Donors and decentralization in developing countries : insights from AID experience in Peru

This goal was supported by A.I.D. from 1979-1987 through two major projects: Integrated Regional Development (IRD), which aimed to improve regional planning and investment in the Sierra, and Disaster Relief, Rehabilitation, and Reconstruction (DRR), which supported recovery from floods and drought. Both projects used decentralized organizations, especially Departmental Development Corporations (CORDES), as planning and implementing agencies. A.I.D. also supported decentralization activities with Program Development and Support Funds. This study reviews these efforts and their historical context, assesses their contribution to decentralization in Peru, and compares them with experiences in other developing countries. According to the report, the A.I.D. projects present a strong case for decentralization in Peru. Most DRR works were completed within three years, while similar donor-assisted projects undertaken by central agencies have suffered long delays due to the glacial pace of disbursements, excessive red tape, and overcentralization of authority. IRD created viable regional planning capabilities using local personnel, simple analytic techniques, and data on local conditions; stimulated substantial contributions of local resources for construction; and facilitated relatively successful community-based maintenance. On the basis of these experiences, the report provides recommendations for improved donor involvement in decentralization efforts.