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Evaluating Fiscal Decentralization in Peru

Glimeus, Linn LU and Bustad, Erik LU (2011) NEKM01 20101
Department of Economics
Abstract (Swedish)
This thesis aims to evaluate how the 2002 reform of the decentralization has changed Peru. The evaluation is focused on the fiscal decentralization, especially the tax collection of subnational governments. By identifying the obstacles of the Peruvian process we hope to be able prescribe how to minimize demerits, and optimize merits of decentralization. Our conclusions are that the current decentralization process has stable support both from the ruling parties and residents of Peru. The setbacks in the process are mainly due to Peru’s heterogeneous nature and the large inequalities among regions and individuals in the country. There are also large incapacities on the subnational level to handle greater responsibilities. To optimize the... (More)
This thesis aims to evaluate how the 2002 reform of the decentralization has changed Peru. The evaluation is focused on the fiscal decentralization, especially the tax collection of subnational governments. By identifying the obstacles of the Peruvian process we hope to be able prescribe how to minimize demerits, and optimize merits of decentralization. Our conclusions are that the current decentralization process has stable support both from the ruling parties and residents of Peru. The setbacks in the process are mainly due to Peru’s heterogeneous nature and the large inequalities among regions and individuals in the country. There are also large incapacities on the subnational level to handle greater responsibilities. To optimize the merits of decentralization, the Peruvian government needs to make great efforts to reduce these incapacities and to ensure a more equal distribution of the country’s wealth. They must also carefully tend to the challenge of increasing the subnational independence while keeping the national unity intact. (Less)
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author
Glimeus, Linn LU and Bustad, Erik LU
supervisor
organization
course
NEKM01 20101
year
type
H1 - Master's Degree (One Year)
subject
keywords
Tax Policy, Peru, Decentralization, Fiscal Decentralization
language
English
id
1787440
date added to LUP
2011-02-17 08:45:43
date last changed
2011-02-17 08:45:43
@misc{1787440,
  abstract     = {This thesis aims to evaluate how the 2002 reform of the decentralization has changed Peru. The evaluation is focused on the fiscal decentralization, especially the tax collection of subnational governments. By identifying the obstacles of the Peruvian process we hope to be able prescribe how to minimize demerits, and optimize merits of decentralization. Our conclusions are that the current decentralization process has stable support both from the ruling parties and residents of Peru. The setbacks in the process are mainly due to Peru’s heterogeneous nature and the large inequalities among regions and individuals in the country. There are also large incapacities on the subnational level to handle greater responsibilities. To optimize the merits of decentralization, the Peruvian government needs to make great efforts to reduce these incapacities and to ensure a more equal distribution of the country’s wealth. They must also carefully tend to the challenge of increasing the subnational independence while keeping the national unity intact.},
  author       = {Glimeus, Linn and Bustad, Erik},
  keyword      = {Tax Policy,Peru,Decentralization,Fiscal Decentralization},
  language     = {eng},
  note         = {Student Paper},
  title        = {Evaluating Fiscal Decentralization in Peru},
  year         = {2011},
}