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Rural poverty and social inclusion in Peru

Posted by Greg Benchwick Tuesday, September 18, 2012

In-depth analysis with Roberto Haudry
Roberto Haudry is IFAD's Country Program Manager for Peru. In this in-depth interview, he looks at the various mechanisms for social inclusion, citizenship and rural poverty reduction in the country, also giving an overview of IFAD's funding and how new innovative methods can work to end rural poverty.

IFAD funding for Peru at a glance
Since 1980 IFAD has provided nine loans to Peru, for a total of US$124 million, directly benefitting some 120,000 households.

Recently completed IFAD-financed projects in Peru have included the Management of Natural Resources Southern Highlands Project (MARENASS) and the Development of the Puno-Cusco Corridor Project (Corredor).

On-going projects include the Market Strengthening and Livelihood Diversification in the Southern Highlands Project (Sierra Sur), which is entering its second phase with US$8.2 million in IFAD financing, and the Strengthening Assets, Markets and Policies for Rural Development in the Northern Sierra Highlands Project (Sierra Norte). The US$22 million Sierra Norte Project includes a US$1.8 million grant from the Global Environmental Facility for sustainable management of protected areas.

Project achievements over the years
The MARENASS, Corredor and Sierra Sur Projects have enabled approximately 100,000 poor rural households to step out of poverty.

The first phase of the Sierra Sur project came to a close in 2011. Initial reports indicate increases in annual income of around 150 per cent, a 40 per cent reduction in chronic malnutrition, and a 360 per cent jump in active savers. Gender equity within the project area has jumped by as much as 20 per cent.

The MARENASS project, which closed in 2004, resulted in 25 per cent increases in household incomes, and significantly improved productive yields for cash crops such as peas, corn and quinoa.

The Corredor Project closed in 2008, after enabling some 53,000 rural households to step out of poverty. The total cost to reach each household dropped by more than US$1500 from project design to completion. Sierra Sur has reported similar efficiencies with a 50 per cent improvement in funding efficiency.

Peru is a middle-income country with a growing gross domestic product; nevertheless, the national rural poverty rate is 54.2 per cent, with 20 per cent rural people in the Sierra region considered extremely poor.

Learn more
The IFAD Executive Board will review a new rural poverty project for Peru in its September Session. You can also learn more with our new fact sheet on Peru in English or Spanish.

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