We are delighted that our highly successful programme to strengthen public finance management at the regional and local levels in Peru is entering its third four-year phase.

Funded by the Swiss State Secretariat for Economic Affairs (SECO) since 2013, the Programa GFP Subnacional aims to improve how public finances are managed and spent at the subnational level and to optimise the delivery of public services to Peruvian citizens.

Hands-on support, tangible impact

Our office in Lima coordinates an ambitious programme of capacity building and technical assistance, including innovative training initiatives and mentoring by experts based in local and regional government offices.

With an additional USD 8 million in funding from 2024–2028, the programme will build on its previous achievements in strengthening capacity in relation to procurement, budgeting and risk management processes. These include:

• Increased efficiency in the programming and execution of public investments, particularly in education and healthcare infrastructure.
• Strengthened internal controls and financial management systems at regional and local levels.
• Successful implementation of property tax management reforms, significantly boosting local revenue collection.
• Notable progress in asset recovery through Peru’s non-conviction based forfeiture law, Extinción de dominio. Drawing on the Basel Institute’s asset recovery expertise, this effort has led to the recovery of millions of dollars in misappropriated public funds and is helping to reduce impunity for corruption.

The team has also helped to introduce innovative tools to increase efficiency and transparency in public administration – like WhatsApp chatbots for tax collection.

These short testimonials highlight some of the real impacts our team’s work has had for both the governments and the citizens they serve.

New biodiversity focus

The third phase of the programme with continue strengthening these areas, incorporating new strategies and adapting to changing circumstances.

It will also add a special focus on the monitoring and surveillance of regional conservation areas, including through the use of innovative technologies. This support will help subnational governments to preserve biodiversity and implement sustainable development strategies, aligning with Peru’s national environmental policies. This complements the work of the Basel Institute’s Green Corruption programme in Peru and neighbouring countries that also enjoy rich biodiversity and are home to precious rainforest.

In addition, the programme specifically seeks to facilitate the implementation of recommendations for Peru to comply with OECD standards on public finance management at the subnational level.

Launch event

At the launch event at the Swiss Ambassador’s residence in Lima, high-level diplomats and subnational government leaders gathered to celebrate the programme’s successes so far.

Paul Garnier, Swiss Ambassador to Peru, highlighted the significance of the ongoing collaboration, saying:

“It is very important to maintain a stable economic framework and solid and transparent institutions that generate confidence and allow for the further deepening of economic relations between Peru and Switzerland. It is also important to improve the provision of basic services such as health, education and sanitation. We hope that the new phase of the Subnational GFP Programme will contribute to sustainable growth and also to poverty reduction.”

Massimo Bloch, Director of the Swiss Economic Cooperation - SECO commented:

“This third phase of the Programa GFP Subnacional has been designed taking into account the good practices learned, as well as the particular characteristics and needs of each regional or local government. On behalf of SECO…we want to accompany the coordination, effectiveness and implementation of policies that foster sustainable growth and improve public services for citizens. Our commitment to Peru is long-term.”

Carlos Vargas Mas, Programme Director, remarked:

“Our work has proven that technical assistance, when combined with a commitment to transparency and good governance, can create lasting, meaningful improvements for millions of Peruvians. This new phase will further solidify these gains.”

Among the distinguished guests at the event were the Director of the Swiss Economic Cooperation - SECO in Peru, Massimo Bloch, the Basel Institute on Governance’s Head of Latin America, Oscar Solórzano, a thematic coordinator of the Programme and former President of Peru’s Fiscal Council, Carlos Oliva, Deputy Minister of Economy and Finance Betty Sotelo, and the former Minister of Economy and Finance, Miguel Castilla.

Expanded beneficiaries, alignment with national policies

The regional government of Loreto and municipality of Maynas are set to join the programme’s 11 existing beneficiaries: the municipalities of Abancay, Cusco, Piura, San Martín (Tarapoto) and Trujillo, as well as the regional governments of Apurímac, Cusco, La Libertad, Lambayeque, Piura and San Martín.

The programme will also continue close coordination with relevant state institutions, including the Public Integrity Secretariat, Ministry of Economy and other relevant Ministries such as health and education, government environmental agencies, prosecutors’ offices and the judiciary.

Learn more

• See SECO’s information sheet on Switzerland’s commitment to helping Peru improve public finance management (in Spanish).
• Watch a short video about the programme’s achievements in the second phase (in Spanish).
• Watch testimonials from public officials telling stories of how the programme has benefited them and the citizens they serve.
• View the Programa GFP Subnacional website and follow the programme on LinkedIn and Facebook.