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By Daniel Cotlear

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Additional resources for A New Social Contract for Peru: An Agenda for Improving Education, Health Care, and the Social Safety Net

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The programs, however, also have significant drawbacks. One is the difficulty in managing a graduation of beneficiaries. Because the beneficiaries govern themselves and government support is limited to providing them with food, the beneficiaries become a closed group with an interest in extending the benefits for themselves and not for the rest of the community. Chapter 5 shows how the mothers of Vaso de Leche have continuously extended the age limit of beneficiaries to keep their children in the program.

1, reproduced from Vega (2005), describes the political equilibrium by analyzing in more detail the incentives faced by the various actors in the educational system. As mentioned, the hypothesis of the low level of equilibrium suggests that the actors within the health and the education corporation have no incentive to change their behavior. In education the teachers, principals, regional authorities, unions, and the ministerial administration are all part of the low-level outcome. Inside the corporation, the equilibrium requires lax accountability among members of the corporation—doctors cannot expect much from nurses, hospital directors from doctors or from regional managers, or national managers from regional managers.

To collaborate in governance. To ensure better working conditions and income for the well-being of their families. The local authorities have no clear responsibilities and do not know what to do besides making some type of investment. They do not wish, given that many are teachers, to be responsible for the performance control of teachers and schools. Government political authorities The government fulfills the three tasks assigned to the State by the Constitution in the area of education: to define objectives, ensure that no one is left out of the loop, and guarantee quality by making any necessary decisions.

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