Effective donor support for decentralization : the Peruvian experience in comparative perspective

supported decentralization efforts of the Peruvian Government through two major projects -- the Integrated Regional Development project and the Disaster Relief, Rehabilitation, and Reconstruction project -- as well as program development and support activities. Drawing on the Peruvian experience, this paper examines some key issues and working hypotheses identified in the recent literature on decentralization in developing countries. According to the report, the A.I.D. projects resulted in decentralized planning and implementation capabilities that are more flexible, efficient, responsive, and innovative than those of the central government. The projects also enhanced the abilities of decentralized organizations to mobilize and manage resources, strengthened interorganizational networks at the regional and local levels, reinforced the private sector, made positive contributions to Peru"s economic development, and reached economically and socially disadvantaged groups. The efforts also contributed to significant institutional reform at the national level. On the negative side, analysis of the Peruvian case suggests that the current literature does not adequately consider the mobilization of political support for decentralization, and current thinking about design does not adequately address the frequent need for institutional reform in the central government or the ability of donors to support decentralization.