investment in this sector, which some have cited as partially responsible for the weakness of the sector,

would require legislative change, and more effective lobbying for such by the major media interests

themselves.  Effective regulation of public advertising requires greater political will on the part of the

government.

Opportunities:  

International pressure can play a critical role in assuring greater respect for freedom of

the press, and numerous international organizations have focused attention on the Peruvian case.  The

OAS has included restoration of press freedom, regulation of public advertising, and legislative changes

to assure equal access to the media by all candidates during electoral campaigns, on its agenda of

proposed reforms, along with the resolution of certain high profile media freedom cases.

For leaders of the political opposition and civil society organizations, there is freedom in selected sectors

of the media, such as on cable TV, a number of radio stations and newspapers in the capital, as well as a

variety of TV, radio, and print media in the provinces.  Although there is room for improvement, it

appears that many journalists have the basic skills to do good investigative reporting.

Recommendation:  

The team recommends modest support for media

watchdog  organizations 

that can

monitor the media, document violations of press freedom, track the use and abuse of public advertising,

and maintain international attention on these issues.  It also recommends enabling such groups, or other

human rights organizations, to provide legal assistance for journalists or media owners embroiled in

high profile cases.  A few organizations are already doing these activities on their own, and some receive

funding from other donors. USAID and the U.S. Embassy's PAS might be able to complement these

efforts in strategic ways.

5.

Decentralization and Local Government

Problem: 

Municipal governments are underfunded through direct revenue transfers and are overly

dependent on Executive level budgetary authority and decision making. 

This situation undermines an

important element of competition between local and central levels of government and thwarts what

should be a system of institutionalized checks and balances to Executive authority at the local level.

Constraints: 

Although established as a national objective in the 1993 Constitution, formal

decentralization is stalled and incomplete, due in large part to a lack of political will on the part of the

central government to promote relevant legislation.  Among the most important constraints on the

autonomy and effectiveness of decentralized levels of  government are the following;

The regional and departmental levels of government (the same since 1998) are not elected, but

rather, they are appointed by and dependent on the Executive.

 Although there has been an increase in resource transfers to the local level, decision making and

budgets are concentrated in the central government;

The National Mayors Association (AMPE) is not currently viewed as an effective instrument to

promote municipal interests; and

Other donors (e.g., GTZ) are waiting for greater political will and progress on decentralization

before making investments in this area.

H:\INCOMING\July24\MSI Submission\Fn Email.doc

76