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Local governments' capacity and performance: evidence from peruvian municipalities

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  • Aragón, Fernando
  • Casas, Carlos

Abstract

This paper explores the extent of technical capacity constraints in Peruvian local governments. To do that, we study how effective municipalities are in using a significant income windfall due to central government transfers mostly earmarked to capital expenditures. We find evidence that in the short-term municipalities are unable to use all the additional resources. The inability to spend additional resources seems to be linked to lack of project management and administrative skills. Mayor experience is another important factor. These results provide powerful insights to the design of training programs in countries like Peru.

Suggested Citation

  • Aragón, Fernando & Casas, Carlos, 2008. "Local governments' capacity and performance: evidence from peruvian municipalities," Research Department working papers 256, CAF Development Bank Of Latinamerica.
    • Handle: RePEc:dbl:dblwop:256
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    File URL: https://scioteca.caf.com/handle/123456789/256
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    Cited by:

    1. Ronel Geraldizo Dagohoy, 2021. "Capabilities and Difficulties of Barangay Officials on Local Budgeting Process," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(5), pages 325-335, May.
    2. Mbanda, Vandudzai & Bonga-Bonga, Lumengo, 2019. "Municipal infrastructure spending capacity in South Africa: a panel smooth transition regression (PSTR) approach," MPRA Paper 91499, University Library of Munich, Germany.

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