Reconstruction exposes weak local capacity in Peru

Subject

Local government weaknesses.

Significance

Deficiencies in subnational tiers of government, including widespread corruption, threaten to frustrate government promises of effective action to deal with reconstruction following last month’s extensive flooding. Traditionally highly centralised, Peru has undergone extensive decentralisation since the new millennium. However, oversight on the use of devolved funding remains weak.

Impacts

• Not all subnational jurisdictions are guilty of malpractice; some have a good record of honest administration.
• Attempts to roll back decentralisation are politically problematic, especially for a weakly constituted central government.
• Programmes to improve local governance may take many years to take root.