Extractive industry revenues and the subnational resource curse: The case of the Peruvian Andes

This paper explores how the allocation of revenues from extractive industries has contributed to a subnational resource curse in Peru, drawing on findings from a qualitative-based comparative analysis of conditions in two of the country's provinces, Espinar and Huari. The findings suggest that large quantities of revenue are being transferred to municipalities, despite local institutions' limited capacity to manage public investment. This, it is argued here, is fuelling a subnational resource curse in provinces such as Espinar and Huari.