People, Power, and Pipelines
Summary
This report by the World Resources Institute analyzes the management of extractive industry revenues by subnational governments (SNGs) in Peru, specifically focusing on the Camisea natural gas project. It argues that international financial institutions (IFIs) and the Peruvian government failed to build sufficient SNG capacity before large revenue transfers began, leading to weak strategic planning and limited public accountability. The report recommends that IFIs withhold support for extractive projects until governance conditions are sufficient and provide targeted support for SNG capacity building in strategic planning and transparency.
Key insights
- Subnational governments (SNGs) in Peru have increased spending, primarily on infrastructure, but they are failing to manage surpluses to mitigate oil price volatility or the eventual decline in gas revenues.
- Strategic planning capacity among SNGs is weak, as evidenced by a lack of municipal planning documents, meaning investment decisions are not guided by a coherent long-term strategy.
- While SNGs have developed some information access mechanisms, they do not meet Peruvian legal requirements or the needs for citizen accountability; furthermore, urban residents in benefiting municipalities have limited knowledge of the gas Canon.
- The report concludes that the Peruvian national government and IFIs undermined governance by failing to build SNG capacity before the start of massive revenue transfers in 2006.
Cite the original document
- APA
- World Resources Institute (n.d.). People, Power, and Pipelines. https://www.wri.org/research/people-power-and-pipelines
- Chicago
- World Resources Institute. People, Power, and Pipelines. n.d. https://www.wri.org/research/people-power-and-pipelines.
- Wikipedia
- {{cite report |author=World Resources Institute |title=People, Power, and Pipelines |url=https://www.wri.org/research/people-power-and-pipelines |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{worldresourcesinstitutendpeople, author = {{World Resources Institute}}, title = {{People, Power, and Pipelines}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/people-power-and-pipelines}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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