Decentralization is a fairly recent process in Peru that has been driven by a mixture of democratization, state modernization, increased accountability in service delivery, and regional economic development objectives. Politics has also played an important role. Overall, the general approach to decentralization reform in Peru has been cautious and conservative and by design its implementation has been gradual. With hindsight there were several important missteps that could have been avoided. There are other important aspects that will require substantial reform efforts in the coming years, including the formation of macroregions and how to undo the important negative consequences of the canon system. Peru is today at a stage where the question is what final form of decentralization to adopt. This paperer provides a blueprint for achieving a more efficient and equitable decentralization system in the country.
Martinez-Vazquez, Jorge, "Fiscal Decentralization in Peru: A Perspective on Recent Developments and Future Challenges" (2013). ICEPP Working Papers. 45.