Feasibility Study on a Peru Municipal Capacity Development Program

Under contract to the Canadian International Development Agency (CIDA) and in partnership with the Canadian Embassy in Peru, in 1996-97 the Canadian Urban Institute (CUI) conducted a preliminary assessment mission to explore the feasibility of establishing a Canadian-sponsored municipal capacity development program in Peru. The assessment determined that deficiencies in urban service delivery in Peruvian cities could be attributed to resource constraints and poor municipal management practices as a result of low technical knowledge. The mission concluded that there was significant need and opportunity related to the establishment of a Canadian-supported municipal capacity building program in the country.

Port of Callao

Funding Agency
Canadian International Development Agency (CIDA) and the World Bank

Timeframe
1996-1997

Geographic Focus
Peru

Project Partners
CUI worked in partnership with CIDA, the Canadian Embassy in Peru and the Peru Urban Rehabilitation and Management (PURM) Program team (comprised of officials from the Government of Peru, the World Bank and the Inter-American Development Bank).

Background
Peru has a tradition of central government predating the advent of the 16th century Spanish conquistadores. In 1995, the Government of Peru initiated its first steps towards decentralization and began to develop the Urban Rehabilitation and Management Program in partnership with the World Bank and the Inter-American Development Bank. Taking these developments into account, CIDA commissioned a study on "Decentralizations in Peru: Status and Prospects." Following one of the study’s main recommendations, CIDA commissioned the Geomatics Industry Association of Canada to explore the potential for the establishment of a property cadastre system for use in Peruvian municipalities. A key finding of this investigation was that there was a strong need for a municipal strengthening program in Peru. It concluded that municipalities lacked the legitimacy, technical knowledge and resources to function in an effective and autonomous manner. Consequently, municipal strengthening emerged as a priority for CIDA’s programming in Peru.

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Project Description
The project was guided by the following set of objectives:

• To obtain a broader analysis of the capacity weaknesses and priorities for external assistance towards strengthening local governments.
• To propose additional areas to be included in a municipal strengthening program beyond those proposed by the Geomatics Industry Association of Canada.
• To build a network of Peruvian participants for the development of the project.
• To build a working relationship with the World Bank and the Inter-American Development Bank (which were supporting the Urban Rehabilitation and Management Program that was then newly approved).
• To develop a methodology and criteria for selection of municipalities/institutions and recommend an initial set for further examination.
• To propose a plan for the next stage.

The mission found that there was a great need and opportunity for the creation of a Canadian-supported municipal strengthening program in Peru. It was proposed that CIDA fund the creation of the Canada-Peru Municipal Program on Strategic Urban Management to strengthen the management capacity of selected Peruvian municipalities through a systematic and focused transfer of Canadian expertise and experience.

The following three program objectives were identified:

• To support the formulation of integrated municipal strategy development processes and implementation of demonstration projects in 3-4 urban areas in Peru.
• To support the development and diffusion of Peruvian municipal management expertise through education and awareness.
• To promote the creation of mutually beneficial linkages (business and professional) between Canada and Peru.

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Approach
A multi-disciplinary team was formed to achieve the objectives of the mission. The methodology applied consisted of two main activities:

• Information related to municipal capacity development in Peru was collected and synthesized. An annotated bibliography was produced.
• Field assignments were undertaken in Washington, DC and Lima, Peru. Interviews were conducted with and documentation collected from over 40 professionals from the World Bank, the Inter-American Development Bank, CIDA, the Canadian Embassy, USAID, International City/County Management Association and Canadian organizations operating in Peru, as well as Peruvian national, regional and local governments, municipal institutions and associations, education institutions, community and private interest groups.

CUI also explored the potential for coordination and links between its proposed Canada-Peru Municipal Program on Strategic Urban Management and the existing Peru Urban Rehabilitation and Management (PURM) Program that was initiated by the Government of Peru, the World Bank and the Inter-American Development Bank in 1995. CUI participated in the Logical Framework Workshop of the PURM Program in Lima in 1997. The workshop was the first in a series of participatory needs assessment workshops with five target municipalities of the PURM Program. The objectives were to inform mayors and municipal officials of the program, undertake an initial assessment of the needs of each municipality and generate consensus on the project design and the work plan for the set-up phase.