 |
|
|
|
|
|
|
|
 |
USAID Information:
External Links:
|
|
|
|
|
Peru
The Development Challenge: Throughout the 1990s, Peru made significant progress in combating
terrorism, reducing the production of coca, stabilizing its economy, and increasing access to social
services. However, the government of President Fujimori collapsed in November 2000 under the weight
of a decade of increasingly authoritarian rule, discredited elections, revelations of rampant corruption, and
an economic downturn. A transitional government took measures to stabilize the political and social
environment in Peru, culminating with elections of a new president, congress, and regional/local
authorities. Since 2001, the Government of Peru has pursued an ambitious program to re-establish
democracy and promote a market-based economy that will provide benefits to all of Peru’s citizens.
 |
|
Please note: All documents are in pdf format |
The limited state presence in large portions of the country’s interior challenges the Government's ability to
ensure broad-based development for all Peruvians. With a current per capita gross domestic product
(GDP) of about $2,100, Peru has merely maintained its 1967 income level, in real terms. Income remains
unevenly distributed, with approximately 54% of the population living below the poverty line, almost half of
whom live in extreme poverty. The country’s total debt servicing requirement is expected to represent
33% of exports in 2004; the Peruvian government finds it difficult to limit its fiscal deficit while still
addressing the country’s social needs. Unemployment and underemployment rates remain very high
(approximately 9% and 50%, respectively). Social services, especially in isolated, conflict-prone regions
in Peru’s highlands and jungles, are inadequate (e.g., in USAID's geographic focus areas 36% of children
under five are malnourished, 27% of women are illiterate, 50% of the population does not have access to
electricity, and 69% does not have access to sanitation services). Peru’s tropical forests are the fourth
largest in the world, but they are increasingly threatened by shifting migration patterns, unsustainable
exploitation of the forest, and the destructive impact of illicit coca production/processing. The lack of state
presence allows drug trafficking, illegal logging, terrorism and other criminal practices to flourish, creating
a corrupt, violent and conflictive environment that discourages investment, limits economic opportunities
for the population, and prevents sustainable economic growth and development.
While Peru’s economy out-performed the rest of Latin America (Peru experienced 5.2% GDP growth in
2002 and 4% projected in 2003), the Government of President Alejandro Toledo remains politically weak
and social discontent prevails. To move forward, Peru must take full advantage of the recent extension
and expansion of tariff-free entry of Peruvian products to the U.S. market under the Andean Trade
Promotion and Drug Eradication Act (APTDEA), initiate and conclude negotiations of a free trade
agreement with the United States, and prepare itself to participate in the Free Trade Area of the Americas
(FTAA) to stimulate economic growth and reduce poverty levels. Likewise, Peru must successfully
complete its decentralization process to facilitate the dispersion of economic activity and more
representative and effective governance throughout the country; reform the justice system to ensure
predictable and equitable application of criminal and commercial law; modify the tax system to introduce
transparent and efficient mechanisms to raise revenues for investment in critical infrastructure and
services; and comprehensively restructure government institutions to reduce corruption, control
government expenses, and provide appropriate and effective services.
In the Toledo Administration, the U.S. Government has a partner that is committed to advancing the
mutual national interests of building the infrastructure of democracy, promoting sustainable development,
and defeating narco-terrorism. U.S. assistance can play a decisive role in addressing the obstacles of
corruption and conflict where there is a lack of state presence and a lack of economic competitiveness.
The USAID Program: USAID works as an integral part of the U.S. Country Team in Peru and
collaborates with Peruvian partners, other donors, non-governmental organizations, and the private sector
to help Peru achieve a secure, democratic, and prosperous future for its citizens. USAID will facilitate both
Peru’s international and national integration, thereby contributing to the mutual U.S. and Peruvian goals of
good governance, security, and prosperity. USAID's overarching goal in Peru is to create jobs and, within
its manageable interests, improve the climate for trade and investment, both domestic and international.
Expanded commerce will further integrate Peru into the world economy and enhance cross-border
relations, helping to improve living standards and reduce the potential for conflict. Within Peru, effective
regional and local governments, along with improved economic infrastructure and social service delivery
will increase national integration, reducing the potential for conflict associated with the marginalization of
certain geographic areas and social groups.
The Data Sheets demonstrate how USAID will use FY 2004 and FY 2005 funding to provide: 1) nationallevel
assistance related to policy reform and institutional strengthening; and 2) health, education,
environment, infrastructure, business development, and governance activities in geographic areas that
have been prone to conflict, and thus present obstacles to investment, economic growth and employment
generation. These areas are: 1) the Peru-Ecuador border region, where USAID efforts will help ensure a
lasting peace between the two countries; and 2) the seven departments that include Peru’s major cocagrowing
valleys, where USAID and other U.S. agencies work to combat the flow of illicit narcotics to the
United States and other markets to ensure that these areas are no longer a breeding ground for crime,
terrorism, and social unrest.
Other Program Elements: In addition to resources requested in the attached Data Sheets, a range of
USAID centrally-funded activities are implemented in Peru. In the democracy area, centrally-funded
programs complement the bilateral program in strengthening regional mechanisms to promote human
rights and rule of law, civil society, and educational reform. In the health sector, USAID/Washingtonbased
activities support maternal and child care, nutrition, and malaria control. Central funds also support
credit and small business development programs, as well as activities to alleviate the effects of poverty on
women and children.
USAID also manages three South American sub-regional programs that involve Peru: 1) the Andean
Region Trade Capacity Building program, which enhances capacity of the Andean Community as a
partner in the negotiations leading to the creation of the Free Trade Area of the Americas (FTAA) and
strengthens regional capacity to implement the rules of trade emerging from FTAA negotiations; 2) the
Centers of Excellence for Teachers Training (CETT) in the Andean region, training teachers who work in
disadvantaged communities to improve the quality of reading instruction; and 3) the Amazon Malaria
initiative which is a malaria control program.
USAID's program in Peru includes activities that contribute to seven Presidential Initiatives: Anti-Illegal
Logging, Global Climate Change, Digital Freedom and Water for the Poor, Clean Energy, Center for
Excellence in Teacher Training (CETT), and HIV AIDS.
Other Donors:
Official international technical cooperation to Peru for 2002 was over $364 million,
including both bilateral and multilateral assistance. The United States is the largest bilateral donor. Other
donors include: Germany (in democracy, environment, education and health, economic growth and water
and sanitation); Switzerland (in economic growth, natural resources and democracy); the United Kingdom
(in democracy, economic growth and health); and Spain (in democracy, education and health). Major
multilateral donors include the United Nations, the Inter-American Development Bank, the World Bank,
the Andean Development Corporation, and the European Community. Absent an effective mechanism
within the Government of Peru or donor community to broadly coordinate efforts, donors have relied on
sectoral-level working groups to share information, conduct analysis, and collaborate on program
design/implementation. Focus areas of these working groups include gender, basic education,
governance/decentralization, counternarcotics, health, environment, and nutrition.
Back to Top ^
|
