Canadian International Development Agency
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Peru
Overview
Peru is a significant partner in the promotion of democracy, stability, security, and human rights throughout Latin America. Its economy has been among the best performing in the region in recent years, mainly due to strong mineral and hydrocarbons prices. Growth in Peru's gross domestic product slowed from 9.4 percent in 2008 to 2.2 percent in 2009. However, sound macroeconomic fundamentals, adequate fiscal reserves, and a healthy anti-crisis plan have positioned Peru relatively well to weather the global economic crisis.
Despite aggregate economic growth, income inequality persists. Some 2.2 million individuals (8 percent of a population of 28 million) live on less than US$1.25/day. Women, children, and indigenous people living in rural areas and the highlands are the most vulnerable.
Peru has embarked on an ambitious decentralization reform process and is addressing regional disparities by bringing decision-making and delivery of public services closer to rural populations. This will address social conflict and manage and redistribute revenues (in large part derived from the extractive industries) so they directly target the poor and marginalized through increased health and education services.
Although Peru has made significant strides in education in recent years, the quality of education remains among the lowest in Latin America and the Caribbean, as shown by belowaverage scores for math and reading (UNESCO 2008). Peru's government has made it a priority to improve educational standards, with special attention to reducing inequality by targeting rural areas and disadvantaged populations such as indigenous groups, women, and girls.
Thematic Focus
In 2009, as part of Canada's new aid effectiveness agenda, Peru was selected by CIDA as one of 20 countries of focus. The overall goal of CIDA's programming in Peru is to reduce inequality in educational and economic opportunities for excluded populations in Peru.
Peru provides a framework for donor alignment through its National Policy on International Technical Cooperation (NPITC) for 2006-2011 (Spanish only), which ties together the national, sectoral, and regional policies that make up the country's development plan. Following an assessment of Peru's key development objectives of human development, economic growth and sustainability, and governance, Canada is responding to Peru's priority needs as expressed in its NPITC.
Children and youth
CIDA's focus is to strengthen the quality and efficiency of basic education, including intercultural education, for Peruvian girls and boys in rural areas and among indigenous populations by enhancing the managerial and technical capacity in education at national, regional, and local levels.
- Some 73,000 girls and boys will receive quality intercultural education
- Some 4,300 rural youth will be enrolled, educated, and retained in the school system and receive life skills training
- The ability of the Government of Peru, including 4 regional governments and school councils, to plan and deliver efficient and inclusive quality education to girls and boys will be enhanced
Economic growth
CIDA seeks to increase the participation of vulnerable populations in economic development through market-driven skills for employment programs and effective corporate social responsibility initiatives for the sustainable well-being of communities. CIDA will also support the Government of Peru's decentralization reform by strengthening the capacity of regional governments to plan and deliver equitable and inclusive public services to their citizens and to sustainably develop the extractive and natural resources sector (especially mining).
- Technical and vocational training and skills, linked to jobs in the local market, will be provided to Peruvian youth
- Community-level sustainable social and economic development projects will be implemented through partnerships with extractive companies, regional and local governments, and non-governmental organizations
- The ability of the Government of Peru, including 4 regional governments, to sustainably develop extractive/natural resources and manage related social conflicts will be enhanced
- The capacity of local populations to monitor extractive and natural resources sector activities will be strengthened
- The participation of small- and medium-sized enterprises in the formal economy will be increased through training, access to credit, and the protection of property rights
Progress on Aid Effectiveness
Peru is a signatory to the Paris Declaration on Aid Effectiveness.
Ongoing efforts are required by donors to continue progress on aid effectiveness in partnership with Peru's International Cooperation Agency (APCI) (Spanish only). CIDA is an active member of a number of donor committees, including education; governance; decentralization and modernization of the state; and equality between women and men.
Canada played a key role in creating a joint multidonor initiative in support of Peru's Ombudsman (Defensoría del Pueblo) (Spanish only), the key Peruvian organization which addresses human rights issues.
PDF Format
National Policy on International Technical Cooperation (NPITC) for 2006-2011 (560 KB, 25 pages) (Spanish only)
Paris Declaration on Aid Effectiveness (317 KB, 23 pages)
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