Peru’s New Law on International Funding Sparks Fears for Civil Society and Rights

Expanded Government Oversight on Foreign-Funded NGOs Raises Concerns over Civic Freedoms and Access to Justice.

A newly enacted law in Peru granting the Government expanded control over organizations that receive international cooperation funding has raised alarm among human rights advocates, civil society groups, and international observers. The legislation, which modifies existing statutes governing the Peruvian Agency for International Cooperation (Agencia Peruana de Cooperación Internacional, or APCI), has been criticized as a significant step backward for civic space and human rights protections in the country.

The law introduces a series of sweeping regulatory changes that critics argue could unduly restrict the operations of civil society organizations (CSOs), particularly those engaged in human rights defense, social justice, and legal aid. Key among the concerns is a provision requiring all projects funded by international donors to be submitted for prior approval by APCI, the government agency responsible for overseeing foreign cooperation. Organizations fear that this measure could be used to delay or even block initiatives deemed politically inconvenient.

Additionally, the legislation imposes heightened administrative and reporting requirements, which smaller grassroots organizations may struggle to meet. These new obligations include expanded documentation, audits, and compliance reporting, potentially overwhelming local NGOs already operating with limited resources.

Perhaps most troubling to rights advocates is the law’s provision that categorizes the use of international donor funds for legal assistance in cases brought against the Peruvian state as a “serious administrative infraction.” Organizations found to be in breach of this provision could face severe penalties, including substantial fines and possible de-registration. This effectively disincentivizes legal action against state abuses—particularly by and on behalf of marginalized communities—and undermines access to justice, a cornerstone of democratic governance.

The UN High Commissioner for Human Rights, Volker Türk, issued a strong statement in response, urging the Peruvian government to reconsider the legislation and uphold its obligations under international human rights law.

“This law, in its current form, poses a serious threat to the freedoms of association, expression, and the right to a fair trial,” Türk said. “Civil society plays an essential role in holding governments accountable and defending the rights of those most in need. Governments have a responsibility to ensure an enabling environment for their work—not to suppress or restrict it.”

Peru, like many countries in Latin America, has long relied on a vibrant network of NGOs, grassroots movements, and advocacy organizations to complement state efforts in delivering social services, promoting justice, and monitoring state conduct. Many of these organizations operate with financial support from international donors, including UN agencies, foreign governments, and global foundations.

Under the new framework, not only would these groups be subject to stricter scrutiny, but their ability to respond rapidly to emerging crises—such as natural disasters, political repression, or public health emergencies—could be hindered by red tape and bureaucratic delays.

Domestic civil society leaders have echoed these concerns, warning that the law could severely curtail their independence and ability to act in the public interest. “We see this as a veiled attempt to silence dissent and make it harder for citizens to seek justice when their rights are violated by the state,” said María Elena Díaz, director of a Lima-based legal advocacy group. “It will be the poor, the indigenous, and the vulnerable who suffer the most.”

International human rights organizations are now calling on Peru’s Constitutional Court to review the law for potential violations of constitutional and international legal standards. Meanwhile, several donor countries and embassies have expressed concern privately and are expected to raise the issue in upcoming bilateral dialogues.

The controversy comes amid a broader global trend of shrinking civic space, where governments around the world are increasingly passing laws to regulate, monitor, or restrict foreign funding to NGOs. Such measures are often justified on grounds of national security or transparency but have been widely criticized as tools of authoritarian consolidation.

As the situation unfolds, rights advocates urge Peru’s government to open a dialogue with civil society actors and international partners to amend the law in line with democratic principles and human rights norms.

“Now is the time for Peru to reaffirm its commitment to democracy and the rule of law,” Türk emphasized. “Civil society must be seen not as a threat, but as a partner in building a just and inclusive society.”