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USAID/OTI Peru Field Report
August 2002
Program Description
The OTI 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 is providing support in five key areas related to the transition: decentralization and local government strengthening; congressional reform; civilian-military relations; support for a Truth Commission to address human rights abuses committed over the past twenty years; and anti-corruption. OTI's FY 02 budget is approximately $7.5 million.
Country Situation
Small signs of an improved political climate emerged in August. First, the Peruvian Congress ratified the new Toledo Cabinet by a significant majority. New Prime Minister Luis Solari spoke before Congress to strike a balanced chord and to outline three key priorities of the Toledo administration: promoting economic development, reforming the State, and constructing an ethical society. Second, key civil society, political party and government representatives met to discuss and review progress on the 29 policy proposals identified in the National Accord signed in July. This standing group plans to meet on a regular basis to evaluate progress on the application of the agreed-upon policies by the government.
Despite these encouraging developments, President Toledo's approval ratings remained low; a survey of metropolitan Lima published on August 29 by the University of Lima indicated a 74.3 percent disapproval rating. The public outcry over reports that First Lady Elaine Karp had been receiving a $10,000 monthly salary from a Peruvian bank added to the President's low numbers; 63.4 percent felt the First Lady should dedicate herself solely to her public role. Karp ultimately resigned her position with Banco Wiese. In addition, President Toledo continues to face public censure for his refusal to submit to DNA testing related to a longstanding paternity suit.
The U.S. Congress renewed the Andean Trade Preferences and Drug Eradication Act (ATPDEA) in August. The law is valid through 2006, and provides for much-needed preferential trade benefits and lower tariff barriers for Peru. However, these benefits are conditioned upon Peru's anti-narcotics efforts, including certification by the U.S.
Violent demonstrations in Tarapoto by farmers in San Martin lasted for 10 days, and a general strike by citizens in Tacna, on the Chilean border, related to a proposal for establishing a free trade area there highlighted the growing number of anti-government protests in Peru. The economic costs associated with demonstrations create deepening financial pressures; the protests in Tarapoto are estimated to have caused over $10 million in damages. The police issued a report stating that in 2002 more than 800 protests have taken place in downtown Lima alone, resulting in an estimated average loss of 174 work hours per month for local businesses and the corresponding economic repercussions.
Media reports of renewed Shining Path activity, mostly concentrated in Peru's central jungle areas, are creating anxiety. The Shining Path is now said to be working in alliance with drug traffickers and offering more conciliatory and persuasive rhetoric. Although there is conflicting information about the true size and capacity of the Shining Path at present, the reports are fueling citizens' fears about a return to the terrorist violence of the 1980s and 1990s, and have sparked discussions about the need to strengthen police and/or military capability to combat this threat.
The 2002 - 2003 legislature is now in session. There is a new congressional directorate and changes in the leadership of most key commissions, including defense, decentralization, local government, and education. The national 2003 budget is a key part of the current congressional agenda; the executive branch has provided its draft request, which includes a 6.1% increase over 2002 mostly attributed to increased national debt and inflation.
Candidate registration for the November municipal and regional elections closed on August 19; campaigns are gathering steam and much of the country is papered with propaganda and candidate slogans. Although issues of resources and technical capacity continue to be reported, there has been no discussion of postponing these key elections, which represent the first major step in Peru's decentralization process. While plans to increase local resources and authorities are scheduled to enter into effect in January 2003, the Peruvian Comptroller's office publicly stated that it lacks the resources to provide the necessary oversight and audit functions to ensure adequate local government accountability for the additional resources they will be administering.
Minister of Defense Aurelio Loret de Mola announced that a new "White Book," outlining the political framework for Peru's national defense and security policy, is 80% complete. He noted that civil society input would be solicited in an upcoming national debate process through an email address established within the Ministry of Defense to receive citizen comments, and through publication of an outline of the document on the Ministry of Defense's website.
President Toledo and Chilean President Ricardo Lagos reached agreement on a number of bi-lateral cooperation policies, including standardization of arms expenditures.
Peruvian media reported that the Truth and Reconciliation Commission (TRC) was in danger of having to cease operations if additional funding from the Peruvian government was not forthcoming. However, funds were authorized for the TRC from Fedadoi (the Special Fund for Administration of Funds Illicitly Obtained, which manages funds recovered from illicit bank accounts) to keep the TRC operational. Efforts are underway to ensure that adequate funds are provided in Peru's 2003 national budget. The TRC conducted public audiences in Abancay and Tingo Maria, and conducted mass grave exhumations in Apurimac and Ayachuco areas.
Access to information remains a key obstacle in Peru's fight against corruption. The passage of Peru's Transparency and Access to Public Information Law in July was hailed as an important milestone. Nevertheless, the law has been widely criticized in the media subsequent to its passage, mostly for allowing excessive governmental discretion in determining what information is classified and what is public. A number of legislators are already presenting proposals for modifications to the law. In addition, only 3 of Peru's 16 Ministries have published budget and expenditures information as legally required.
The National Judicial Council ratified 88 judges and failed to confirm another 28; among those confirmed were Peru's six specially-appointed anti-corruption judges, who are now assured of being able to continue their key investigations into the Montesinos and other high-level cases of governmental corruption. An additional $77 million from illicit bank accounts was repatriated.
OTI HIGHLIGHTS
A. Narrative Summary
Highlights for the month of August are as follows:
- Civilian-Military Relations: Seven new grants were approved in August: two to the Center for Strategic Studies of Defense and Security (CEEDS) for a national meeting on security and defense for law School students and Peruvian Naval Academy students, and for four regional workshops on governance and national security; three to the Institute for Political and Strategic Studies (IDEPE) to hold nine meetings on the production of a "White Book" on National Defense, for a technical workshop for government officials on monitoring the defense budget, and for a series of workshops titled 'National Accord and Defense Policy'; one to the Andean Commission of Jurists for four workshops on national defense and security; and one to the Communication Initiatives Project, an association of university students, for four seminars for university students on civil-military relations.
Events held in August included the above mentioned grant to the Communication Initiatives Project; the beginning of a second series of round-table meetings between members of the media sector and representatives of the armed forces implemented by the Peruvian Press Council; and the continuation of training workshops on civil-military relations for public officials and community representatives in Peru's interior by CEEDS.
- Truth and Reconciliation Commission: Eight new grants were approved in August: one to the Institute for Investigation and Andean Development (IIDA) for workshops on the Truth and Reconciliation Commission (TRC) in Apurimac; one to the Association for Human Life and Dignity (APORVIDA) in Cuzco for an information campaign that will be conducted in coordination with the Commission's southern Andean regional office; and six grants to the TRC for psychological training for field staff, digital recordings, production and archiving of victim testimonies, data entry assistance, a series of ten workshops for key civil society leaders, and to partially fund Commissioners' expenses to attend regional public hearings.
Grants implemented in August included the above-mentioned grants to the TRC and to IIDA; initiation of filming of 'Paper Dove,' a film about an Andean community affected by political violence; the distribution of additional travel kits for mobile investigation teams; continued research on political violence in the northern Andean region; and a national campaign on women rights organized by the TRC.
- Decentralization/Local Government: OTI approved two new grants in this area in August: one to the School of Municipal Management for two local experts to participate in a workshop and produce a proposal for policymakers addressing gender equity in Peru's decentralization policy framework; and one to the NGO Andean Program for Technology and Human Development of Yauyos, to coordinate a roundtable meeting of OTI's grantees, USAID staff and other donors, aimed at facilitating networking, information-sharing and dissemination of best-practices as part of OTIs close-out strategy.
Activities implemented in August included the above mentioned grant to the School of Municipal Management; the continuation of a series of workshops on the legal framework for decentralization in the southern Andean region for local leaders, hosted by the Cuzco-based Bartolome de las Casas Center for Andean Regional Studies; and ongoing work on production of national-level information campaign materials for the Prime Ministers Commission on Decentralization. A preliminary presentation of the content of these informational TV and radio spots will be presented to the US Embassy community in September in a round-table meeting on the pending elections organized by USAID's Office of Democratic Initiatives.
- Congressional Reform: One new grant was approved in this area in August to the NGO Manuela Ramos Movement for training-of-trainers workshops in nine cities on the proposed constitutional reforms, for women leaders from grassroots organizations.
Grants implemented in August included a second workshop on the roles and functions of Congress for students, professionals and local leaders in Tumbes, near the border with Ecuador by the NGO "Public Initiative"; publication of the results of public hearings on proposed Constitutional reforms, which was distributed to legislators, academics, and other organizations by the Congressional Constitution Commission; additional performances of a play for high school students entitled "Hey! What's Congress?" by the Cuatro Tablas theatrical association; and the continuation of a second series of workshops on the roles and functions of Congress for more than 500 women representing grassroots organizations in the Lima metropolitan area by the community organization "Amazonas Women's Association."
- Anti-Corruption: OTI approved three new grants in August: two to the NGO PROETICA to conduct a study on corruption in the Lima metropolitan area (the study, modeled on a survey developed by Transparency International's Mexico office, will identify districts with the highest and lowest levels of corruption), and for a second national anticorruption conference (the first, held last year and also partially-sponsored by OTI, was the first of its kind and received extensive media coverage), scheduled for November 2002; and one to the Peruvian Comptrollers office for anticorruption workshops in four regions (Ayacucho, Cuzco, La Libertad and Loreto).
Grants implemented in August included initiation of work on the above mentioned grants; ongoing workshops on local government monitoring for local leaders and a local radio station organized by the NGO CECODES (see previous reports); and continued implementation of a pilot program with the Ministry of Justice providing legal support to unprocessed inmates in three prisons (in August alone, 28 public defenders reviewed almost 1,700 cases).
B. Grants Activity Summary
| Decentralization |
$ 33,392 |
2 |
| Civilian-Military Relations |
$ 135,036 |
7 |
| Anti-Corruption |
$ 217,599 |
3 |
| Congressional Reform |
$ 58,930 |
1 |
| Truth Commission |
$ 385,090 |
8 |
| Total (August 2002) |
$ 830,047 |
21 |
| Total (to date) |
$ 5,090,504 |
207 |
NEXT STEPS/IMMEDIATE PRIORITIES
In September, OTI will focus on programming its final activities in all five program areas. Staff will continue to monitor ongoing grants, gathering and systematizing information, which will be used to assess the impact of OTI's program in final evaluations and reports. In September and October, OTI staff will also be holding sectoral meetings including grantees and other donors, as part of its closeout strategy, to facilitate networking, information and best-practices sharing and dissemination, and effective discussions about plans for the future.
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