Peru is a significant partner in the promotion of democracy, stability, security, and human rights throughout Latin America. Its economy has been among the best-performing in the region in recent years, mainly due to strong mineral and hydrocarbon prices. Growth in Peru's gross domestic product slowed from 9.4 percent in 2008 to 2.2 percent in 2009. However, sound macroeconomic fundamentals, adequate fiscal reserves, and a healthy anti-crisis plan have positioned Peru relatively well to weather the global economic crisis. Despite aggregate economic growth, income inequality persists. Some 2.2 million individuals (eight percent of a population of 29.5 million) live on less than US$1.25/day. Women, children, and indigenous people living in rural areas and the highlands are the most vulnerable.

Peru has embarked on an ambitious decentralization reform process and is addressing regional disparities by bringing decision-making and delivery of public services closer to rural populations. This will address social conflict and manage and redistribute revenues (in large part derived from the extractive industries) so they directly target the poor and marginalized through increased health and education services.

Although Peru has made significant strides in education in recent years, the quality of education remains among the lowest in Latin America and the Caribbean, as shown by below-average scores for math and reading (UNESCO 2008). Peru's government has made it a priority to improve education standards, with special attention to reducing inequality by targeting rural areas and disadvantaged populations such as indigenous groups, women, and girls.

Find out what Canada is doing to support development in Peru.

Thematic Focus

In 2014, Peru was confirmed as a country of focus for the Government of Canada's international development efforts.

The overall goal of Canada's program in Peru is to reduce inequality in educational and economic opportunities for excluded populations in Peru.

Peru provides a framework for donor alignment through its National Policy on International Technical Cooperation (NPITC) for 2006-2011 (in Spanish — PDF, 560 KB, 25 pages), which ties together the national, sectoral, and regional policies that make up the country's development plan. Following an assessment of Peru's key development objectives of human development, economic growth and sustainability, and governance, Canada is responding to Peru's priority needs as expressed in its NPITC.

Children and youth

Canada supports efforts to strengthen the quality and efficiency of basic education, including intercultural education, for Peruvian girls and boys in rural areas and among indigenous populations by enhancing the managerial and technical capacity in education at national, regional and local levels.

Key anticipated results

  • Quality intercultural education for girls and boys
  • Provided access for boys and girls in Grades 1 and 2 to clear learning standards

Economic growth

Canada supports efforts to increase the participation of vulnerable populations in economic development through market-driven skills-for-employment programs and effective corporate social responsibility initiatives for the sustainable well-being of communities. Canada also supports the Government of Peru's decentralization reform by strengthening the capacity of regional governments to plan and deliver equitable and inclusive public services to their citizens and to sustainably develop the extractive and natural resources sector (especially mining).

Key anticipated results

  • Increased participation of small and medium-sized enterprises in the formal economy through training and access to credit
  • Implemented community-level sustainable development projects with extractive companies, regional and local governments, and non-governmental organizations
  • Enhanced the inclusive delivery, improved quality, and increased accessibility of public services at the regional level with a special emphasis on vulnerable populations—children and youth, women, and rural and indigenous populations
  • Improved management and resolution of social conflict in areas affected by extractive industries

Progress on Aid Effectiveness

Peru adheres to the Paris Declaration on Aid Effectiveness (PDF, 317 KB, 23 pages).

Ongoing efforts are required by donors to continue progress on aid effectiveness in partnership with Peru's International Cooperation Agency (APCI) (in Spanish). Canada is an active member of a number of donor committees, including education; governance; decentralization and modernization of the state; and equality between women and men.

Canada played a key role in creating a joint multidonor initiative in support of Peru's Ombudsman (Defensoría del Pueblo) (in Spanish), the key Peruvian organization that addresses human rights issues.

2014-2015 international assistance disbursements to Peru (in millions of dollars)

Global Affairs Canada28.27
Other departments and sources1.66