Good Governance and effective state capacities in Peru

Peru should enhance its governance and state capacity to prioritise and effectively implement the policies highlighted in the preceding chapters. Better governance is not an end in itself but a means to achieve the policy objectives needed to boost inclusive development. In particular, tackling corruption should both increase the trust citizens have in their government and build state legitimacy. The governance of the judiciary and legislature should improve, while central government requires better co-ordination and enhanced leadership to drive long-term reforms. Much has been done to integrate the private sector in expenditures and investments, but better management of the process is needed to avoid inefficiencies and unexpected fiscal costs. At the regional level, the allocation of public resources does not contribute to reducing sub-national disparities, and local governments require more capacity to improve their policy making. Although the environmental institutional framework has improved in recent years, implementation of public policies to foster environmental sustainability remains weak.