Peru : Building a More Efficient and Equitable Fiscal Decentralization System
Over the past two decades, Peru has achieved remarkable economic success. Average annual Gross Domestic Product (GDP) growth has exceeded 5 percent since 2001. Poverty has been consistently reduced, and sustained improvements have been observed in...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/106651568318660229/Peru-Building-a-More-Efficient-and-Equitable-Fiscal-Decentralization-System http://hdl.handle.net/10986/32431 |
| Summary: | Over the past two decades, Peru has
achieved remarkable economic success. Average annual Gross
Domestic Product (GDP) growth has exceeded 5 percent since
2001. Poverty has been consistently reduced, and sustained
improvements have been observed in social and human
development. The poverty incidence rate fell from 58 to 23
percent between 2004 and 2014, and households’ incomes at the
bottom 40 percent grew 50 percent faster than the national
average. The structural transformation of Peru’s economy
striking fast and widely shared growth transformed Peru into
an upper-middle income and diversified economy. This report
analyzes recent trends of the fiscal decentralization
process in Peru and presents a set of reform options
designed to harvest the envisaged efficiency and equity
gains in service delivery that the fiscal decentralization
was expected to bring. The analysis and policy options are
presented in a conceptually logical order: (i) departing
from institutional arrangements in the vertical structure of
subnational governments passing to (ii) the need of a
clearer definition of spending responsibilities among levels
of government that needs to be followed by (iii) a
commensurate redefinition of revenue assignments and (iv)
enhancing equalization role of the transfer system. |
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