Unblocking Bottlenecks to Effective Resource Revenue Management in Peru
Oxfam America is working to examine and address issues that limit progress toward alleviating poverty in countries with large extractive industries (EI). Peru’s canon minero program requires distribution of substantial EI tax revenues to regional and local governments, yet social gains are inconsistent across the country.
Participants at a June 2014 meeting hosted by Oxfam in Washington, DC discussed the circumstances that impede effective use of canon revenue and offered suggestions for potential remedies.
Core impediments identified by the meeting participants include corruption at all levels of Peru’s government; misuse of canon disbursements at the regional and local level; and uneven institutional capacity to manage revenues in order to achieve equitable and meaningful social benefits.
Participants discussed a broad range of ideas that could help resolve these challenges. Strategies included developing alternative approaches to allocating and spending canon disbursements; promoting additional accountability and monitoring mechanisms; building necessary capacity at the individual and organizational levels; encouraging greater citizen engagement in the process; and using the resources of the country’s academic institutions.