PERU COUNTRY STRATEGY

Transcription

1 PERU COUNTRY STRATEGY (Effective as f 2009) CIDA reviews all cuntry strategies peridically and may revise them t reflect changing pririties r circumstances. Canadian Internatinal Develpment Agency 200 Prmenade du Prtage Gatineau, Quebec K1A 0G4 Tel: (819) Tll free: Fax: (819) (Fr the hearing and speech impaired nly (TDD/TTY): (819) Tll free fr the hearing and speech impaired nly: ) inf@acdi-cida.gc.ca

2 Peru Cuntry Strategy Cuntry Develpment Cntext Current cntext: Freign plicy pririty and strategic ally fr the Gvernment f Canada in its engagement in the Americas. A significant player in the prmtin f demcracy, stability, security and human rights in Latin America. One f Canada's largest trading partners in Latin America, with cmmercial and ecnmic ties expected t expand with the new FTA (2008). Canada is ne f Peru's largest freign mining investrs, with prjected investments in 2009 f ver US$3 billin. Lwer middle-incme cuntry ($3450 GNI per capita Wrld Bank) endwed with a wealth f natural resurces, and with strng, lng-term develpment ptential. Ecnmy amng the best perfrming in Latin America in recent years largely due t strng minerals and hydrcarbns prices. Peru's GDP grwth declined frm 9.4 per cent in 2008 t a prjected 2.2 per cent fr 2009, hwever, sund macrecnmic fundamentals, adequate fiscal reserves and a US$3.4 billin Anti-Crisis Plan psitin Peru relatively well t weather the glbal ecnmic crisis. Plitically stable demcracy with a strng civil sciety. Despite ecnmic grwth, persistent high incme inequality: The richest 5th f Peru's ppulatin cntrls 56.7 per cent f ttal incme, while the prest 5th receives just 3.7 per cent, cntributing t persistent pverty, where 2.2 millin peple (7.9 per cent f the ppulatin) live n less than $1.25/day, largely in rural areas. Inequality has undermined scial chesin and threatens demcracy. Wmen and children, and the indigenus, living in rural areas and the highlands, are the mst vulnerable. Expectatins f imprved scial and ecnmic cnditins due t strng grwth have nt been realized fr Peruvian citizens. Recent plls shw grwing disenchantment with gvernment and elected fficials, especially in the regins. Upcming reginal (2010) and natinal (2011) electins are pivtal, as gvernment will have t address fiscal plicy challenges related t managing and redistributing the revenues which generate the funds that directly target the pr and marginalized, via services such as educatin and health. The Peruvian educatin system: While Peru has made great strides in educatinal cverage in recent years (n track fr MDG2), a fundamental imbalance exists between enrllment levels and what yuth actually learn. The quality f educatin is amng the wrst in Latin America and the Caribbean as shwn by belw average scres fr math and reading (UNESCO 2008). This situatin als has having serius repercussins n the labur market (Wrld Bank 2007). The Gvernment, cncerned with the ptential negative cnsequence n scial peace and ecnmic grwth, is nw devting imprtant effrts t address quality thrugh its Natinal Strategic Results-Based Budget, targeting the imprvement f primary schl learning utcmes as ne f five pririties, and thrugh its Multi-Annual Macr-Ecnmic Framewrk which states that educatin frm a very early age is key fr the cuntry s cmpetitiveness. The Gvernment recgnizes it needs help t imprve the system t: generate quality standards/measurement systems; develp an effective accuntability system t implement / mnitr; and, strengthen managerial/technical capacity f educatin actrs, frm the Ministry t lcal levels. Canada, USAID, Spain and UNICEF will supprt each accrding t their respective area f expertise. MDGs: n track t meet access t educatin; eradicatin f extreme pverty / hunger and child mrtality / maternal health achievable with additinal effrts; envirnment and gvernance gals may nt be met. Aid-effectiveness cntext Peru is a signatry t the Paris Declaratin n Aid Effectiveness. CIDA is an active member f the fllwing Technical Dnr Cmmittees: Educatin; Gvernance; Decentralizatin and Mdernizatin f the State; and Gender Equality. Onging effrts are required by dnrs t cntinue prgress n aid effectiveness by Peru s Internatinal Cperatin Agency (APCI). CIDA has strategically targeted these effrts n its sectrs f fcus, such as educatin, where alng with a small grup f dnrs wrking in educatin (USAID, Spain), it is explring ways t better crdinate / harmnize supprt t Peru s Natinal Educatin Plan; and n human rights, where with the cre dnrs f Peru s Ombudsman (Defensría del Puebl) basket fund, it has harmnized reprting. 2

3 Peru Cuntry Strategy 2009 Canada is 6 th (amng bilateral dnrs) verall, first in the extractive/natural resurces sectr and secnd in educatin, after the United States. The tp three dnrs (2007) t Peru are Japan (Envirnment, Water and Sanitatin, Natural Disaster Mitigatin), the United States (Educatin, Gvernance, Alternative Livelihd) and Spain (Gvernance, Educatin, Envirnment, Ecnmic Develpment). Canada played a key rle in creating Peru s first and nly prgram-based apprach (PBA), the multidnr basket fund supprting Peru s Ombudsman. 2. Pririty Needs and Canada s Value-Added Cuntry Develpment Plan Peru prvides a framewrk fr dnr alignment thrugh the Natinal Plicy n Internatinal Technical Cperatin (NPITC, ), which ties tgether the varius natinal, sectral and reginal plicies that articulate the cuntry s develpment visin. Canada is respnding t Peru s pririty needs as expressed in the NPITC, fllwing an assessment f its develpment bjectives: Human Develpment: imprving educatin standards, with special attentin t reducing inequality by targeting rural areas and disadvantaged ppulatins, such as indigenus grups and wmen and girls. Imprving learning utcmes and basic educatin is ne f the five pririties f the Ministry f Ecnmy and Finance s Results-Based Budget Plan. Ecnmic Grwth and Sustainability: ensuring that ecnmic success des nt cme at the expense f the envirnment and scial peace, bringing wrkfrce skills and prductin up t internatinal standards fr Peruvians t benefit frm recent FTAs. Gvernance: strengthening public sectr capacity t effectively implement refrms, including decentralizatin, accuntability and transparency, and implementing scial prgrams in a way that effectively reduces inequality. Canada s value added rests in its expertise and mdels in educatin (early childhd t technical/vcatinal training); enabling envirnment fr ecnmic grwth and increased trade, access t TRTA t benefit frm reginal/glbal trade liberalizatin, crprate scial respnsibility (including envirnmental stewardship and ensuring the pr benefit frm the activities f the extractive/natural resurces sectr), scial cnflict management; public sectr management (including management f the mining/energy sectrs), decentralizatin; and equality between wmen and men. Canadian Freign Plicy: Canada s cperatin prgram in Peru cntributes t the Americas Strategy bjectives f Demcratic Gvernance (e.g. Peru s Ombudsman, supprt decentralizatin t reginal gvernments) and Prsperity (e.g. regulatry refrms in extractive/natural resurce industries, crprate scial respnsibility - CSR). Canada s whle-f-gvernment presence in Peru is reinfrced by the activities f ther gvernment departments including DFAIT, IDRC, Exprt Develpment Canada and NRCan, which all cntribute t the implementatin f the America s Strategy. 3. Strategic Directin The bjective f the Peru prgram is t reduce pverty and inequality in a mre demcratic and inclusive Peru. T achieve this, the Peru Cuntry Strategy 2009 retains Children and Yuth frm its Cuntry Strategy 2008 and adds Ecnmic Grwth t strengthen the synergies with key reginal initiatives (SFE, TRTA and CSR) and respnd t stark ecnmic inequalities in the cuntry. In fact, the apparent cntradictin between persistent pverty and a healthy ecnmy in Peru is in large part explained by the high inequality affecting the cuntry. Cnsequently, the main prblem is nt the absence f wealth but the lack f institutinal means t effectively tackle sci-ecnmic inequality. Canada s traditin f prmting equal pprtunities thrugh public services is f particular interest and relevance. Achievements in : Over the past year, CIDA has cntinued t imprve learning utcmes f rural bys and girls by training teachers with Canadian mdels n effective teaching techniques and full participatin f cmmunity stakehlders in educatin, and t imprve capacity f State institutins in scial cnflicts management thrugh training f gvernment fficials and design f hw-t guides. 3

4 Peru Cuntry Strategy 2009 Fr 2009, Canada will cntinue t transfer expertise and mdels in supprt f: Children and Yuth: strengthen quality f educatin fr rural girls and bys fcused n quality standards and measurement, by enhancing managerial and technical capacity f educatin actrs frm Ministry t lcal levels, and prviding quality intercultural educatin. Ecnmic Grwth: increase the participatin f vulnerable ppulatins in ecnmic develpment, thrugh market-driven Skills fr Emplyment, effective CSR, and the enhanced ability f the GP and reginal gvernments t plan and deliver equitable and inclusive public services and effectively regulate the extractive/natural resurces sectr (incl. mining, hydrcarbns and hydr-electricity) in a sustainable manner. Equality between wmen and men: CIDA s prpsed prgramming aims t reduce gender gaps by supprting the implementatin f Peru s recent Law f Equal Opprtunities between Men and Wmen, and by ensuring that all CIDA prgrams apply equality principles. Envirnment: Ecnmic Grwth prjects related t the extractive/natural resurces sectr will specifically prmte the sustainable develpment and management f natural resurces. All ther prgramming will address envirnment sustainability as a crss-cutting theme (e.g. in the educatin curriculum, and in mnitring by Peru s Ombudsman). CIDA s prgram in Peru is cherent and mutually reinfrcing. Fr example, supprt t the decentralizatin prcess verall helps reginal gvernments t deliver educatin services in an effective and mre inclusive manner and accelerates decentralizatin in the ecnmic grwth sectrs specifically with an increased ability f reginal authrities t tap int their natural resurces fr their wn develpment. 4. CIDA s Prgramming Plan Plicy dialgue: The theme f prmting equality cuts acrss CIDA s plicy dialgue with Peru. In Educatin, quality and inclusiveness will cntinue t be addressed with the natinal Ministry f Educatin and reginal authrities. Dialgue with the Ministry f Energy and Mines will expand t include crprate scial respnsibility and CIDA will invlve the newly created Ministry f the Envirnment in dialgue related t the extractive/natural resurces sectr. Dialgue with gvernance partners such as Peru s Ombudsman will include the abve issues, in additin t human rights and scial cnflicts. Pverty reductin: Cnsidering the extreme reginal disparities in Peru, planned prgramming in Gvernance, Educatin and Ecnmic Grwth will target gegraphic regins that cntribute mst t inclusiveness and t reducing pverty amng the mst vulnerable. Inter-American Prgram: Bilateral prgramming will be reinfrced thrugh supprt prvided t hemispheric institutins (Inter-American Cmmissin n Human Rights, OAS) t increase their wn capacity and that f public institutins at the cuntry level (electral and demcratic prcesses, human rights, public accuntability). Supprt t the Latin American and Caribbean assciatin f il and gas cmpanies (ARPEL) als reinfrces the bilateral prgram s wrk in this sectr. Opprtunities and benefits f increased trade and investment thrugh Canada s trade agreements will be maximized thrugh the prvisin f trade-related technical assistance (imprved market access, CSR practices, prductin standards and regulatry framewrks). Canadian Partnership Branch (CPB): Peru ranked 6th ut f 33 cuntries in the Americas in which CPB was active in CPB delivered $4 millin thrugh 32 Canadian partners, cntributing t Ecnmic Grwth; Gvernance; Health; and Educatin. In gvernance, Canadian partners prvided supprt t lcal cmmunity rganizatins in rural develpment and natural resurce management, empwering lcal grups, wmen and children. Key vluntary sectr rganizatins such as CUSO-VSO, Cnsrtium WUSC-CECI, and SUCO will be engaging an estimated 160 vlunteers frm t supprt lcal cunterparts in Peru. Partners wrking with bth CPB and the bilateral prgram include: CARE Canada, WUSC-CECI, and TFO Canada. CPB will cntinue t seek cherence and/r interlinkages with ther CIDA cuntry prgramming. Multilateral and Glbal Prgrams Branch: In , CIDA cntributed apprximately $1.8 millin t Peru thrugh cre funding t multilateral and glbal institutins, cmplementing bilateral prgramming, fr example: Inter-American Develpment Bank fcus n ecnmic grwth, imprving scial plicy, reducing pverty, prmting equality, prtecting vulnerable grups and strengthening gvernance. 4

5 Peru Cuntry Strategy 2009 Wrld Bank fcus n ecnmic grwth, pverty reductin, educatin and gvernance, and synergies with envirnmental sustainability and extractive sectrs. Aid Effectiveness: Canada intends t respnd t APCI's request t strengthen its capacity t effectively crdinate dnr effrts in Peru. We are als explring ways f jining effrts with ther dnrs in the extractive/natural resurces sectr thrugh, fr example, delegated cperatin n artisanal mining with the Swiss COSUDE and aligned prgramming with GTZ and the Wrld Bank n sustainable natural resurce management. In additin, CIDA will tap int the wealth f existing analyses and cnduct jint assessment wrk with ther dnrs active in ur sectrs f fcus. Prgramming Mdalities: Seek new PBA pprtunities t prvide technical assistance t the GP and regins. Fewer and larger prjects in a balanced prtfli with relatively even prprtins f directive prgramming, grants t multilateral institutins and respnsive prgramming with Canadian and Peruvian rganizatins. Onging cnsultatins with Peruvian authrities, civil sciety and private sectr in the develpment f specific initiatives. Cnslidatin f lcal funds int ne Strategic Gvernance Mechanism fr synergy, effectiveness and efficiency. Emphasis n supprt t newly created reginal gvernments and their institutins. Prgress t full decentralizatin by 2012/13 t hub-and-spke mdel fr Suth America, fr strengthened prgram delivery, effective use f resurces and accuntability fr results. Recmmended bilateral aid budget: : $23 M : $30 M : $30 M 5

6 Peru Cuntry Strategy Results and Risk Identificatin The Prgram s ultimate utcme is reduced pverty and inequality in a mre demcratic and inclusive Peru. Results: Children and Yuth: Quality Educatin fr Rural Children; Management and Technical Capacity in Educatin; Intercultural Educatin EXPECTED Intermediate Outcmes: Increased quality f educatin fr rural children Imprved management and technical capacity Intercultural educatin prvided EXPECTED Immediate Outcmes and Outputs: 300 early childhd/primary schl teachers, principals and specialists prvide quality intercultural educatin directly t 8100 students and indirectly t anther 73,000 children Imprved enrlment, retentin and educatin achievements f 4,300 rural yung peple, enhanced life skills, increased student and teacher participatin Enhanced ability f the state, including decentralized institutins (e.g. 4 reginal gvernments, schl cuncils), t plan and deliver efficient, inclusive and quality educatin services t the ppulatin. Ecnmic Grwth: Skills fr Emplyment, Crprate Scial Respnsibility and Enabling Envirnment EXPECTED Intermediate Outcmes: Strengthened skills fr emplyment Effective crprate scial respnsibility Imprved regulatry and legislative capacity and framewrk fr ecnmic grwth that benefits the peple, fcussed n the extractive/natural resurce sectr (incl. mining, hydrcarbns and hydrelectricity) Imprved preventin and management f resurce-based cnflicts EXPECTED Immediate Outcmes and Outputs: Skills training prgrams better meet the needs f industry and use cmpetency-based apprach. Imprved access t training t technical and vcatinal skills fr marginalized and yung persns. Imprved access t jbs in the lcal markets fr marginalized and yung persns. Strengthened understanding and cnstructive implementatin f the extractive industry's CSR bligatins by lcal / reginal gvernments and their ppulatins. Cmmunity-level sustainable scial and ecnmic develpment prjects implemented thrugh partnerships with extractive firms, lcal / reginal gvernments and NGOs. Imprved cllabratin and dialgue amng extractive sectr stakehlders. Enhanced ability f the state and decentralized institutins (e.g. 4 reginal gvernments and Defensria del Puebl) t execute their functins relating t the sustainable develpment f extractive/natural resurces, t manage scial cnflicts and t prvide fr the equitable and inclusive betterment f their citizens. Increased capacity f lcal ppulatins t mnitr and versee extractive/natural resurces sectr activities. Increased number f SMEs participating in the frmal ecnmy by raising the quantity and quality f training, access t credit, prtectin f prperty rights. 6

7 Peru Cuntry Strategy 2009 Risks A risk ranking fr the Peru Prgram was cmpleted in 2008 and the Risk Assessment Prfile will be finalized in Amng key risks: Sci-plitical, stability/security, ecnmic, cnflict and gvernance: There is a risk that dissatisfactin with inequitable distributin f ecnmic benefits might increase risk f scial unrest. Mitigatin: CIDA prgrams supprt credible rganizatins that address/redress public grievances and cnflicts and strengthen plicy, regulatins and scial utreach, especially in the extractive/natural resurces sectrs. There is a risk that the financial crisis and the fall in cmmdity prices limit private resurces available fr and interest in crprate scial respnsibility in extractive sectrs. Mitigatin: CIDA prgrams balance activities with gvernment, private sectr and cmmunities, allwing fr greater emphasis n gvernance and cnflict-reslutin aspects until grwth resumes. 7