Citizen-oriented state reform
Programme title: Citizen-oriented state reform
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Lead executing agency: Peruvian International Cooperation Agency
(Agencia Peruana de Cooperación Internacional, APCI)
Overall term: 2014 to 2018
Over the last twelve years, Peru has made considerable headway in terms of its economic and social development. Between 2007 and 2012, the rural poverty rate dropped from 74 to 51 per cent while in urban areas it decreased from 30 to 17 per cent. And yet, Peru continues to be characterised by gross regional and social inequality. The state needs to make further progress in modernisation if it is to sustain the current positive economic trends and continue reducing poverty. Acknowledging this need, the incumbent government has initiated reforms in various sectors. Their success, however, depends to a great extent on how they are rolled out at subnational level by the regional and municipal authorities. A major challenge here concerns the generally low performance capacity of the management and financial structures in place at this level, along with the lack of state-society relations.
Public administrations at subnational level act more effectively, transparently and more oriented towards citizen needs, particularly when implementing social programmes.
The programme supports municipalities and other selected actors at local, regional and national level to improve their core capabilities in three areas:
- Coordination of budgeting and planning
The advice given in this area aims to foster more results-based expenditure planning by better harmonisation of planning and budgeting processes at the subnational level.
GIZ advises regional and local governments on how to programme their budget for public goods and services. The objective is to draw up a multi-annual expenditure plan with clear targets that address citizens' needs.
The regional and local governments systematically feed their experience back to the country’s Ministry of Economy and Finance, thus continually improving the national results-based budgeting system.
- Coherent roll-out of public policies: social policy and administrative modernisation
The advisory services aim to ensure the coherent implementation of public policies, especially at the subnational government level. This helps ensure that public service delivery is more efficient and transparent and also more citizen-centred while at the same time underpinning the legitimacy of government action.
In the social policy sector, GIZ cooperates closely with the national level to advise regional and local authorities on how to improve the coverage rate and quality of their social programmes.
Advice given to regional governments and municipalities on administrative modernisation focuses on how they can reduce time, cost and red tape and thus make their services more citizen-friendly. Furthermore, they are assisted in implementing public service reforms.
- Strengthening of horizontal and vertical accountability
The advisory services aim to strengthen horizontal accountability (between government bodies) and vertical accountability (vis-à-vis citizens) for service delivery at subnational levels. Here again, this helps confer legitimacy on government action.
Assistance is given to regional and local level authorities to promote transparency and facilitate citizens’ access to information, enabling the latter to check government activities more effectively. Furthermore, service delivery is to be improved by stepping up citizen participation, which will help create constructive state-society relations.
And, last but not least, the project is working on ways of introducing stricter controls for the award of public service contracts and improving performance monitoring for social interventions at the subnational level.