DEMOCRACY AND GOVERNANCE IN PERU: AN ASSESSMENT Under contract to the U.S. Agency for International Development Contract No. AEP-I-00-96-90006-00, TO 5/ Contract No. 527-0-00-00-00121-00 Presented by: Management Systems International (MSI) 600 Water Street, SW Washington, DC 20024 (202) 484-7170 Original Assessment conducted by: Cynthia Sanborn, Team Leader Marc Chernick Francisco Eguiguren Bruce Kay Michele Schimpp March 29, 2000 Assessment Revised and Updated by: Cynthia Sanborn Francisco Eguiguren Bruce Kay July 10, 2000 REVISED VERSION TABLE OF CONTENTS CHAPTER I: EXECUTIVE SUMMARY ............................................................................................. 1 CHAPTER II: INTRODUCTION.......................................................................................................... 6 A. Historical Antecedents................................................................................................................... 6 B. Assessment Objectives................................................................................................................. 11 C. Team Methodology...................................................................................................................... 11 CHAPTER III: DEFINING THE DEMOCRACY AND GOVERNANCE PROBLEM................. 12 A. Consensus .................................................................................................................................... 13 B. The Rule of Law .......................................................................................................................... 13 C. Competition ................................................................................................................................. 14 D. Inclusion ...................................................................................................................................... 15 E. Good Governance ........................................................................................................................ 16 CHAPTER IV: ARENAS AND ACTORS........................................................................................... 17 A. The Legal Arena/Rule of Law...................................................................................................... 17 1. The Current Constitutional Framework........................................................................... 17 2. Political Manipulation of the Judiciary ........................................................................... 18 3. Judicial Reform............................................................................................................... 19 4. The Human Rights Situation........................................................................................... 21 5. Role of the Ombudsman.................................................................................................. 21 B. Competitive Arenas ..................................................................................................................... 22 1. The Electoral Process...................................................................................................... 23 a. Presidential Elections ............................................................................................ 23 b. Congressional Elections ........................................................................................ 24 c. Two Steps Forward: Municipal Elections and the “Quota Law”........................... 25 d. The Guardians of the System: Actors, Interests, and Possible Allies .................... 26 2. Parties and the Party System........................................................................................... 27 3. The Media as an Arena for Competition......................................................................... 29 a. Fragility of the Sector............................................................................................ 29 b. Absence of Political Information and Debate........................................................ 29 c. Intimidation and Self-Censorship .......................................................................... 30 d. Media in the Provinces.......................................................................................... 30 4. The General Elections of 2000: Competition and Controversy....................................... 31 a. The Vote Counting and its Aftermath.................................................................... 33 C. The Governance Arena ................................................................................................................ 35 1. Governance in the Legislative Branch: Representation.................................................. 36 a. Legislative Decision-Making, Debate over Public Policy..................................... 36 2. Governance in the Executive Branch: Cara Buena, Cara Mala .................................... 38 a. Cara Buena: Social Investment, Infrastructure Development................................ 39 b. Cara Mala: Concentration of Power ...................................................................... 40 c. Executive Branch Accountability.......................................................................... 41 3. Civil-Military Relations .................................................................................................. 41 4. Patronage and Public Sector Corruption......................................................................... 42 D. Decentralization and Local Government...................................................................................... 43 H:\INCOMING\July24\MSI-Submission\Fn-Email.doc i 1. Regions and Departments ............................................................................................... 44 2. Municipalities ................................................................................................................. 44 3. Central Government Control........................................................................................... 45 4. Democracy at the Local Level ........................................................................................ 46 5. Indigenous Peoples and Local Government.................................................................... 48 6. Local Government in Coca-growing Zones .................................................................... 49 E. The Civil Society Arena............................................................................................................... 50 1. The Fabric of Civil Society: Diversity and Fragmentation.............................................. 50 2. The Basic Conditions for Civil Society: Legal Framework and Finances...................... 51 3. NGOs and Civil Society.................................................................................................. 53 4. Critical Actors and Allies for Democracy....................................................................... 54 a. Human Rights Organizations................................................................................. 54 b. The Women’s Movement: Grassroots and Professionals ...................................... 56 c. The Catholic Church and Democracy.................................................................... 57 d. Business, Labor, and Democracy .......................................................................... 58 F. The International Arena and Future Scenarios............................................................................. 60 CHAPTER V: STRATEGIC AND TACTICAL RECOMMENDATIONS ..................................... 62 A. Strategic Filters............................................................................................................................ 62 1. Political Opportunity....................................................................................................... 62 2. U.S. Foreign Policy Priorities ......................................................................................... 63 3. Time and Resource Limitations ...................................................................................... 63 4. USAID’s Prior Strategy and Existing Program............................................................... 64 5. Activities of Other Donors.............................................................................................. 64 B. General Recommendations on Strategy and Tactics .................................................................... 65 C. Issue-Specific Recommendations and Priorities .......................................................................... 66 1. Justice and Human Rights............................................................................................... 66 2. Civil and Political Society............................................................................................... 68 3. The Legislature ............................................................................................................... 70 4. Mass Media..................................................................................................................... 71 5. Decentralization and Local Government......................................................................... 72 D. Summary of Recommendations and Priorities ............................................................................. 74 APENDIX A: PERSONS INTERVIEWED.........................................................................................