A project to unlock investment in Peru | Cámara de comercio Canadá-Perú
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A project to unlock investment in Peru

A project to unlock investment in Peru

 

In September 2024, the project Administrative Simplification and Unlocking Investment, promoted by the Consortium for Economic and Social Research (CIES) in alliance with the Manuel J. Bustamante Foundation (FMJB), was presented, with Radio Programas del Perú (RPP) as media partner. In this interview, Javier Portocarrero, executive director of CIES, explains the importance and details of the project.

 

1. What does this initiative propose?

The Administrative Simplification and Unlocking Investment project aims to generate policies, rules and actions to simplify administrative systems and contribute to unlocking public and private investment.

 

Through interviews with 34 experts from different sectors, we identified eleven administrative systems in need of problem solving. Of these, we prioritized three that have the greatest impact on large investments: the Public Investment, Control and Modernisation of Public Management systems.

 

2. What are the problems facing public and private investment?

In recent decades, the growth of the Peruvian economy has deteriorated, and a determining cause has been the fall in private investment, due to factors such as over-regulation in mining and other key sectors, as well as political instability.

 

According to the Mining Investment Attractiveness Index, Peru fell more than 40 places between 2018 and 2023. The main obstacles reported were red tape and social conflicts. In this and other sectors, there is a significant delay in the execution of large investments. According to the Comptroller General of the Republic, more than 12,300 projects are in ‘lapsed’ condition, without having received investment for more than three years from the date they were given the green light.

 

Furthermore, although progress has been made in terms of coverage to close the gaps, there is still much to be done in terms of quality: 56% of the departmental road network is in poor condition, 95% of the educational infrastructure is deficient and 92% of first level health establishments have inadequate infrastructure.

 

3. What is the project's work plan?

A first step will be to set up a Multi-Stakeholder Consultative Committee (MCC) made up of representatives from the public and private sectors, international cooperation and academia, who will accompany the project from the identification of problems, the execution of studies and the monitoring of implementation.

 

Subsequently, knowledge will be generated through the development of eight studies on prioritized topics: 1) Best practices in decentralized execution of public investment; 2) Blocked works: Causes, typologies and necessary changes; 3) The role of contracting in public investment; 4) Best practices in execution of Works for Taxes; 5) Strengthening the authority to simplify administrative processes; 6) Simplification of administrative processes and TUPAS in mining projects; 7) Simplification of administrative processes and TUPAS in transport infrastructure; and 8) Simplification of the national control system.

 

These investigations should result in roadmaps that include draft laws, supreme decrees, resolutions and other concrete actions. The project also contemplates the training of public servants, a strategic press campaign and the dissemination of findings with policy makers and other actors.

 

4. How does this project differ from others with the same objective?

By directly involving stakeholders from the diagnosis and receiving their feedback during the development of the studies, it ensures that the final recommendations are practical and actionable, facilitating their implementation. Furthermore, by generating roadmaps for improving public investment and management, the project will strengthen the state's institutional capacity to execute investments and provide services more effectively and efficiently. Administrative simplification will bring the state closer to citizens' needs, helping to close the gap between the state's offer and the demands of civil society.