State Privatization in Peru: Illegitimate Interests Undermining Public Institutions
The concept of 'state privatization' describes the capture of public institutions by illegitimate interests, a phenomenon that has likely plagued Peru since the Republic's inception. This occurs when powerful groups secure ministries and key positions through political favors, leading to contracts and bids that benefit specific commercial interests, or even through the recognition of certain unions. Such practices erode state legitimacy, transforming public resources into political spoils with detrimental effects on underserved populations.
Former President Pedro Castillo founded the Fenatep union in 2017 and formally recognized it in 2021. However, its registration was nullified in 2023 due to private ties with Movadef, and the union was judicially dissolved in 2024. Despite its cancellation, Fenatep continues to seek official recognition, particularly within the education sector, which is described as rife with illegitimate interests. Unions are alleged to function as political platforms, dictating a class-struggle narrative and anti-business ideology in classrooms, which polarizes society and hinders children's future preparedness. The poor quality of regular basic education negatively impacts national development, evidenced by precarious infrastructure and student-focused policies. Despite a 40% budget increase for education between 2019 and 2026, funds were primarily allocated to salaries, not infrastructure improvements. Currently, 70.6% of public schools lack basic services, and 52% require demolition due to collapse risk. Over 60,000 public schools and six out of ten families lack digital access. Alarmingly, only 14% of public school students in their second year of secondary education can comprehend written text, with significant regional disparities, such as in Loreto where only 5% of students can read proficiently and a mere 2% achieve satisfactory math scores.
The article argues that learning outcomes must become a public policy priority, and the education sector needs to be freed from the illegitimate interests of unions and teachers prioritizing appointments and salary increases over student learning. Recent government changes in viceministries and offices, coupled with the new Minister of Labor meeting with Fenatep leaders shortly after appointment, raise concerns about Peru continuing to be exploited. The newspaper El Comercio publishes this opinion piece to foster idea exchange, respecting the author's views without necessarily endorsing them.
The 'state privatization' concept, as applied to Peru, highlights systemic governance challenges where public institutions are allegedly influenced by private or factional interests rather than the general welfare. This dynamic can lead to resource misallocation, such as increased education budgets primarily benefiting payrolls over infrastructure or learning outcomes. The focus on union recognition and teacher appointments over educational quality suggests a potential conflict between labor interests and public service delivery. Examining the incentive structures within the education sector, particularly the disconnect between increased funding, teacher compensation, and student achievement, is crucial. Future policy interventions might consider performance-based funding models and independent oversight mechanisms to ensure public resources effectively serve educational goals and prepare students for a rapidly evolving global economy, rather than perpetuating cycles of underperformance and regional disparity.
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