Strategic Plan Overview

Peru is characterized by an immense diversity of cultures, languages, and geographical terrain. The country's 1,285,216 square kilometers, approximately the same size as California, Texas and Oklahoma combined, contain one of the most varied and harsh geographies in Latin America, including a coastal arid desert, unique cloud forests, the rugged Andes Mountains, and tropical jungles. Peru has an abundance of natural resources and its biodiversity is one of the richest in the world. The country is home to approximately 26.6 million people of various cultures who speak over forty different languages. The difficult terrain, varied cultures, and variety of languages present unique challenges for Peru's development.

Recent History

Peru's democratic transition in the 1980s was undermined by economic mismanagement, excesses of executive authority, inadequate civilian control over the military, weak political parties and political institutions, a weak congress and widespread terrorism. Upon assuming power in 1990, President Alberto Fujimori's administration was greeted with grave problems: a collapsed economy and hyper-inflation, rampant political violence and terrorism, lack of state authority over much of its territory, and institutionalized trafficking in narcotics.

The first Fujimori administration initiated bold and thorough economic reforms, and committed to restoring peace and order for all Peruvians. Peru quickly regained the respect and admiration of the international financial community. Speedy and successful implementation of these reforms unleashed the forces of the free market and the mid-1990s saw unprecedented economic growth, a reduction in the country\'s poverty rate, and an impressive decline in terrorism throughout Peru.

Unfortunately, Peru's successes in the early to mid-1990s were accomplished at the expense of weakening democratic institutions. Fujimori increasingly concentrated power in the executive branch, co-opting the judicial and legislative branches of government and further weakening local governments. Corruption soared and the scandal-plagued 2000 elections created a groundswell of opposition to the Fujimori administration. Fujimori was forced to resign and new elections were held in 2001. The new government of Alejandro Toledo has stated their commitment to rebuilding democratic institutions and decentralizing government functions. Elections for local and regional governments are planned for November 2002 and the Administration and Congress are working on laws to define the roles and responsibilities for sub-national governments.

Despite Peru's unstable political, social and economic status over the last five years, the accomplishments of the USAID/Peru country program have been significant and widespread. This has resulted in greater access to justice, a reduction in poverty for many, increased demand and utilization of health services, increased support for environment and natural resources (ENR) conservation, and viable and environmentally sound economic alternatives to coca farming.

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