Delivering a place-based regional policy requires a sound multi-level governance system that ensures co-ordinated policy measures, the involvement of a broad range of stakeholders and adaptation to the specific conditions of regions and localities. This chapter provides a comprehensive assessment of the multi-level governance frameworks for regional development in Peru. It first reviews the formal and informal mechanisms and processes of inter-governmental consultation, co-ordination and co-operation and joint decision-making in Peru, looking in particular at the institutional and financial interactions among and across levels of government, as well as with non-governmental stakeholders. Second, it provides ways forward for Peru to pursue progresses made in recent years and further strengthen the overall multi-level governance system for regional development.
4. Multi-level governance for regional development
Copy link to 4. Multi-level governance for regional developmentAbstract
Overview of multi-level governance frameworks in Peru
Copy link to Overview of multi-level governance frameworks in PeruNational-level co-ordination mechanisms for regional development
At the national level, the PCM is the main body responsible for ensuring that ministries, subnational governments, and government agencies align their actions with national priorities. Led by the Prime Minister, the PCM co-ordinates policy across sectors and oversees the work of the ministries to ensure coherence with the government’s overarching objectives. It encompasses key offices such as the Decentralisation Secretariat (Secretaría de Descentralización), alongside specialised bodies such as the National Centre for Strategic Planning (Centro Nacional de Planeamiento Estratégico, CEPLAN), the National Authority for Civil Service (Autoridad Nacional del Servicio Civil, SERVIR), and the Agency for the Promotion of Private Investment (Agencia de Promoción de la Inversión Privada, Proinversión), which provide essential technical and strategic support. With this structure, the PCM fosters inter-ministerial collaboration, ensuring that national goals are effectively implemented throughout the country.
Ministries in Peru often co-ordinate through Inter-ministerial Commissions, which serve as crucial mechanisms for ensuring cross-sectoral collaboration among ministries on interconnected policy areas, such as social welfare and economic growth. These commissions not only facilitate co-ordination but also act as advisory bodies, helping the PCM and the national government make informed decisions by drawing on the collective expertise of relevant ministries. Additionally, they oversee the implementation and monitoring of cross-sectoral policies to ensure alignment and effectiveness. Two notable examples are the Inter-ministerial Commission on Social Affairs (Comisión Interministerial de Asuntos Sociales, CIAS) and the Inter-ministerial Commission on Economic and Financial Affairs (Comisión Interministerial de Asuntos Económicos y Financieros, CIAEF). The CIAS, comprising the ministries of Health, Education, Development and Social Inclusion, and Labour, addresses multi-dimensional challenges such as poverty reduction, education access, and employment generation. Meanwhile, the CIAEF, which includes the ministries of Economy and Finance, Production, Foreign Trade and Tourism, and Energy and Mines, focuses on public spending, taxation, and macroeconomic stability.
Peru does not have a formal cross-sectoral committee dedicated to regional development, where co-ordination among ministries is ensured. While there have been discussions about the need for this permanent body, the lack of a unified national regional development strategy–largely due to challenges in integrating diverse sectors such as transportation, housing, education, and health–has deterred decision-makers from formalising and establishing this committee.
Vertical co-ordination mechanisms
Following the OECD Territorial Review of Peru in 2016, the country established the Vice-Ministry of Territorial Governance in 2018 within the PCM, under which the Decentralisation Secretariat was created (Official Gazette Supreme Decree No. 029-2018-PCM, 2018[1]; Secretaría de Descentralización, 2022[2]). The Secretariat is organised into three sub-secretariats focused on intergovernmental co-ordination, capacity-building, and territorial articulation, respectively. These divisions enable the Secretariat to manage and strengthen the relationship between the national, regional, and local governments, ensuring that decentralisation efforts align with national priorities while empowering subnational entities. At the moment, its core responsibilities include developing a National Multisectoral Decentralisation Policy on the basis of what is prescribed by the Law on the Bases for Decentralisation, the 8th State Policy and the General Policy of Government 2021-2026 (Official Gazette Law No. 27783, 2002[3]; Acuerdo Nacional, 2002[4]; Official Gazette Supreme Decree No. 164-2021-PCM, 2021[5]). Its tasks also comprise enhancing the capabilities of subnational governments and promoting intergovernmental dialogue through platforms such as the Intergovernmental Co-ordination Councils (Consejos de Coordinación Intergubernamental, CCI).
The CCIs have served as platforms for dialogue between the national government and subnational governments since their creation in 2021 (Official Gazette Supreme Decree No. 050-2021-PCM, 2021[6]). These councils bring together representatives from regional and local governments (including members of the main national associations of subnational authorities) and national government officials to discuss and co-ordinate on key issues such as infrastructure, social services, and fiscal management, all of which are pivotal for regional development. However, the councils primarily operate as high-level fora, where the decisions made are indicative rather than binding. The responsibility for working out the technical details is delegated to technical committees, which involve subnational governments and line ministries.
The Regional Councils of State (Consejos de Estado Regional) are key platforms in Peru designed to strengthen vertical co-ordination between the national government and regional governments (Supreme Decree 050-2021-PCM). These councils bring together high-level representatives from the national government and regional governors. The outcomes of these discussions are often formalised through agreements, contractual instruments, or joint action plans. Since the creation of these platforms in 2023, five Regional Councils of State have been held, with the most recent taking place in August 2024 in Arequipa. At this fifth council, 413 participants, including 23 regional governors and 6 ministers, facilitated the signing of 312 agreements between regions and the ministries of Education, Agriculture, Health, and Housing, among others. Up until July 2024, of the 32 high-level engagements made since 2023, 68.8% have been fulfilled, and 79.3% of the 1 046 agreements signed have been implemented (PCM, 2024[7]). Notable projects include the renovation of the airport of Jaén, in collaboration with the Ministry of Transport and Connectivity, and the inauguration of High-Performance Schools in Áncash, Moquegua, and Tacna, benefiting 900 students, with the Ministry of Education. Additionally, the councils have also facilitated the authorities’ commitment to establish 51 public educational institutions through public-private partnerships in the regions of Amazonas, Cusco, Huancavelica, Lima, Pasco, Tumbes, San Martín, and Ucayali, benefiting 50 000 students, with an estimated investment of PER 13 billion (USD 3.4 billion) (Secretaría de Descentralización, 2024[8])
In 2024, the first Municipal Council of State (Consejo de Estado Municipal), an equivalent of the Regional Councils of State for the municipal authorities, took place in February 2024. This council gathered several ministers of State, over 180 provincial mayors, and members of key associations of subnational authorities, such as the Association of Municipalities of Peru and the Network of Urban and Rural Municipalities of Peru (Presidencia, 2024[9]). District mayors are not directly included as participants to the Municipal Council of State. Moving forward, these meetings are expected to occur several times a year to ensure close monitoring of the agreements and commitments made between councils, with progress tracked through the publication of monitoring reports on a bimonthly basis1. While these meetings provide a platform for high-level co-ordination across levels of government, much like the Regional Councils of State, they primarily focus on political discussions around major investments. Its format may not be conducive to discussing long-term goals, aligning national, regional, and local strategies, or co-ordinating the implementation of agreed-upon initiatives.
Many ministries and agencies in Peru have established deconcentrated offices (direcciones regionales) at the subnational level to ensure the effective implementation of sectoral policies across the country. This is the case of the Ministry of Education and the Ministry of Health, which manage education and healthcare policies at the regional level, ensuring these essential services are delivered in accordance with national standards. The boundaries of these deconcentrated offices align with those of the regional governments. It is also the case for national agencies such as National Superintendency of Customs and Tax Administration (Superintendencia Nacional de Aduanas y Administración Tributaria) and the National Institute of Statistics and Informatics (Instituto Nacional de Estadística e Informática). Furthermore, while regional governments manage their own development policies, agencies such as Proinversión and CEPLAN often have deconcentrated offices or, at least, designated regional representatives to facilitate co-ordination between national and regional development efforts and provide technical assistance to subnational governments. Currently, there is no formal mechanism or body for regular co-ordination across different ministries’ deconcentrated offices at the subnational level, beyond the Regional Development Agencies where deconcentrated offices are invited to participate.
Peru started using contractual instruments as vertical co-ordination mechanisms in 2022, with Regional or Intergovernmental Pacts (Pactos Regionales o Intergubernamentales) providing a framework for regional and local governments to negotiate their needs and strategies either with each other or with the national government. These agreements typically engage a range of stakeholders, including civil society and the private sector. A notable example is the Intergovernmental Pact to ensure a healthy childhood (Pacto Intergubernamental para garantizar una infancia saludable) in the Ica region, developed in collaboration with the Ministry of Development and Social Inclusion (MIDIS). This pact establishes a Multi-Sectoral Regional Coordinating Commission (Comisión Coordinadora Regional Multisectorial) that gathers regional and local governments that discuss issues related to health, education, and access to chlorinated water, ensuring integrated services for children from gestation to five years old. The Ministry is present through their deconcentrated office’s technical team. Until 2024, workshops with 13 municipal districts led to the establishment of common proposals and targets to address gaps in service delivery for young children (Gobierno Regional de Ica, 2023[10]). Another example is the Regional Pacts for the Promotion, Prevention and Improvement of Services Linked to Early Childhood Development (Pactos Regionales para la Promoción, Prevención y Mejora de los Servicios Vinculados al DIT), which seeks to promote collaboration between the regional government of Lima and its municipalities in improving access to education, health, and water services for young children in the region.
With 1 891 municipalities in Peru, national associations of subnational authorities play a crucial role in co‑ordinating efforts among municipalities and representing local governments at the national level (INEI, 2023[11]). The main association is the Association of Municipalities of Peru (Asociación de Municipalidades del Perú, AMPE), founded in 1982, which includes both provincial and district municipalities, regardless of whether they are urban or rural. In addition to its involvement in the CCIs, the AMPE is the main municipal authority presiding over the Municipal Council of State. It also plays an active role as a member of the committee that allocates the Territorial Investment and Development Fund (Fondo de Inversión y Desarrollo Territorial, FIDT) and is regularly invited to participate in the working group for the evaluation and assessment of the FONCOMUN organised by the PCM (OECD, 2024[12]). Other national associations of local authorities include the Network of Urban and Rural Municipalities of Peru (Red de Municipalidades Urbanas y Rurales del Perú, REMURPE), and the Association of Female Mayors (Asociación de Mujeres Alcaldesas). As for the regional level, the National Assembly of Regional Governments (Asamblea Nacional de Gobiernos Regionales, ANGR) groups all 25 regional governments and represents them in over 100 Intergovernmental Sectorial Commissions at the national level.
Finally, the National Council for Border Development and Integration (Consejo Nacional de Desarrollo de Fronteras e Integración Fronteriza, CONADIF) is a multisectoral and multilevel body responsible for formulating and evaluating state policies related to the development of Peru’s border territories. Chaired by the Minister of Foreign Affairs, CONADIF includes the Minister of the Interior, the Minister of Defence, other Ministers of State as needed based on the agenda, as well as the nine governors of border regions (i.e. Amazonas, Cajamarca, Loreto, Madre de Dios, Piura, Puno, Tacna, Tumbes, and Ucayali), three provincial mayors, and three district mayors from border municipalities, along with the Executive Director of CEPLAN. CONADIF played a pivotal role in crafting the National Policy for Border Development and Integration in 2018, which aims to promote the human development of border populations, integrate them into national development trends, foster competitive relations with neighbouring countries, and ensure the secure management of border areas (MRREE, 2018[13]; MRREE, 2024[14]).
Horizontal co-ordination mechanisms
Since the publication of the OECD Territorial Review of Peru in 2016 and the subsequent creation of the Vice-Ministry of Territorial Governance, a regulation was passed granting the Decentralisation Secretariat the mandate to promote and support the establishment of ARDs, a key mechanism for multi-stakeholder co-ordination across sectors and levels of government (OECD, 2016[15]; Secretaría de Descentralización, 2022[2]). Since 2018, 15 ARDs have been established, with three more in process. While the regulation sets the general framework for ARDs, each regional government must issue an ordinance specifying the composition and operational details.
ARDs are typically led by the regional government and include representatives from local governments, deconcentrated offices from the national government, civil society, academia, and the private sector. Most ARDs, such as those in Ancash, Apurímac or Ayacucho, are chaired by the regional government (Regional Government of Ancash, 2023[16]; Regional Government of Apurímac, 2023[17]; Regional Government of Ayacucho, 2019[18]). Exceptionally, the ARD in Piura, established in 2023, introduced a two-year rotating presidency among the members of the ARD. Within all ARDs, each participating institution must cover its own personnel costs, whereas the functions assigned to the ARD are financed from the budgets of its member institutions, without requiring additional resources from the Public Treasury (Official Gazette Regional Ordinance No. 495-2023/GRP-CR, 2024[19]). Due to their lack of legal personality, ARDs in Peru do not have resources to fund their operations that they can manage autonomously. Most can, however, obtain technical and financial assistance for the achievement of its objectives by public or private entities “without this implying the capacity of administering resources” (Regional Government of Apurímac, 2023[17]). To date, the main strategic planning activities ARDs undertake have been financed by funds from European international co-operation partners, amounting to EUR 15.8 million between 2018 and May 2024. The national government has also provided over PER 7 million (approximately EUR 1 million) through the Promsace project, implemented between 2019 and 2023 by the Decentralisation Secretariat to ensure a better inter-governmental articulation of ARDs (OECD, 2024[12]; PCM, 2024[20]). is currently considering allowing ARDs to access a set of national funds, such as Procompite or Proinnóvate, to fund their operations.
In addition to these funding sources, some ARDs have successfully accessed competitive funding to implement productive development projects, business plans, and R&D initiatives. For example, through the National Programme for Technological Development and Innovation (ProInnóvate), ARDs received PER 7.1 million, while the Agricultural Competitiveness Program (AGROIDEAS) provided PER 1.2 million for projects aimed at improving agricultural productivity. Further contributions include PER 0.8 million from the Procompite Regional Ancash fund, PER 1.2 million from AGROBANCO, and PER 460 000 from AGROHEALTH, along with PER 5 million through widely held shareholding programmes. Regional development agencies such as those in Tacna, Huánuco, Piura, and Cajamarca, working closely with each region’s deconcentrated offices, are planning to submit additional proposals for productive development projects, business plans, and R&D initiatives to public, co-operative, and private competitive funds in 2025 in order to sustain their operations.
ARDs are key actors in regional strategy development. The main activity that ARDs in Peru are conducting is the elaboration of a Regional Development and Innovation Strategy, which seeks to identify and promote competitiveness to ensure sustained economic development. These strategies, which are linked to each region’s main Regional Development Plan (Plan de Desarrollo Regional Concertado), focus on identifying key sectors with high potential for growth, fostering innovation, and promoting public-private partnerships to drive economic development. As a result, ARDs in different regions prioritise different sectors: while the ARD in Piura has prioritised agriculture, particularly in agro-export sectors, the ARD in Cusco has focused on the tourism and hospitality sectors, whereas Arequipa has turned its attention to renewable energy to capitalise on the region’s natural resources (RDA Cusco, 2024[21]; RDA Arequipa, 2021[22]; RDA Piura, 2023[23]).
Another widely used horizontal co-ordination mechanism in Peru is the mancomunidad, a public entity with legal personality at the local, and occasionally, at the regional level. Mancomunidades are formed through a legal agreement between two or more municipalities or regions to jointly provide services or undertake construction projects. This instrument can enhance the efficiency and reach of public services and infrastructure development. As of September 2024, there are 213 registered mancomunidades at the municipal level and seven at the regional level, although only 25 and three are currently operational, respectively. The limited functionality of many mancomunidades is due to legislative constraints that prevent them from managing their own budgets. As a result, member municipalities must agree on transferring funds to a single municipality designated to deliver the joint services, which places a disproportionate burden on one municipality, hindering effective operation (Official Gazette Law No. 29029, 2007[24]; PCM, 2024[25]).
Inter-regional co-operation in Peru typically occurs on an ad hoc basis. For instance, the departments of Piura and Tumbes are currently collaborating on the construction of a university hospital and a heliport to serve both regions. Additionally, the two regions are part of a “police microregion” to co-ordinate on security matters, where they are currently working to establish a criminalistics laboratory (OECD, 2024[12]; Ministry of Interior, n.d.[26]; Andina, 2021[27]). These joint initiatives have highlighted the potential for adopting the formal instrument of a regional mancomunidad.
Municipalities within a region often form associations to co-ordinate and collectively represent their interests. For instance, the Association of District Municipalities of the Region of Piura was established in March 2024 to advocate for the common needs of its members with the regional government (District Municipality of El Tallán, 2024[28]). Another example is the Association of Municipalities of Population Cores of Trujillo (Asociación de Municipalidades de Centros Poblados de Trujillo, ACEMPT), which brings together rural settlements in the region that have limited administration autonomy and remain under the jurisdiction of their respective districts. The ACEMPT plays a key role in advising and strengthening the capacities of these populated cores by co-ordinating joint activities aimed at improving public services and infrastructure (OECD, 2024[12]).
Assessment and recommendations
Copy link to Assessment and recommendationsPeru has made important strides towards improving its multi-level governance system for regional development in recent years. Notably, the establishment of the Vice-Ministry of Territorial Governance under the PCM in 2018 has played a key role in the creation of 15 Regional Development Agencies and in fostering vertical co-ordination through mechanisms such as the Inter-governmental Co-ordination Councils, the Regional and Municipal Councils of State and the Regional or Inter-governmental Pacts.
Peru benefits from several well-established national associations of subnational authorities, including regions, provincial and district municipalities, and populated cores, which actively represent their interests in national platforms and policy dialogues. These associations are consulted on legislative and regulatory changes with a view to ensuring that policies with local impact are developed in close collaboration with subnational authorities.
However, there are opportunities for Peru to further strengthen its multi-level governance system. First, while Peru has several inter-sectoral and intergovernmental structures–such as the Inter-ministerial Commissions, Intergovernmental Co-ordination Councils, and the Regional and Municipal Councils of State–which facilitate co-ordination among ministries at the national level and between ministries and subnational governments, these instances tend to stay as very high-level, focused mostly on the rate of budget execution of investment projects, rather than on the co-ordination of goals, strategies and investments. Therefore, despite the presence of different mechanisms for co-ordination, the country still lacks a permanent body dedicated to applying a territorial approach to regional development that serves as an effective tool for cross-sectoral and multi-level co-ordination.
To avoid the proliferation of co-operation instances, strengthening the Intergovernmental Coordination Council on regional development could provide a comprehensive framework for policymaking. Reinforcing the CCI on regional development affairs as a formal body could facilitate co-ordination on the cross-sectoral topic of regional development and reduce fragmentation in decision making. This can offer a platform for genuine co-ordination among levels of government, ensuring that policies are not only aligned with the unique needs and opportunities of each region but also foster synergies among subnational governments facing similar challenges or benefitting from shared investment projects. To do so, this body–composed of key ministries, major national associations of subnational governments, ARDs, and other subnational actors–could meet more regularly, at least once every two months, to discuss priorities, challenges, and opportunities in-depth, with its decisions having binding authority. Its actions could contribute to aligning investments among ministries and regions in key areas such as infrastructure, education, and health. The CCI could play a key role in developing more integrated development plans that address territorial disparities and local priorities, and it could either become a vital mechanism to develop and implement the National Multisectoral Decentralisation Policy currently in its initial stages and led by the Decentralisation Secretariat, implement the National Rural Development Policy, or lead to the elaboration of a National Regional Development Policy. Ultimately, a stronger CCI on regional development could reinforce Peru’s ongoing decentralisation efforts and ensure that the process drives more inclusive and balanced development across the country.
Second, a key instrument for both vertical and horizontal governmental co-ordination in Peru are the 15 ARDs that have been created over the last eight years, following the recommendations of the OECD Territorial Review. Where they exist, these agencies aim to play a vital role in territorial development planning, acting as platforms where regional stakeholders–government, civil society, academia, and the private sector–come together to formulate key strategies, such as the Regional Development and Innovation Strategy and the Regional Ecosystem Development Plan (see Chapter 2). However, despite their importance, ARDs in Peru face several challenges that can hinder their long-term effectiveness. One key issue is that almost all ARDs are chaired by the regional government, which makes them vulnerable to political shifts and changes in leadership. This lack of political continuity can result in significant modifications to the strategies developed by the ARDs, leading to a more short-term focus or, in some cases, halting implementation altogether. Given that the main task of ARDs is to identify and leverage regional strengths and opportunities for economic competitiveness and development, their activities should aim for long-term impact and a change in regional government leadership should not disrupt the ARD’s work. Adopting a rotating presidency, as seen in Piura, could help mitigate these issues by ensuring that all ARD members, across government, civil society, academia, and business, remain actively engaged in the agency’s work, keeping development strategies consistent and relevant irrespective of any political shifts.
Another significant challenge is that ARDs in Peru lack legal personality, which limits their ability to raise resources and manage their own budgets autonomously. While members are expected to pool funds from their respective institutions to support the ARD’s activities, this is rarely done, and when it is, it is often the regional government that bears most of the financial burden. Currently, ARDs rely heavily on EU aid funding, which has supported the development of Regional Development and Innovation Strategies. However, with this funding having expired in May 2024, it is essential that ARDs gain access to alternative and stable sources of funding to sustain their operations. Granting ARDs legal personality, all while tailoring the different types of legal personalities to the diverse regional contexts, could boost their ability to manage–and potentially raise–their own financial resources with a greater autonomy while opening access to national funding programmes, such as Proinnóvate and Procompite, would provide a vital lifeline for ARDs, reducing their dependence on regional government allocations and EU aid.
Another challenge facing ARDs in Peru is the uneven success in establishing them across regions. While ARDs have been designed to serve as critical mechanisms for regional development, not all regions have succeeded in their efforts to create one. In some cases, the process is seen as lengthy, convoluted, and resource-intensive, deterring regions from establishing an ARD. It is often the regions most in need–those with GDP per capita levels below the national average, such as Puno, Amazonas, Lambayeque, and Junín–that lack an ARD. If Peru aims to achieve balanced territorial development through the work of ARDs, creating ARDs in these lagging regions with adequate support from the national government and a multiannual plan to make them financially sustainable over time can be essential to unlocking their untapped economic potential.
A final challenge that ARDs face is that ARDs are currently operate within their respective regions and do not often engage in cross-regional collaboration. Nonetheless, as demonstrated by successful projects between Piura and Tumbes, there are clear opportunities for regional collaboration on a macroregional scale. If the model of one ARD per region remains, it is crucial that ARDs are better connected to one another to identify collaborative opportunities that could benefit several regions simultaneously, further enhancing their impact on regional development across Peru.
Third, another instrument for horizontal co-operation in Peru is the mancomunidades, established at both the municipal and, to a lesser extent, the regional level. These are public entities with legal personal that offer governments the opportunity to achieve economies of scale and deliver services more cost-effectively. However, mancomunidades face significant regulatory obstacles. Only 12% (25 out of 213) of municipal mancomunidades and just three out of seven regional ones are fully operational (PCM, 2024[25]). The primary reason for this is that the current regulatory framework does not permit mancomunidades to receive and manage their own funds. As a result, participating municipalities must agree on which one will receive the funding necessary to provide services to the others, and then transfer resources to that designated municipality for administration. This process prevents the pooling of resources into a joint body with shared governance, instead placing the burden of fund management on a single municipality. The challenges of deciding which municipality should take on this role, determining the appropriate funding levels, and ensuring the administrative capacity to manage these resources across municipal and regional boundaries, all contribute to the limited functionality of mancomunidades. To address these issues, the regulatory framework must be updated, and administrative systems modernised, to allow mancomunidades to independently manage their own funds from contributing municipalities, ensuring that they are not only formally established but also fully operational.
Finally, while many structures exist to give a voice to all levels of government in policymaking, there is no institutional body or platform that represents all actors at the metropolitan level. As discussed in Chapters 1 and 2, the definition of Lima Metropolitana does not encompass all territories within what the OECD refers to as a functional urban area–a territorial concept that includes not only the core city but also its commuting zone. Consequently, the planning and implementation of key policies and investments are not fully co-ordinated with all relevant authorities, thereby missing out on joint opportunities for collaboration (CEPLAN, 2023[29]). Decisions made within Lima Metropolitana often impact neighbouring municipalities that fall outside its boundaries, yet since 2016 there continues to be a lack of effective mechanisms to ensure systemic co-ordination of planning and investment decision making between the region of Lima and the neighbouring Constitutional Province of Callao (OECD, 2024[12]). As discussed in the OECD Territorial Review of Peru (2016[15]), establishing a metropolitan governance mechanism that includes all municipalities within Lima’s functional urban area would be essential for ensuring more cohesive and strategic planning, particularly in managing challenges such as urban sprawl and the growth of informal settlements on the city’s outskirts. A similar arrangement should be created in other smaller but important urban agglomerations such as Arequipa and Trujillo.
Box 4.1. Recommendations to strengthen multi-level governance for regional development
Copy link to Box 4.1. Recommendations to strengthen multi-level governance for regional developmentStrengthen the Intergovernmental Coordination Council as a formal body that facilitates co-ordination on the cross-sectoral topic of regional development and reduce fragmentation in decision making. This body, composed of key ministries, major national associations of subnational governments, ARDs, and other subnational actors, should meet more regularly, at least once every two months, to discuss priorities, challenges, and opportunities in-depth, with its decisions having binding authority. This would include not only monitoring the decentralisation process through the approval of the annual decentralisation report but also approving, for example, the National Multisectoral Decentralisation Policy to be adopted in the country, the focus on territorial development guidelines, and the National Rural Development Policy. This would likely require modifying the Law on the Bases for Decentralisation and other organic laws taking stock of the 20 years since the decentralisation process started. A robust CCI on regional development would promote a place-based, territorial approach to policymaking, breaking down silos among ministries and different levels of government, encourage more integrated development planning, and reinforce Peru’s ongoing decentralisation efforts.
Enhance the structure and functioning of Regional Development Agencies to ensure that their activities contribute effectively and sustainably to achieving regional development goals over the long term. This could be achieved through four main adjustments. First, regional ordinances should allow ARDs to be chaired not only by the regional government but also by other members, such as business associations, academia, or civil society organisations, as this could help mitigate the impact of short political cycles on long-term regional development plans. Second, ARDs should be granted legal personality to enhance their capacity to manage–and potentially generate–their own financial resources with greater autonomy, all while tailoring the different types of legal personalities to the diverse regional contexts. They should be given broader access to additional national funding sources, reducing their reliance on EU or external aid. Third, the establishment of a network of ARDs could foster inter-regional collaboration, create opportunities for increased gains from economies of scale, and facilitate knowledge exchange between agencies. Finally, it is crucial to provide technical and financial support to create an ARD in those regions that currently lack one–often those with GDP per capita below the national average–to ensure they can seize opportunities and contribute to balanced territorial development across the country.
Improve the institutional, legal, and fiscal framework of inter-municipal co-operation and modernise the administrative systems to allow the correct functioning of mancomunidades. Such reforms would allow mancomunidades to receive and autonomously manage funds contributed by participating municipalities, ensuring they can fulfil the objectives set forth in their founding legal agreements.
Consider creating a metropolitan governance mechanism for each functional urban area to co-ordinate metropolitan decision making with all relevant stakeholders. This could ensure more cohesive and strategic planning particularly in managing challenges such as urban sprawl and the growth of informal settlements outside the city’s core
References
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[1] Official Gazette Supreme Decree No. 029-2018-PCM (2018), Regulation governing National Policies, https://cdn.www.gob.pe/uploads/document/file/1904126/Reglamento-Politicas-Nacionales%20DS%20029-2018-PCM.pdf.pdf?v=1621612438 (accessed on 14 October 2024).
[6] Official Gazette Supreme Decree No. 050-2021-PCM (2021), Supreme Decree approving the Rules of Procedure of the Intergovernmental Coordination Council, https://cdn.www.gob.pe/uploads/document/file/3561214/Decreto%20Supremo%20N%C2%BA%20050-2021-PCM.pdf?v=1661555412 (accessed on 5 September 2024).
[5] Official Gazette Supreme Decree No. 164-2021-PCM (2021), Supreme Decree approving the General Policy of Government for the period 2021-2026, https://busquedas.elperuano.pe/dispositivo/NL/2002063-5 (accessed on 14 October 2024).
[7] PCM (2024), Consejos de Estado Regional - Avances al 31 de julio de 2024.
[20] PCM (2024), PROMSACE: Mejoramiento y ampliación de los servicios de soporte para la provisión de los servicios a los ciudadanos y las empresas a nivel naciona, https://www.promsace.gob.pe/ (accessed on 14 November 2024).
[25] PCM (2024), Registry of Municipal and Regional Mancomunidades, https://www.gob.pe/institucion/pcm/colecciones/18047-mancomunidades-regionales-y-municipales (accessed on 15 October 2024).
[9] Presidencia (2024), President Boluarte opened the first Municipal State Council and ratified commitment to decentralisation, https://www.gob.pe/institucion/presidencia/noticias/906977-presidenta-boluarte-instalo-el-primer-consejo-de-estado-municipal-y-ratifico-compromiso-con-descentralizacion (accessed on 14 October 2024).
[22] RDA Arequipa (2021), Regional Development and Innovation Strategy, https://www.gob.pe/institucion/pcm/informes-publicaciones/5803857-ard-arequipa-edir (accessed on 15 October 2024).
[21] RDA Cusco (2024), Regional Development and Innovation Strategy (EDIR) of Cusco, https://www.gob.pe/institucion/pcm/informes-publicaciones/5942684-ard-cusco-edir (accessed on 15 October 2024).
[23] RDA Piura (2023), Regional Development and Innovation Strategy, https://www.grade.org.pe/wp-content/uploads/05-EDIR-Resumen_Piura_Web.pdf (accessed on 15 October 2024).
[16] Regional Government of Ancash (2023), General Management Resolution No. 663-2023-GRA/GGR, https://www.regionancash.gob.pe/doc_normativas/rggr/2023/663_2023_456964f1ed6d6e7c369f2b0fe7e1235f.pdf (accessed on 9 September 2024).
[17] Regional Government of Apurímac (2023), Reference Framework for the Formulation of the Regulations of the Regional Development Agency of Apurímac, https://cdn.www.gob.pe/uploads/document/file/6670427/5796687-reglamento-de-la-ard-apurimac.pdf?v=1721331576 (accessed on 9 September 2024).
[18] Regional Government of Ayacucho (2019), Regional Ordinance No. 011-2019-GRA/CR, https://cdn.www.gob.pe/uploads/document/file/1438970/ORDENANZA%20REGIONAL%202019%20N%2011%20APROBAR%20LA%20CREACION%20DE%20LA%20AGENCIA%20REGIONAL%20DE%20DESARROLLO%20DE%20AYACUCHO%20-%20ARDAY.pdf.pdf?v=1662495432 (accessed on 9 September 2024).
[8] Secretaría de Descentralización (2024), IV Consejo de Estado Regional - Avances al 30 de junio de 2024, https://cdn.www.gob.pe/uploads/document/file/6806691/5663858-02-iv-cer-seguimiento-jun2024.pdf?v=1724195692 (accessed on 14 October 2024).
[2] Secretaría de Descentralización (2022), The importance of a National Multisectoral Decentralisation Policy, https://cdn.www.gob.pe/uploads/document/file/3559598/La%20importancia%20de%20una%20pol%C3%ADtica%20nacional%20multisectorial%20de%20descentralizaci%C3%B3n%20para%20el%20Estado%20Peruano.pdf (accessed on 14 October 2024).
Note
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