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Constraints to Effective Fiscal Decentralization in Peru

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  • Ehtisham Ahmad and Mercedes García-Escribano

    (London School of Economics and IMF)

  • Mercedes García-Escribano

    (Western Hemisphere Department IMF)

Abstract

Peru represents a laboratory for examining the different approaches to the centralized or decentralized delivery of public services over the past quarter of a century. There is a renewed and increasing interest in decentralization in Peru as a mechanism to generate more involved decision making at the sub-national level. This is tempered with a continuing emphasis on overall fiscal stability. Learning from the lessons of the ongoing decentralization, there is a recognition that considerable work needs to be undertaken to more clearly define expenditure responsibilities and financing mechanisms that would increase local accountability. In addition, improved expenditure management at all levels of government is needed. The paper suggests that there is a pending work agenda to grasp the benefits of the decentralization process, including the reduction in inequality and poverty across regions.

Suggested Citation

  • Ehtisham Ahmad and Mercedes García-Escribano & Mercedes García-Escribano, 2008. "Constraints to Effective Fiscal Decentralization in Peru," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0824, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    • Handle: RePEc:ays:ispwps:paper0824
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    File URL: http://icepp.gsu.edu/files/2015/03/ispwp0824.pdf
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    References listed on IDEAS

    as
    1. Gustavo Yamada & Carlos Casas, 2005. "Medición de Impacto en el Nivel de Vida de la Población del Desempeño Macroeconómico para el Período 2001- 2004," Working Papers 05-04, Centro de Investigación, Universidad del Pacífico.
    2. Ms. Maria A Albino & Mr. Raju J Singh & Mr. Ehtisham Ahmad, 2005. "Subnational Public Financial Management: Institutions and Macroeconomic Considerations," IMF Working Papers 2005/108, International Monetary Fund.
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