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USAID/OTI Peru Field Report
February - March 2001
Program Description
OTI's program in Peru was initiated in February 2001 to support the democratic opening created by the fall of President Alberto Fujimori's government in November 2000. OTI will provide support in four key areas related to the transition: decentralization and local government strengthening; congressional reform; civilian-military relations; and support for a possible Truth and Reconciliation Commission to address human rights abuses committed over the past twenty years. OTI/Peru's FY 2001 budget is approximately $3 million.
Country Situation
Peru is experiencing a dramatic political transition that began with the resignation of President Fujimori. The transition has been spurred - and complicated - by revelations of massive corruption within the Fujimori regime uncovered by Vladimir Montesinos, the ex-director of Peru's intelligence service (the SIN). The extent of this corruption is brought to light each day with the unearthing of new videos from a massive library of videotapes of bribes and secret negotiations Montesinos surreptitiously recorded. The Peruvian military's already-damaged image has been further eroded, with several top-ranking officers now in jail on corruption and other charges. Many Congressmen and local government leaders have also been discredited for their involvement in Fujimori's bid for constitutional support for a controversial third-term re-election in 2000, as well as other legislative issues. The press has also been dramatically weakened and its credibility questioned with the appearance of major media owners in the "vladivideos" (as they are referred to in the press) accepting payments for slanting media coverage in support of the Fujimori campaign.
A transitional government is now in power, led by current President Valentin Paniagua, and elections for a President, Vice President and a new Congress are scheduled for April 8, 2001. After setting new elections, the Paniagua government began implementing electoral reforms and replaced the single-district voting system, which facilitated excessive central government influence in Congress, with a multi-district system that sets the stage for a more representative and accountable body. The mood in response to the installation of a new transition government and elections has been one of optimism, though this is tempered by the disillusionment stemming from the scandal that continues to unfold and shock on a daily basis.
The electoral campaign process has been an interesting one. Peru's electoral system requires that for a Presidential candidate to be elected, he or she must receive at least 50% plus one vote. Failing this, a runoff is required 30 days after the first-round outcome is declared. There are no fewer than eight presidential candidates on the ballot. The three leading candidates, as of April 1, are Alejandro Toledo, who opposed Fujimori in the last election and leads the polls; Lourdes Flores, a lawyer and former Congresswoman who, if elected, would be the first woman president of Peru; and, surprisingly, Peru's ex-President Alan Garcia, who left Peru in disgrace in 1992 but has "triumphantly" returned to run again. The campaign, which began in December with promises to stick to the issues, quickly devolved during March into a mud-slinging contest that has so typified elections here. Peru's new Congress will be elected in the first round.
The transition government, led by Valentin Paniagua, enjoys a high level of credibility both within and outside of Peru. The interim government and cabinet consist primarily of highly respected career professionals from several political groups, such as Javier Perez de Cuellar, former secretary general of the United Nations, who has been appointed Prime Minister in the transition government. The current government has repeatedly committed itself to decentralization and transparency during this interim period. Nevertheless, while the transition government has begun to implement change, there appears to be a desire to leave most major policy initiatives to the permanent government that will be inaugurated in July 2001.
One issue currently in the public eye is the proposed Truth and Reconciliation Commission. The Commission would examine human rights abuses committed during the 1980's and 1990's, when the government was fighting two terrorist groups, the Shining Path and the Tupac Amaru Reolutionary Movement (MRTA). It is estimated that over 30,000 people died during this period. Mass graves have been uncovered, along with other evidence of significant abuses, and there is an increasing public demand for information, compensation and justice for the wrongs committed, especially in regions of the country most affected by the government's efforts to bring the two groups under control. A commission established in November 2000 has presented a draft resolution to the President that would establish a Truth Commission by Presidential decree. The commission has also secured written commitments to this initiative from all leading presidential candidates. The Truth Commission is an important and controversial topic that elicits differing opinions and concerns in different sectors of Peruvian society including the military, ordinary citizens, and human rights activists. The human rights community is pressing hard for its establishment by the transition government in the hope that this will ensure follow-through by the permanent elected government. This will be an issue which OTI and others will be following closely as it progresses.
OTI HIGHLIGHTS
A. Narrative Summary
During the months of February and March, OTI focused on establishing program priorities and good coordination with the rest of USAID. OTI will work closely with each office within the Mission, but particularly with the Office of Democratic Initiatives. OTI is also collaborating closely with the Office of Alternative Development, which is conducting activities in local government and decentralization. OTI/Peru has contracted with Creative Associates International, a U.S. consulting firm, to implement its activities. Creative Associates is now fully staffed and operational.
While OTI has established an initial program strategy, it is expected that alterations may have to be made once a new, permanent government takes office in July. OTI has identified four priority program areas:
- Civilian-Military Relations: A confluence of actors in the military and other areas of the government have indicated their willingness to improve dialogue on civilian-military issues, and recognize the need for far-reaching reforms within the military. The window of opportunity for these reforms is short, and the importance of programming activities in this area during this transition period is critical to fostering positive change. In March, OTI conducted a civilian-military assessment in Peru and is currently in the process of developing a short-term strategy and implementation plan for immediate activities; these will be re-assessed and evaluated following the inauguration of the new government in July. Short-term activities will likely include candidate dialogues and debates in the second round of elections; a variety of discussions between key civilian and military leaders on key topics, both within and outside the capital, journalist training, and important discussions to increase understanding about the Truth Commission, which is a major source of anxiety within the military.
- Truth Commission: OTI has discussed this issue with a variety of actors to gain perspective on expectations and priorities within Peruvian society, to determine the type of support, if any, would be appropriate to provide. It is probable that as the process moves forward, OTI would provide support for information campaigns, workshops, etc. to ensure that those involved have clear expectations, understandings and opportunities for input; and possibly some technical assistance to the Commission itself, if established, such as providing international expertise.
- Decentralization/Local Government: Decentralization is consistently mentioned in the political debate, but despite promises to be proactive in this area, the Paniagua government has done little to dismantle their centralized structure of government, which is concentrated in the Ministry of the Presidency. This office was created during the Fujimori regime to control virtually all local-level resources. OTI is currently developing its action plan in this area, which will be coordinated with other USAID offices to ensure that OTI is establishing a platform for the future through short-term, high-impact programs and projects. OTI is planning to work in part through some of the regional municipal associations that have emerged in the past few years and which show promise of being an important force for local-level involvement in the decentralization policy process. OTI expects to fund several initial projects in key regions of the country during the next few months that will be directed at local-level capacity building for participatory and transparent governmence.
- Congressional Reform: OTI will begin to design its programs in this area in the coming weeks, once the results of the congressional election are declared and there is a better indication of the composition of the new Congress. Likely activities will be short-term training on key topics such as defense spending, as well as more general training and orientation for new legislators on democratic values, political decision-making, etc. There are several highly qualified Peruvian NGOs that have expressed interest in working in this area.
B. Grants Activity Summary
OTI/Peru has funded its first activity, a very well attended "Conversatorio," or public conversation, between leading experts in anti-corruption and democratic processes.
C. Indicators of Success
OTI's first grant to fund a public discussion on corruption was very well received. It was simulcast within Lima and has since been broadcast several times on local television stations in other parts of Peru.
D. Program Appraisal
Although OTI has not yet funded many projects, some important achievements should be noted. First, OTI has been successful in initiating important contacts in all of its program areas, and has established positive working relationships with the U.S. Embassy and with USAID offices. OTI also has proposals in development in all of its program areas and expects to be implementing key activities in at least two areas (decentralization and civilian-military relations) during the next six weeks.
NEXT STEPS/IMMEDIATE PRIORITIES
OTI will be holding a Strategy Session from April 19-21, with the objective of developing concrete program strategies in each of its four program areas. Participants in the session will include OTI and Creative Associates local and headquarters staff as well as key personnel from USAID/Peru, including members of the Democratic Initiatives Team.
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