Abstract
The present research work analyzes the contribution of the restriction of technical capacities to the level of human development registered in the local governments of Ayacucho during the period 2010-2012. This paper is testing to evaluate if during 2010-2012 period, the reduction of human development levels of the local governments of the department of Ayacucho is due to the restriction of technical capacities that limit the execution of public investment at the local level. In particular, the results obtained support the research hypothesis that during the reference period, the expenditure of the local governments of the department of Ayacucho is mainly limited by two factors: first, the restriction of technical capacities in municipal policy and management; and second, the strategic planning. These two factors in turn, reduce the execution of public investment by 9.32% and 6.12%, respectively. Likewise, this capacity restriction contributes to a reduction in the execution of public investment by 8.35%. Additionally, it is found that, although the impact of public investment on human development at the local level is positive, in terms of magnitude, it is relatively minor, as shown in the empirical work carried out by Correa & Morocho (2015). Finally, it is found that during the period 2010-2012, the technical capacity constraints in municipal policy and management, plus lack of appropriate strategic planning, reduced the Human Development Index (HDI) of the local governments of Ayacucho by 0.10%, 0.06% and 0.08%, respectively.
Highlights
Aragón and Casas (2009) point out that technical capacities, such as management and planning skills, are part of the technology by which local governments provide public goods and services to satisfy the local demands
In the case of the Department of Ayacucho, between 2010 and 2012, public investment registered an 82% growth, going from 905 millions of soles (Note 1) to 1,648 millions of soles. This apparently would not have been reflected in the conditions of human development, since the Human Development Index (HDI) between 2010 and 2012, decreased by 2.36%, going from 0.3426 to 0.3336, while the majority of the other departments of the country registered a positive trend in the HDI
Concluding Remarks The present investigation analyzes the relevance of the restrictions of technical capacities on human development of the local governments of the department of Ayacucho during the period 2010-2012, taking as a basis, the transmission channel capacities plus local spending and human development
Summary
Aragón and Casas (2009) point out that technical capacities, such as management and planning skills, are part of the technology by which local governments provide public goods and services to satisfy the local demands These capacities are relatively fixed in the short term because local administration takes time to learn and gain experience, or recruit qualified personnel due to limitations of the financial resources, and because of their endowment of experience and human capital. A similar situation is true for the strategic planning measurement and examining if there are any training requirements necessary
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