In 2003, Peruvian law changed to require greater citizen participation in district administration and development. According to the new norms: 1) citizens draw up strategic plans for district development, 2) citizen representatives select priority projects during the annual municipal budgeting process, and 3) citizens appoint an oversight committee to ensure adequate use of municipal government funds. The newly elected president, Alan Garcia Perez, has promised to accelerate decentralization with the transfer of additional responsibilities, especially for education and social programs, and required funding. Municipal governments are responsible for promoting development within their district, yet their budget allotment (6.5% of the 2006 national public sector budget) is hardly enough to meet basic operational expenses.
Technical Assistance to Citizens and Municipal Officials
SID began to provide technical assistance to municipal governments and citizens in 2003 when President Toledo initiated decentralization. The Manco Capac Municipal Association in Puno’s Lake Titicaca region requested assistance in undertaking strategic development planning in six districts. SID’s team trained representatives of municipal governments and grassroots organizations as well as university students to lead a three-stage planning process. First, citizens helped municipal planners identify community priorities and nominated leaders to represent them in district-wide strategic planning events. Second, representatives debated development problems and opportunities before ranking the project according to district-level priorities. Third, the municipal team drafted a strategic district development plan, covering a 10-15 year period and including all sectors (education, health, production, etc.). SID also provided assistance for annual budgeting.
In 2004, SID expanded this work to a longer-term program of helping municipalities, grassroots organizations and citizens to implement the development projects and priorities of their district’s strategic development plans. The aim is to: 1) strengthen local capacities of rural municipalities to comply with new administrative and development responsibilities and 2) mobilize local governments and organizations to work together with the public and private sector in improving their economic situation. The current project, funded by the Inter-American Foundation (2004-2007) supports civic planning, budgeting and project implementation not only within district borders, but across a six-district territory.
SID, in partnership with other institutions, focuses on diverse actions to help rural families increase their production and income from farming, handicrafts production, rural tourism and other small businesses. One early success of this two-fold program promoting democracy and economic development has been the creation of offices that support economic development in four of the six municipal governments.
