How Much Local Autonomy Is Good for a City? An Analysis of the Peruvian Constitutional Design for Cities and Its Effects in the Case of the Lima Metropolitan Area

The decentralization reform that started in Peru in 2002, which divided the country into regions, provinces and districts, was initially regarded as a just and long-postponed project. However, while the constitution grants all local governments political, economic and administrative autonomy, the rapid population growth many cities have experienced since then calls for the reevaluation of the whole design. This is especially the case for the Lima Metropolitan Area, of which the population has more than doubled since the 1980s. This chapter analyses the effects that being divided into various autonomous districts can have for the governance of a metropolis. We argue that the division causes practical difficulties for reasons rooted in the Peruvian constitutional design, and that this fragmentation hinders the provision of public services, reduces long-term planning and may cause spending inefficiencies. A reexamination of this flawed constitutional design for its cities could be the first step for Peru to finally adapt to its new urban reality as well as to keep up with future changes.