PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE Report No.: AB4987 Justice Services Improvement Project II Project Name Public Disclosure Authorized Region LATIN AMERICA AND CARIBBEAN Sector Law and justice (100%) Project ID P110752 Borrower(s) REPUBLIC OF Implementing Agency Av. Paseo de la República s/n, Palacio N 4to Piso, Oficina 444 Peru Tel: (51-1) 719-6300 Fax: (51-1) 427-0292 [email protected] Public Disclosure Authorized Environment Category [ ] A [] B [ X] C [ ] FI [ ] TBD (to be determined) Date PID Prepared September 30, 2010 Date of Appraisal January 21, 2010 Authorization Date of Board Approval Expected November 18, 2010

1. Country and Sector Background

Peru has maintained a sound macroeconomic framework and, as a result, has been able to benefit from these policies in the form of high growth and significant poverty reduction. Between 2004- 2008, Peru's GDP grew at an average rate of 7.6% and, by 2008, the year before the onset of the

Public Disclosure Authorized economic crisis, it reached 9.8%, among the strongest growth performances in Latin America and the Caribbean. Fast economic growth has been accompanied by poverty reduction and job creation. Poverty declined from 48.6% in 2004 to 34.8% in 2009, a decline of 13.8 percentage points. While inequality remains high, Peru is making progress in addressing it. Economic growth decelerated sharply in 2009, as a result of the global crisis, but remained positive.

The World Bank Group’s Country Partnership Strategy (CPS) for 2007-2011 (Report No. 37913- PE) discussed by the Executive Directors on December 19, 2006 outlines three pillars reflecting Peru’s strategy for development: (i) Economic Growth; (ii) Social Development; and (iii) Modernization of the State1. While justice sector reform cuts across each of the three pillars, the CPS explicitly recognizes the need to improve the justice system and reduce corruption within the context of modernizing the State and service delivery. In particular, Peru’s Ministry of Economy and Finance (MEF) has requested Bank support for a follow-on, second stage project

Public Disclosure Authorized to: (i) scale-up components under the first project (which focused only on 10 out of 29 judicial districts); (ii) provide technical assistance for the implementation of Peru’s new criminal procedural code (CPC) which was adopted by Congress in 2006 and introduces oral proceedings

1 See Country Partnership Strategy for the Republic of Peru 2007-11 (Report No. 37913-PE). and greater transparency in both investigative and adjudication processes; (iii) continue with improvements in professionalizing human resources management; and (iv) strengthen access to justice in rural and peri-urban areas.

Peru’s Justice Sector The proposed Justice Services Improvement II Project (the “Project”) involves the justice sector’s key agencies: (i) Judiciary; (ii) Ministry of Justice; (iii) National Judicial Council; (iv) Judicial Academy; and (v) Attorney General’s Office (AGO). Below is a brief explanation of their mandates and some of the recent sector developments as well as continuing challenges.

The Judiciary is in charge of administering justice through a hierarchy of courts in the country. It is comprised of: (i) a supreme court, (ii) appellate courts, (iii) trial courts, and (iv) formal justice of the peace courts. The Judiciary is governed by an Executive Council and a presiding justice of the supreme court—the Chief Justice. Services of the Judiciary are delivered in each of the country’s 29 judicial districts, which have a corresponding territorial district. The Ministry of Justice (MINJUS) is a part of the Executive branch and oversees the sector’s development in broad terms. It proposes reviews of the legislative framework and is responsible for providing Public Defender services and free legal services to the citizenry. The National Judicial Council (Consejo Nacional de la Magistratura—CNM) is in charge of selecting and appointing judges and prosecutors, except when their position is filled through election. The decisions of the CNM regarding the assessment and ratification of judges are not subject to judicial review, and the CNM is an autonomous institution, not dependent on the Judiciary.

The Judicial Academy (Academia de la Magistratura—AMAG) forms a part of the Judiciary and is in charge of the instruction and training of judges and prosecutors at all levels. Its Board of Directors is comprised by two Supreme Court judges, two Supreme Court prosecutors, a representative of the CNM and its Director General. An indispensable requirement for promotion is having passed the specialized training required by the Judicial Academy.

The Attorney General’s Office (AGO, or in Spanish, the Ministerio Público – Fiscalía de la Nación) has functioned as an independent institution in Peru’s justice sector since 1981. Fiscales do not represent the government; this role is carried out by another group of government attorneys called Procuradores (or state attorneys under the Ministry of Justice). Instead, the fiscales or prosecutors’ role is to oversee the investigation of criminal activity and represent the interests of society to prosecute potential wrongdoing.

Recent Sector Developments

In 2008-09, procedural changes were introduced by the new criminal procedure code (CPC), which was formally passed by Congress in 2006. The new CPC included the gradual expansion of the fiscales’ role in criminal proceedings. It makes the fiscal responsible for overseeing the investigation and conducting the prosecution of alleged crimes. Checks on any abuses of these powers, especially as regards the violation of due process rights, will be provided by a new category of judges – the jueces de garantía -- whose authorization is needed for arrest warrants, searches and seizures, use of pre-trial detention and similar actions. (It bears mentioning that under the prior system, there was no comparable check on the instructional judge’s ability to undertake such actions as part of his/her investigation). Fiscales, in coordination with these and the trial judges, will also be able to recommend abbreviated proceedings and alternative sentencing.

Also in 2009, a Judicial Ethics Commission was established as part of the Judiciary’s Internal Anticorruption Office, known as the “OCMA” (Oficina de Control de la Magistratura). The Commission will work with a software that permits cross-checking data related to the declaration of assets by judges and other judicial personnel and can recommend cases to the OCMA, or CNM in case of a justice of the supreme court.

Challenges Facing the Sector

Despite advances in criminal procedural reform and more transparent processes, Peru’s justice sector still faces several challenges. Although court management models were developed under the Bank’s first Justice Services Improvement Project and performance contracts were introduced in 10 (out of the 29) judicial districts of the Judiciary, there remains considerable room for improvement. Corruption continues to present a serious problem--essentially two types of economic barriers are faced by users: official costs and indirect or informal costs. Official costs include court costs and attorney fees, while indirect or informal costs include the litigant’s opportunity costs for the time invested in the process or bribes to accelerate a process. Both types of costs place a heavy burden on the financial resources of the poor. Even when court fees are waived for poor litigants there are unavoidable costs, such as travel expenses for the rural population, opportunity costs for hours not worked, and attorney fees.

Another challenge for the sector is poor technical and professional development. Although the Judiciary and the Attorney General’s Office (AGO) have the authority to fill vacancies directly, the Judicial Council (CNM) is the sector institution in charge of selecting and appointing judges and prosecutors. However, despite some progress in better evaluating the quality of judicial decisions, no effective and permanent systems are in place for the selection, performance evaluation, training, and removal of judicial staff. Objective criteria for these processes are also absent. The recently adopted Judicial Career Law seeks to bring about improvements in these areas by focusing on merit-based selection and regular examinations and evaluations. A related challenge to professional development is that of weak accountability mechanisms--corrupt behavior is both a cause and result of judicial inefficiency. In the fight against corruption, the Judiciary has made some progress in detecting and exposing cases of corruption through its Internal Anti-corruption Office (OCMA).

One of the greatest challenges faced by Peru’s justice sector was a lack of coordination between key agencies, a notable achievement of the first Bank-supported project (approved in 2004). This coordination has resulted in the rationalization of services and the joint determination of sector-wide priorities such as the adoption of a Judicial Career Law. Such coordination is critical for the effective implementation of the CPC as it requires substantially different responsibilities for judges and prosecutors, requiring separate as well as coordinated training, and a specialized selection process for personnel. 2. Objectives

The Project development objective of the proposed Justice Services Improvement Project II (the “Project”) is to improve the quality of service delivery in the 5 participating institutions (i.e. Judiciary, Ministry of Justice, Attorney General’s Office (AGO), Judicial Council and Judicial Academy) and enhance access to justice with a focus on citizens’ needs for justice services.

This Project seeks to support the to modernize public services (one of the three key pillars of the Country Partnership Strategy) through the provision of technical assistance for improvements of the justice sector. More specifically, the Project would support a coordinated approach to reform and joint policy-making in the sector among 5 key agencies as well as scale up the first Justice Services Improvement Project which was limited to only 10 judicial districts. Thus, the Project will focus on performance improvements in service delivery in all judicial districts, including continuing efforts in professionalizing human resources management, and enhancing access to justice at the national level (i.e. not specific to a particular judicial district) as well as strengthening transparency through support for oral procedural reform in criminal justice.

Key indicators include the reduction in time/speed of trial (from beginning to end of trial process) and the increase in number of consultations in legal aids centers administered by the Ministry of Justice (ALEGRAs). Other indicators include measurable improvements in the following areas: (i) reduction in the duration of judicial processing time in criminal cases; (ii) stronger oversight capacity by organs charged with control of corruption; and (iii) the expansion of justice services to Peru’s poorest communities, including legal aid.

Project components include:

(a) Improved Justice Services Delivery-Component 1: The objective of this component is to support improvements in procedural processing time and attention to users of justice services. The Project will provide technical assistance (TA) to improve the quality and timeliness of services offered by the Judiciary and the AGO, specifically to the Superior Courts and selected regional AGOs. A subcomponent will address the consolidation of strategic planning and result- based management through ‘deconcentrating’ specific procedures and improving planning capacity in all of the 5 Participating Institutions (Judiciary, Ministry of Justice, AGO, Judicial Council and Judicial Academy). Another subcomponent will optimize the operation of the courts and AGOs through a more articulated approach, coordinated between administrative and jurisdictional functions, including support for TA, information technology (IT), minor works and strengthening central administration functions through change management. A specific area of focus will be the implementation of the Criminal Procedure Code (CPC) in all 5 Participating Institutions to conduct cases under the new CPC and introduce oral proceedings more broadly. Each of the participating institutions requires technical assistance for the implementation of the new CPC and, while some of the technical assistance will be institution-specific, the Project will also focus on enhancing inter-institutional coordination, including for the management of caseload data within and among Participating Institutions pursuant to the provisions of the CPC. Peru has begun implementation of the CPC in a staged process, thus learning from experiences in smaller departments and by modifying implementation accordingly.

(b) Improved Human Resources Management Capacity - Component 2: This component seeks to enhance the capacity of justice sector personnel through a performance-based methodology of selection, evaluation, promotion and sanction, and through more integrated training programs. This process would include a greater focus on reforming ‘institutional values’ including improving interpersonal skills, the work environment and a stronger service vocation toward the population. One subcomponent will focus on strengthening the human resources management capacity of the CNM. Activities will include the development of professional, merit-based profiles for magistrates, judicial personnel and prosecutors, among others. These actions will be jointly undertaken among the 5 Participating Institutions so as to share a common vision for the development of job profiles and competencies, from judges to prosecutors to public defenders. Another subcomponent will develop the specific skills of judges, prosecutors, MINJUS public defense staff and other personnel through support to the Judicial Academy (AMAG). Activities will include systemizing the identification of learning needs, the development of planning and adapted learning tools and the design and implementation of coordination mechanisms with other (other than the 5 participating agencies) institutions of the sector.

(c) Enhanced Transparency and Access to Justice-Component 3: This component aims to develop a stronger anti-corruption strategy for the Judiciary, including training for magistrates and personnel of the OCMA (Anti-corruption Office of the Judiciary) and ODECMAs (regional offices). This will be supported through TA for a more consistent application of existing regulations, dissemination of the functions and achievements of the OCMA, and enhancing the efficiency of their activities and greater respect from the population towards judicial decisions. This first subcomponent will also support the design and implementation of a communication strategy focused on promoting a cultural change both internally to sector agencies and externally among Peruvian society. A second subcomponent seeks to enhance access to justice for resource- poor citizens, including support for legal aid and conciliation services through the Ministry of Justice (ALEGRAs) and through promoting participatory campaigns with civil society. This subcomponent will also support the development of a public education campaign (called PRONELIS) and provide TA and equipment to the Ministry of Justice.

(d) Project Management-Component 4: This component seeks to maintain and/to strengthen the Project Coordination Unit (PCU), including strengthening procurement, financial management and monitoring and evaluation capacities within the Judiciary (where the PCU is located) to implement the Project on behalf of the 5 Participating Institutions. The Operational Manual of the first project has been revised and updated to make adjustments based on lessons learned in the administration of the PCU (e.g. having participating agencies transfer counterpart funds to the PCU so that providers only need to receive one payment), and to include technical specialists knowledgeable of the work of the AGO as the additional agency.

3. Rationale for Bank Involvement

Given the challenges facing Peru’s justice sector, various institutions are currently undergoing a process of modernization and restructuring. The Ministry of Economy and Finance (MEF), along with the Ministry of Justice, the Judiciary (headed by the Supreme Court), Judicial Council, Judicial Academy and the Attorney General’s Office (AGO) jointly requested the Bank’s support to address the above-mentioned sector challenges; specifically, a project to address the short-to-medium term needs of the sector, building on the foundation laid by the first Bank-financed justice project. Working with these five institutions is fundamental to both broader legal and judicial reform as well as, more specifically, the successful implementation of the Criminal Procedure Code (CPC) and its systemic reforms. These 5 institutions are the main actors in charge of case processes and court trials using the oral, adversarial method, and the Bank’s experience in justice reform as well as the previous justice project--under which many inter-institutional coordination mechanisms were developed--places it in a unique position to provide technical assistance. To this end, the Government of Peru (GoP) is seeking technical assistance from the Bank for the implementation of the CPC. In essence, the GoP is interested in ensuring management capacity in addition to technical knowledge within the relevant institutions.

4. Financing

Source (US$m.) Borrower 10 International Bank for Reconstruction and Development 20 Total 30

5. Institutional and Implementation Arrangements

The Project would continue the institutional and implementation arrangements followed under the first Justice Services Improvement Project, and now includes representation of the AGO as a member of the Project’s Steering Committee.

The heads of the Judiciary, CNM, AMAG and MINJUS and AGO comprise the membership of the Steering Committee, which is responsible for the Project’s policy oversight, inter- institutional coordination. The Project Coordination Unit (PCU) reports to the Steering Committee for overall project oversight and strategic direction, administrative and budgetary purposes. The PCU is located in the Judiciary and the Project Coordinator reports directly to the President of the Supreme Court. Each participating judicial district involved in the implementation of activities will have assigned local staff. Liaisons of each participating institution will also work with the PCU’s technical staff on each component to ensure close coordination for the carrying out of specific activities. The specific roles and responsibilities of the Steering Committee, the PCU, including profiles and the tasks of liaisons as well as judicial district staff, are defined in the Operational Manual.

A Subsidiary Agreement between the MEF and the Judiciary will outline the Participating Institutions’ responsibilities to ensure an efficient and continued coordination throughout the Project’s implementation, including the commitment of counterparts’ funding as established in the Project’s Operational Manual. 6. Benefits and Risks

The justice reform process in Peru has entered a critical stage following the sector strategy called “CERIAJUS” (Special Commission for Reform of the Administration of Justice) some years ago. This Project provides an excellent opportunity to engage the Judicial and Executive branches in a concerted approach to initiate sustainable institutional reforms that improve the quality of the justice services and enhance not only the responsiveness of sector agencies, but also their credibility with the Peruvian population. The risk rating for this Project is modest. The inclusion of the AGO came at the request of the other four justice sector institutions involved in the first project. Their rationale was that little can be achieved in criminal justice reform without the AGO; the latter being such an important actor in the implementation of the new CPC. This is a positive development, both because of the AGO’s role in the sector and because these institutions are often prone to institutional rivalry.

7. Contact point:

Contact: Lisa L. Bhansali Title: Adviser Tel: (202) 473-4213 Fax: (202) 522-3099 Email: [email protected] Location: Washington, DC

8. For more information contact:

The InfoShop The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 458-4500 Fax: (202) 522-1500 Email: [email protected] Web: http://www.worldbank.org/infoshop