8. Political, economic and administrative decentralization to favor a comprehensive, harmonious and sustained development of Peru

We commit to develop a comprehensive political, economic and administrative decentralization, progressively transferring national government competences and resources to regional and local governments so as to eliminate centralism. We will build a system of political, economic and administrative autonomies, based upon the application of the principle of subordination and complementarity among national, regional and local State governments’ levels, so as to strengthen the latter and encourage the growth of their economies.

With this objective the State: (a) will support the administrative and financial strengthening of regional and local governments (b) will institutionalize citizen participation in political, economic and administrative decisions; (c) will promote efficiency and transparency in public utilities regulation and supply, as well as in the development of infrastructure in all the territorial spheres; (d) will establish a clear definition of functions, competences and coordination mechanisms among the three government levels; (e) will develop regional competitiveness platforms aimed at local and regional economies’ growth; (f) will develop a tax resource collection, budgetary and public expenditure structure including compensation mechanisms to ensure equitable territorial and social distribution within a framework of macroeconomic stability and fiscal and monetary balance; (g) will include the necessary mechanisms to improve management capacity, competition and efficiency of public and private entities, as well as business and productive chain competitiveness at national, regional and local levels; (h) will favor the creation of macro regional spaces from a geoeconomic integration perspective; (i) will favor inter-municipal and inter-regional partnership for dealing with specific issues; (j) will foster access to capital at regional and local levels, particularly for micro-, small- and medium-sized businesses; and (k) will foster budgetary compensation mechanisms for natural disasters and other cases, according to the degree of poverty in each region.