Peru

Canada's Commitment
Results
Country Profile

Canada's Commitment

Canada's development assistance to Peru began in 1968. Current programming channelled through the Canadian International Development Agency (CIDA) focuses on reducing poverty by strengthening Peruvian institutions.

Peru's National Development Plan recognizes the importance of good governance and prioritizes strengthening democracy and the rule of law, promoting equity and social justice, increasing competitiveness in the private sector, and building an efficient and transparent public sector.

In line with this, CIDA's development assistance program has two objectives:

• improving the quality, equity, and efficiency of educational services for poor Peruvian girls and boys; and
• creating an enabling environment for good governance by supporting democratization, public sector reform, and inclusive management in strategic sectors.

Peru is considered an important Canadian partner because of growing Canadian interests in the country and its important moderating role in the hemisphere.

---

Results

CIDA-funded projects have improved the primary education system in northern Peru, increased access to water and sanitation services, strengthened governance and the rule of law in the extractive industries and the public sector, and monitored the protection of human rights. In particular, CIDA-funded projects have:

• increased primary school completion rates in parts of northern Peru from 61 percent in 2003 to 80 percent in 2007 and dramatically improved students' reading and writing skills-a project that is currently being expanded to 25 more schools and shared as a model with policy makers throughout Peru;
• helped poor urban communities build safe water and sanitation services, improving health and quality of life for more than 766,400 people;
• assisted the Government of Peru in implementing a new natural gas and mining regulatory framework and in building capacity to protect the environment and manage social conflicts; and
• through the creation of the Office of the Ombudsperson, strengthened the ability of the state to promote and protect human rights and deliver quality public services such as education and health: in 2006, the office registered more than 85,000 cases, of which 90 percent were resolved.

Country Profile

Today, Peru is politically and economically stable, with annual economic growth of about 7 percent. Much of this growth is due to increased foreign investment in Peru and increased exports of minerals.

However, Peru is still very much a part of the Andean poverty belt. The gaps between rich and poor are particularly dramatic. Of Peru's more than 27 million people, almost half-14 million-live in poverty. And 5 million live in extreme poverty: on less than $1 a day. The majority of these are women, children, the elderly, ethnic minorities, and people in rural areas. Inequality, high unemployment, environmental degradation, natural disasters, and a shortage of water and arable land are continuing challenges to the country's economic development.

With increased investment, a stable political and economic climate, commitments from the international community and strengthened national governance, Peru has immense potential to improve the social welfare of its people and reduce poverty.