Beyond the conventional wisdom: USAID projects, interorganizational linkages, and institutional reform in Peru.

Abstract

The case study of the linkages between departmental-level and national organizations in Peru shows how linkages can play a significant role in national reform. A general overview of current articles on interorganizational linkages and decentralization pertinent to the Peruvian context of control oriented public sectors is provided. The Peruvian institutional context and the constraints faced by decentralized development agencies called departmental development corporations (CORDES) are identified. CORDES members were provincial mayors, representatives of private sector professional and economic organizations, and heads of ministerial field offices, autonomous agencies, and public enterprises. Microregional offices were established and received public funding. USAID channeled funding through the national organizations to the CORDES in the Integrated Regional Development Project (IRD) between 1979-86, and the Disaster Relief, Rehabilitation, and Reconstruction (DRR) Project between 1983-87. The IRD and the DRR are described in addition to the decentralized organization support network established by the 2 projects. There is an analysis of how these interorganizational linkages contributed to conventional uses of linkages and unconventional or institutional reform. Reforms were facilitated by direct persuasion of central agencies to change their administrative regulations, policies, and operating procedures, and extensive lobbying by the support network to pass budgetary reform favoring CORDES and bureaucratic reorientation. Conclusions were reached on 1) the importance of assistance linkages for hastening implementation, building capacity, and overcoming organizational weaknesses (conventional wisdom); 2) the usefulness of vertical linkages in resolving administrative or technical weaknesses (unconventional wisdom); and 3) the usefulness of reinforcing project related units within key national level agencies which increases access to power while specific objectives maintain assistance orientations. Politically marginal agencies are not considered viable. These projects demonstrated that linkages are useful in supporting institutional reform and respecting country self-determination.