Peru's Decentralization Policy Faces Criticism Over Corruption and Inefficiency

Twenty‑five years after Peru began implementing decentralization, experts argue the programme has not delivered tangible improvements in citizens' well‑being. They attribute the shortfall to pervasive corruption, mismanagement of public funds and a disconnect between development plans and actual spending, rather than a lack of professional capacity in the regions.

Sociologist Iván Castillo and former regional governor Moisés Panduro stress that the process is fundamentally political and requires stronger citizen participation to act as a control mechanism. Castillo said, “El verdadero sujeto de la descentralización no son las instituciones, sino la ciudadanía.” Both call for a deep reform to clarify regional functions, improve fiscal oversight and close persistent social gaps.

The discussion points to Peru’s substantial regional financial resources, which remain under‑utilised due to these governance flaws, and signals a need for a comprehensive overhaul of the decentralisation framework under the new government.