US$400 million approved for social programs against poverty in Peru

(Caracas, July 9, 2007).- The Andean Development Corporation today approved a US$400-million loan for the Republic of Peru to support the Program of Social and Infrastructure Investments against Poverty, a multi-sectoral social plan promoted by the government, with the Ministry of Economy and Finance as executing agency.

CAF president & CEO Enrique García said, "The idea is to contribute to the government's policy of reducing extreme poverty through an approach based on integrated human development under the concept of territoriality, as part of the gradual process of regional decentralization." This is based on the fact that although Peru has enjoyed continuous economic growth for the last five years and poverty levels have fallen, about 50% of the population has not received any benefit, and the investment deficit in social infrastructure is estimated at US$23 billion," he added.

One way to reduce poverty is to give people the capacity to use the resources available to them efficiently in order to improve their income and quality of life. In this respect, the Peruvian government is making an important effort in favor of decentralization by executing investments in infrastructure and social programs, which generate employment, narrow the poverty gap and improve family income, combined with the possibility that access to public services opens opportunities for learning, commerce, production and savings, among others.

The estimated cost of investment in the Program for 2007 is US$400 million, with territorial and sectoral scope. The overall impact on the targeted low-income sectors will be evaluated at a later stage.