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Local governments' capacity and performance: evidence from peruvian municipalities

Fernando Aragon and Carlos Casas

No 256, Research Department working papers from CAF Development Bank Of Latinamerica

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.

Keywords: Desarrollo; Gobernabilidad; Economía; Sector público; Investigación socioeconómica (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:dbl:dblwop:256

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