Management of transfers to local government

Tragodara C.C. · Mining and the Peruvian State: Social and Environmental Sustainability (2026) · DOI: 10.4324/9781003746867-17

Resumen

Peru's canon system was devised as a way of channeling the tax yield from mining to the benefit of regions and localities where mines are located. Its introduction coincided with measures of administrative decentralization, with greater spending powers to sub-national government. However, the record of the canon system and that of royalty payments in boosting development in mining-dependent areas has been poor. Much has been wasted through poor planning and execution, much through corruption in local government. With the canon system in need of overhaul, the chapter reviews what went wrong and provides suggestions as to how it could be improved. The system has the potential to generate local support for mining if it is seen to bring benefits to local people.

Instituciones: Universidad del Pacífico