Peru

USAID’s economic growth program aims to spread the benefits of trade-led growth–including job creation and poverty reduction–by helping to integrate the impoverished Andean highlands and Amazonian jungle more fully into the global marketplace.

Overview

Despite enjoying strong economic growth over the last decade and being blessed with vast natural and cultural resources, Peru continues to face challenges in reducing poverty and protecting its delicate ecosystem. Great inequities remain between the 36.2% of the population that lives on less than two U.S. dollars a day (12.6% live on less than ond dollar per day) and Peruvians who are fully integrated into global markets. Limited government capacity in the highlands and jungles allow illegal coca cultivation, drug trafficking, illegal logging, social conflicts, and other criminal activity to flourish. Perceptions that the government is not responsive to the demand of its citizens and challenges faced by the government in delivering services effectively, result in low levels of public confidence. Last year, tensions stemming from natural resource management led to deadly conflicts in the Amazon region. To address these challenges, USAID works with the Government of Peru (GOP) to implement programs in economic growth, alternative development, health, education, democracy and governance, and environment. USAID emphasizes trade-led economic growth and increased market access for small businesses in efforts to reduce proverty. USAID projects offer alternatives to illicit coca and strengthen the delivery of public services. All activities promote constructive dialogue among local communities, government officials, citizen groups, and the private sector. USAID pursues public-private partnerships to leverage additional resources and expand USAID model activities that have a history of producing successful results.

Programs

Governing Justly & Democratically

USAID’s decentralization program focuses nationally on policy reform and locally on helping create stronger governments that are better equipped to deter drug trafficking, illegal logging, terrorism, and other criminal practices, while responding effectively to citizen needs. USAID plays a key role in encouraging constructive dialogue to mitigate conflicts, especially those in the extractive industry sector. USAID’s anti-corruption activities promote government transparency, accountability, and greater citizen participation in planning the distribution of GOP resources

Economic Growth

USAID activities are laying the foundation for sustainable, trade-led economic growth and increased market access for micro, small, and medium enterprises. USAID works with the GOP in developing customs and business registration reforms, regional export plans, and infrastructure concessions. Private sector collaboration includes the creation of business service centers in targeted regions. USAID also supports the implementation of the U.S.-Peru Trade Promotion Agreement (PTPA) through a variety of trade capacity building activities.

EnvironmentUSAID works with the GOP to develop environmental policies and to strengthen environmental institutions to promote sustainable forest management, protect biodiversity, and ensure compliance with the environmental requirements of the PTPA. USAID also works with communities in the Andean highlands to adapt to climate changes that affect water supplies.

Investing In People

Health

USAID’s health program improves the health of Peruvians and strengthens the performance of key institutions and organizations in the sector. USAID works with the Ministry of Health to decentralize health services at local levels, to improve distribution of medicines, and to strengthen the Ministry’s capacity for Community-level programs that directly target poor and indigenous communities in order to encourage healthier behaviors and practices.

Education

Working at the national, regional, and local levels, USAID’s education programs enhance the quality of education in rural public schools.  USAID provides technical assistance to improve the quality of teaching and to encourage policy dialogue and accountability.  School-level reforms include teacher training and coaching in the active schools methodology, so that teachers, students, parents, local officials, and community members are engaged in school management.

Alternative Development

A key component of the USG’s comprehensive counternarcotics strategy in Peru is an integrated Alternative Development program, which includes economic development, agriculture, education, health, governance, and environment activities in communities that have eradicated coca and are committed to licit economic activities and a life free of coca.  USAID offers a package of assistance tailored to each community’s needs, including assistance in production and marketing of alternative crops such as cacao, coffee, and palm oil.  USAID also promotes dialogue and applied research to advance reforms in national coca policy.