATION REGIONAL DISPARITIES REGIONAL ECONOMIES REGIONAL GOVERNMENT REGIONAL GOVERNMENTS REPRESENTATIVES REVENUE SHARING REVENUE SOURCE REVENUE SOURCES SALES TAX SECTORAL POLICIES SECTORAL POLICY SERVICE DELIVERY SOCIAL POLICY SOCIAL PROGRAMS SOURCES OF FINANCE SOURCES OF REVENUE STRUCTURAL ADJUSTMENT SUB-NATIONAL SUB-NATIONAL AUTHORITIES SUB-NATIONAL EXPENDITURES SUB-NATIONAL GOVERNMENT SUB-NATIONAL GOVERNMENTS SUB-NATIONAL UNITS TAX TAX BASES TAX REVENUES TECHNICAL ASSISTANCE TOTAL PUBLIC SPENDING TOTAL SPENDING TRANSFER OF RESOURCES TRANSFER OF RESPONSIBILITIES TRANSPORT UNINTENDED CONSEQUENCES UNITARY SYSTEMS
Online Access:	http://documents.worldbank.org/curated/en/2010/06/16373412/peru-decentralization-process-links-public-expenditure-efficiency http://hdl.handle.net/10986/12894

Description
Summary:	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.

Peru : The Decentralization Process and its Links with Public Expenditure Efficiency

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