The Inter-American Development Bank (IDB) has approved a $100 million loan to help Peru further reduce poverty through the strengthening of its principal social protection and labor programs.
The country plans to improve essential health services for the poor mother-child population and is looking to increase the effectiveness and efficiency of its operations and of service delivery to its beneficiaries. The labor component aims to generate jobs, improve the labor market for the poor and protect their level of consumption during adverse economic shocks. It looks to strengthen the youth employment training program and to implement a labor information system.
An additional component of the program supports the strengthening of the country’s ‘targeting system’ so that the country’s social and labor programs are able to direct their benefits to the populations that need them the most.
Although poverty and extreme poverty have fallen steadily from 48.6 percent and 17.1 precent to 34.8 percent and 11.5 percent, respectively, between 2004 and 2009, based in part on Peru’s strong economic performance, efforts to substantially improve the living conditions of Peru’s poor remain a challenge. The current program bolsters Peru´s plan to accomplish this goal, by combining reforms in two key sectors for poverty reduction.