Mining canon, public investment and poverty in the la Libertad region

Abstract

This research work evaluates the percápita mining royalties impact on the poverty level in the twelve provinces of La Libertad region during the 2007- 2016 period; this canon miner comes essentially from the activities of golden mining enterprises and from firms related with the extraction and processing of non metallic mining products (mainly limestone). For it investigates the share of the canon miner assigned to each of the twelve province in the public investment executed by the local governments to determine the effciency in the execution of such investments. During the execution of this research we compare the amount of percápita canon miner assigned to each province with their effciency in the execution of investment projects; on the other hand, it was discovered that exists a marked difference in the percápita canon miner assignment among the La Libertad provinces; likewise it was discovered that the provinces with minor percápita canon miner assignment, located on the coast of the region, were those which had mostly reduced their level of poverty; instead, the provinces with major percápita canon miner assignment, located in the sierra and jungle of the region, are those which have reduced in little amounts their IDH (Human Development Index) or have increased them minimally.