Cross-Sectional Regionalization Strategy and Its Impact on Economic Development in Peru

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Authors: Ángela Cecilia Elías Guardián, Jose Alberto Castillo Montes, Félix Javier Gutiérrez Paúcar, Milagros Ligia Carolina Robles Rojas, Rogelio Sillo Sillo
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References: 15

Abstract

This study analyzed the impact of cross-sectional regionalization on Peru's economic development during the 2013--2023 period, integrating quantitative and qualitative evidence. The results indicate that, despite the decentralization process initiated in 2002, a pattern of structural centralism persists, reflected in the high concentration of Gross Domestic Product in Lima and in territorial gaps in investment and poverty levels. Subnational budget execution reveals technical and institutional constraints that reduce the effectiveness of public expenditure. Likewise, interviews confirm administrative fragmentation, limited fiscal autonomy, and the absence of an articulated cross-cutting strategy. Although regional productive potential exists, regionalization has not been consolidated as an integral policy. It is concluded that its impact has been limited due to governance deficits, weak territorial articulation, and shortcomings in strategic planning.

Fields of Study & Subjects

Local Government Finance and Decentralization Regional Development and Policy Economic Growth and Fiscal Policies

Publication details

Journal / source
Universidad Ciencia y Tecnología
Volume
30
Issue
130
Pages
108–118
Publication date
27 February 2026
Language
EN