Local governments' capacity and performance: Evidence from Peruvian municipalities

Fernando M. Aragón, Carlos Augusto Casas Tragodara

Research output: Working paper


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.
Translated title of the contributionLa capacidad y sedempeño de los gobiernos locales: Evidencia de las municpalidades peruanas
Original languageEnglish
Place of PublicationCaracas
PublisherBanco de Desarrollo de América Latina
Number of pages23
StatePublished - Aug 2008


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