Peru Productive Municipality: A virtuous formula of public - private management

Peru Productive Municipality: A virtuous formula of public-private management

09/05/2017

The plan includes the articulation of public-private initiatives focused on the importance of the territory for the promotion of local development, the role of the mayor to materialize the fulfillment of the needs of their locality, and the participation of citizens.

In the last decade, Peru has experienced sustained economic growth in comparison with the other countries in the region, with controlled inflation thanks to increased investment and private consumption, as well as efficient management of public finances. However, many of the benefits of economic growth are not perceived in all regions of Peru due to the lack of a productive development plan, or economic development in each municipality; the complex bureaucratic system for the use of state resources; the lack of preparation in the government teams of the municipalities; and the corruption that affects the vast majority of countries.

Poverty rates, according to data from the National Institute of Statistics, INEI, from 2006 to date have dropped from 49% to 22% of the population throughout the country. Lima has reduced poverty rates from 32% to 12% of its inhabitants in the same period, while the rural poor population was 79% in 2006 and currently means an 46% of its population. The most extreme is in the rural sierra sector, which in 2006 kept an 80% of its population in poverty and currently still keeps an 50% of its inhabitants in precarious situations.

These factors generate a lot of emphasis in the country on agricultural activity (the main source of the 40% is agriculture), and in this perspective, the active participation of mayors is part of the approach proposed by Sierra y Selva Exportadora, through its "Productive Municipality" plan, a municipal management model that generates the articulation of businesses with a market focus from the productive offer of less developed rural areas, to other larger, regional, national or international spaces, with the purpose of generating new opportunities for economic growth.

It highlights the role of the municipality that not only has a leader, such as the mayor, but also extends this participation to producers, associations, that is, the entire population.

Through this management, a recount is made of the various rules that allow private investment to make alliances with the public sector and carry out local development, because they are aware that investment brings with it the development of the peoples, which is why Public-Private Partnerships as mechanisms that will allow the economic growth of all.

For the fourth edition of the National Productive Mayor Award (PNAP) 2016, organized by the Productive Municipality Strategy program, which seeks to empower regional and local governments to carry out actions and public policies that generate economic growth, organized by Sierra and Selva Exportadora del Ministry of Agriculture and Irrigation (Minagri), almost 700 municipal authorities were registered to demonstrate their contribution to the local productive development, representing the 35% of the total of authorities of the country, between provincial and district, with the Amazon region standing out, with the 100% of their registered mayors, followed by the regions of Cusco, with an 98%, and Huánuco, with the 86% of their councilors.

In the first category, "Attraction of investment and trade" there were almost 250 registered (36%). In "Formation of public-private alliances", it reached almost 200 registrants (27%), and in the third category of "Execution of policies and productive development", it reached almost 200 registrants (28%). In the fourth category, "Cluster development", there were a fortnight of registrants (2%) and in the fifth category, "Execution of good practices of Productive Municipality", almost 70 registered (10%) were reached.

This strategy of public private management, in addition to having achieved great success in the production of agricultural crops, and in obtaining new markets for their exports, is part of encouraging the formation of clusters by value chain and investment poles with a view to the industrialization of agricultural production.

Source: Martín Carrillo O. - Blueberries Consulting