IMPROVING PUBLIC SECTOR

ACCOUNTABILITY AND RESULTS

MONITORING, THE PERUVIAN
EXPERIENCE

Miami, May 2011

INTRODUCTION

A CONSTITUTIONAL STATE NEEDS EFFICIENT, EFFECTIVE

CONTROLS ON THE MANAGEMENT OF PUBLIC FUNDS .

Impact on the
JUDICIAL
BRANCH
Citizens
PUBLIC PUBLIC
RESOURCES AGENCIES

JUDICIAL
BRANCH PUBLIC BUDGET PUBLIC POLICIES

JUDICIAL
BRANCH Treasury Inspector's Office of the Republic
Supervises, watches and verifies public management
actions and results.
 PERUVIAN MACROECONOMIC
CONTEXT AND PUBLIC
EXPENDITURES IN RECENT YEARS
MACROECONOMIC CONTEXT
GDP: 20 Years of Gross Domestic Product Growth
275,720
Millions of US$

5 years of accelerated growth:

2004-2008

70,493

Source : CENTRAL RESERVE BANK OF PERU / INTERNATIONAL MONETARY

FUND
MACROECONOMIC CONTEXT
GDP: 9 years of rates of change of GDP consistently
above the global average

Peru (1)

World (2)

Source : (1)CRBP
(2) IMF
MACROECONOMIC CONTEXT
GDP Per Capita: Sustained Growth Over
the Last Decade

Projection for the next 3

years
US$

Source : MINISTRY OF ECONOMY AND

FINANCE
MACROECONOMIC CONTEXT
Balance of Trade: Growth in Exports and Imports, with
Trade Surplus

Trade Surplus since 2002

Millions of US$

Source : CENTRAL RESERVE BANK OF PERU

MACROECONOMIC CONTEXT
INR: 20 Years of Sustained Growth in International Net
Reserves (83.2 times increase over 1990)

44,105
Millions of US$

530

Source : CENTRAL RESERVE BANK OF PERU

MACROECONOMIC CONTEXT
Domestic Demand: 20 Years of Sustained Growth in
Domestic Demand
(2.6 times increase over 1990)
217,833
Millions of US$

82,264

Source : CENTRAL RESERVE BANK OF PERU

MACROECONOMIC CONTEXT
Major Reduction in the Ratio of Public
Debt / GDP
(%) Public Debt / GDP

Source : CENTRAL RESERVE BANK OF PERU

MACROECONOMIC CONTEXT

Reduction in Inflation Rate Volatility

Before Application of the MEI With Application of the MEI

GOVERNMENT SPENDING
11 Years of Sustained Growth in Public
Expenditures
31,160
Millions of US$

7,381

Source: MINISTRY OF ECONOMY AND FINANCE

GOVERNMENT SPENDING
Increase in Capital Expenses as a Percentage of
the Total Non-Interest Expenses of the Central
Government

Current Expenditures

Capital Expenditures

Source : CENTRAL RESERVE BANK OF PERU

INVESTMENT OUTLOOK
FAVORABLE CLIMATE FOR
INVESTMENT
World Bank Investment Grade Rating
Doing Business 2011 Country S&P Fitch Moody's
Ranking Country Chile A. A. Aa3
1 Mexico Mexico BBB BBB Baa1
2 Peru Brazil BBB- BBB Baa3
3 Colombia Peru BBB- BBB- Baa3
4 Chile Colombia BBB- BB+ Ba1
5 Puerto Rico Venezuela BB- B. B2

Peru occupies the second place Argentina B. B. B3

in the region in terms of
Bolivia B. B. B1
national attractiveness for
investments. Ecuador B. B. Caa3

Source: Standard & Poor’s, Fitch Ratings and Moody’s

Updated April, 2011
FAVORABLE CLIMATE FOR
INVESTMENT
World Economic Forum Getulio Vargas
Benchmarking National World Benchmarking FoundationEconomic
Benchmarking Climate
Attractiveness for Private Macroprudential Indicators of Index (ECI) in Latin America
Investment in Infrastructure. Financial System Soundness.
Ranking Country Points Ranking Country Points Ranking Country ECI
1 Peru 275,720 1 Peru 275,720 1 Peru 7,381
2 Colombia 275,720 6 China 275,720 1 Uruguay 7,381
3 Chile 275,720 8 Switzerland 275,720 2 Chile 7,381
4 Uruguay 275,720 9 France 275,720 3 Brazil 7,381
5 El salvador 275,720 10 Holland 275,720 4 Paraguay 275,720
6 Bolivia 275,720 11 Mexico 275,720 5 Colombia 275,720
7 Brazil 275,720 17 Argentina 275,720 7 Argentina 275,720
8 Dom. Republic 275,720 35 Brazil 275,720 8 Mexico 275,720
9 México 275,720 39 Chile 275,720 9 Bolivia 275,720
10 Guatemala 275,720 41 Colombia 275,720 10 Ecuador 275,720

Source: World Economic Forum, Benchmarking Source: World Economic Forum, The Source: Getulio Vargas Foundation in Brazil
National Attractiveness for Private Investment Financial Development Report 2009 and the IFO Institute Germany. 2011
in Infrastructure. 2007
Conclusio
n
 Within a context of economic growth and increased
government spending, while promoting greater
investment in the country, a decisive factor are the
transparency and accountability mechanisms that
contribute to the adequate oversight and monitoring of
government management results, in order to
translate ithe mprovements made in
macroeconomic variables into improved social
conditions for its population.
 STRENGTHENING AND
MODERNIZATION OF THE
TREASURY INSPECTOR'S OFFICE
OF THE REPUBLIC
DEFINING A NEW VISION, MISSION AND VALUES

Vision
•"To be recognized as an institution of
excellence, that creates value and contributes
to improving the quality of life of our citizens."

Mission
•"To promote the development of an effective
and modern system of public resource
management that benefits all Peruvians."

Values
•Honesty, Justice and Sound Judgement

19
DEFINING INSTITUTIONAL PROCESSES
STRATEGIC MACRO PROCESSES

Satisfaction and Trust of the Citizens and

Strategic Planning Rules and Research and
Environmental Quality
and Management Regulations Development
Management Management
Monitoring Needs and Wants of the

Control Management Management

Citizens and the Government

MACRO PROCESSES OF THE MISSION

Compliance Auditing

the Government
A C T I O N

Financial Auditing
Planning Planning
and Action Management Auditing Sanctions
Management Citizen Participation Management
and Transparency

Academic Management of
H.R. Management
Management Security
Financial Logistics
ICT Management
Management Management
Documentary Information
Legal Management,
Management and Intelligence
Internal Auditing Violations and
Administrative Management
Sanctions
Support
20
SUPPORT MACRO PROCESSES
STRATEGY MAP 2011-2013
Vision Be recognized as an institution of excellence, that
Object creates value and contributes to improving the
ives
quality of life of our citizens.

A. Achieve a high level of trust and support from the

citizens.
Missio
n Promote the development of an effective and modern system of public resource
Object
ives management that benefits all Peruvians.
B. Define, design and implement the New Plan for Monitoring and Fighting Against
Corruption.

C. Define the Clients, Products and Services.

D. Reorganize, decentralize and integrate the Treasury Inspector's Office of the

Republic.

Enabli F. Design and G. Obtain the

ng H. Secure adequate
Steps E. Establish a new implement Policies, Technology and
Infrastructure and an
Model for Human Talent Processes and Information Systems to
efficient scheme for
Management. Guidelines for the New support the new
administrative support.
21
Monitoring Plan. processes.
MODERNIZATION STRATEGY
GOVERNMENT Modernization of the National System of Monitoring

CITIZENS
PERUVIAN

New Plan Results- Deconce Knowled

Organiza Strategic
for Based ntration ge New
tional
Monitorin Manage Decentra Manage Culture
Structure Alliances
g ment lization ment

Human Resources Project Managment Managment of Technologies

Management
Working Climate Process Re-Engineering New Image

ENSURING VALUE GENERATION FOR SOCIETY 22

22
THE NEW MONITORING PLAN

Integral Control

DEVELOPMENT
RESOURCES

WELL-BEING
Public
PUBLIC

AND
Intelligen
Policy Administ
Product / Performa ce and
Preventiv Specializ Complian rative
Client nce Informati
e Control ed Audits ce Sanction
Focus Audits on
Evaluatio s
Analysis
n

CONTRIBUTION WITH GOVERNMENT REFORM 23

CRITICAL FACTORS IN THE FIGHT AGAINST CORRUPTION
Intern
al
Contro
l Process
Dissemin and

GOVERNMENT
MANAGEMENT
GOVERNMENT

ating Project

EFFICIENT
Values Manage

MODERN,
ment
Public
Agencies
Results-
Account
Based
ability of
Manage
Officials
ment

Transpare
ncy
25
SANTIONING POWER

In the 2001-2010 period, of

the total number of
recommendations on
administrative operations
responsibility, sanctions
were enforced in only 25.2%
of the cases.
In 2011, the Congress of the
Republic granted
sancitioning power to the
Treasury Inspector's Office
(CGR).
 Treasury Inspector's
Office of the Republic of
Peru

Miami, May 2011

THE NEW MANAGEMENT MODEL
FOR THE
TREASURY INSPECTOR'S OFFICE
OF THE REPUBLIC
29
MASTER PLAN FOR THE TREASURY INSPECTOR'S OFFICE OF THE
REPUBLIC 2011-2013
NEW MANAGEMENT MODEL (TO BE)