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FY 1997 Development Assistance: $ 31,650,000
FY 1997 International Narcotics Control Fund: $ 20,000,000
FY 1997 P.L. 480, Title II Request: $ 55,600,000
Introduction.
Peru continues its efforts to build a modern, prosperous state within a democratic society out of the ashes of near total economic and societal collapse during the 1980s. A broad range of reforms, coupled with the successful suppression of terrorism, have made Peru more stable. Peru is beginning to address its significant social problems. However, Peru is still building individual, institutional, and societal capacity to achieve the political, social, and economic conditions to promote sustainable development over the long term.
Peru's political, economic, and social stability is important to long-term U.S. interests in the region. Fundamental U.S. foreign policy interests in Peru include support for Peru's fragile democracy and reduction of coca production and trafficking of coca-based products. USAID's development assistance to Peru directly addresses these interests through programs to strengthen Peru's democracy and an alternative development program. There also are important U.S. interests in extending the benefits of economic growth to the poor and in expanding trade and investment opportunities. USAID assistance also supports these objectives by promoting programs to reduce population growth rates, to improve health and nutrition, to improve human capacity development, and to ensure appropriate stewardship of natural resources, including biodiversity. These efforts contribute to stability in Peru and the region.
The Development Challenge.
The Government of Peru (GOP) has made significant progress in stabilizing the economy, restoring economic growth, reducing state intervention in domestic markets, and curbing the internal security threat of political terrorism. It has begun to address the needs of those living in poverty, strengthen its democratic institutions, and address the problem of coca production and trafficking.
The GOP's adherence to economic reforms has resulted in a decline in inflation from 7,650% in 1990 6.8% in 1995. Despite these encouraging trends, the sustainability of Peru's economic and political recovery will depend on broadening the base of economic growth, human capital development, and new investment. GOP institutions must be modernized to improve their capacity to develop and implement reforms and programs. Political power must to be decentralized to improve the responsiveness of government institutions to local development needs.
Poverty, underemployment, lack of access to quality education, malnutrition, and high levels of preventable mortality and morbidity remain serious impediments to Peru's sustainable development despite some recent progress. The number of Peruvians classified as living below the poverty threshold was 11.3 million in 1995, or 50% of the population, down from 55% in 1991. Those living in extreme poverty, whose expenditures do not reach the minimum per capita cost of food of a basic family basket, dropped from 24% to 19% during the same period. Most of the economically active population, especially women, is affected by underemployment. In 1994, only 17% were adequately employed, while 74% were classified as underemployed and 9% as unemployed. Although primary education enrollment rates are 88%, the system is plagued by very low attendance rates, especially in rural areas. The illiteracy rate in rural areas is 28%. The illiteracy rate for rural women is 46%. The national rate of chronic malnutrition among school children is 48% and, in some highland departments, is 72% with concomitant detrimental impacts on national development of the human resource base. National life expectancy is 10% lower than in neighboring middle-income countries, while infant and child mortality are twice as high. Fertility remains high in rural areas. The highmortality and morbidity associated with the termination of unwanted pregnancies evidence a continuing unmet need for family planning services. One of the major goals of the current government is to reduce extreme poverty levels from the current 19% to 9% by the year 2000. Also, the GOP has stated its intention to increase access to quality health, education, and justice services. Recently the GOP President put all the power and support of his office behind the national family planning plan. Rehabilitation and construction of schools in the most remote areas will be a priority and, with the assistance of multilateral donors, the GOP will undertake major activities to improve the quality of, and access to, education.
Peru's future growth potential also depends greatly on its ability to manage the country's natural resources for long-term sustainable use. Peru is one of the most biodiversity-rich countries in the world. Approximately 12.7 million hectares are under some form of legal protection. The country has 679,000 square kilometers of natural forests, and the yearly deforestation rate is estimated at 4%, or 2,700 square kilometers. Additionally, more than 2.4 million hectares of agricultural land are degraded. Industrial and household wastes contaminate the main coastal rivers and the sea, and two of the four key rivers in the jungle are polluted due to oil drilling and from precursor chemicals from coca processing. Mining pollution has severely degraded the air, lakes, rivers, and streams, especially in the highlands. Solid waste treatment in urban areas is deficient, with only 32% of solid wastes being properly disposed of and the remainder being dumped into nearby rivers or the sea. The GOP has only recently begun to grapple with these major environmental issues.
Peru has made steady progress in restoring constitutional government, in reducing human rights violations, and in respecting the rule of law. Free and fair presidential, congressional, and municipal elections were held in 1995. New institutions such as the Judiciary Council, Judicial Academy, the Constitutional Guarantees Tribunal, and the Office of the Ombudsman were legally established, and Peru's human rights record improved. The GOP has demonstrated clearly a commitment to democratic electoral processes. The impressive gains of opposition candidates in the November 1995 municipal elections, and the president's public show of respect for the outcome, bode well for consolidating democracy. USAID-financed polls conducted in 1994 indicate that 83% of Peruvians prefer a democratic system and 63% participate in some type of local organization. Decentralization is seen by 46% of Peruvians as the most important factor for development. Reforms in the judicial system also are envisioned to improve efficiency and provide equal and responsive access to the poor.
Peru remains the world's leading producer of coca leaf. In 1995, potentially over 183,000 tons of coca were grown, surpassing Colombia and Bolivia, and with a gross effect on the economy of $1 billion, or more than 2% of the Gross Domestic Product (GDP) in that year. The United Nations estimates that the drug industry, including cultivation, processing, and transportation, accounts for up to 11% of GDP. The expansion of coca production and trafficking continues to cause serious social, economic, political, and environmental harm to Peru. Domestic drug abuse is expanding at a high rate, further compounding Peru's social problems. Narco-dollar liquidity has distorted exchange rates and fed corruption. Links between narco-traffickers and terrorists have critically harmed civil governmental authority in the coca-growing areas, promoting anarchy and seriously impeding democratization and broad-based development efforts. Deforestation, erosion and disposal of toxic chemicals resulting from the processing of coca are causing ecological damage in these areas.
Major goals of the current government are to suppress terrorism, to eradicate corruption in the government, and to reduce narco-trafficking activities, one of the major causes of corruption and terrorism. However, the GOP believes that poverty reduction is the main weapon to fight terrorism and narco-trafficking. Although the GOP is committing more resources to these efforts, major reforms under this ambitious agenda are unlikely to succeed without the continued development assistance and support of donors, both bilateral and multilateral.
Other Donors.
Net official development assistance (ODA) disbursements to Peru in 1994 were $416.6 million, from which the U.S.'s contribution accounted for 20.4%. The United States was the principal non- multilateral development bank donor. The United Nations, Japan, Germany, and the European Development Fund provided almost 50% of ODA, directed principally to human resources development, health and social development, economic support, and humanitarian assistance. In addition, the Inter-American Development Bank (IDB) and the World Bank have increased their assistance to Peru, playing a major role in the country's development efforts in the areas of economic support, road rehabilitation, health and social development.
FY 1997 Program.
USAID's program is focused on critical components for the United States to meet its primary foreign policy goals. To successfully accomplish these goals requires a concerted effort to promote open, transparent, and accountable political systems; a politically dynamic civil society wherein people and communities actively participate in their development and decision-making; market-driven, broad-based economic growth that provides opportunities for economic diversification, including viable alternatives for those currently dependent on the coca trade; appropriate environmental protection and pollution prevention; and a strong and healthy human resource base that can take advantage of economic opportunities and be informed, capable participants in the political life of the country.
To address Peru's evolving development needs and U.S. foreign policy objectives, USAID pursues four strategic objectives. These respond to four of the five agency goals to achieve sustainable development. They are: (1) b roader citizen participation with more responsive public institutions; (2) increased incomes of the poor; (3) improved health, including family planning, of high-risk populations; and (4) improved environmental conditions in targeted areas. Additionally, a special objective related to USAID alternative development and drug-awareness efforts, which is directly and indirectly interrelated with all USAID strategic objectives, has been incorporated into the framework in recognition of the United States' overriding foreign policy objective for the Andean countries in counternarcotics, specifically coca production in Peru.
Agency Goal: Building Democracy
While there have been some notable successes, such as a series of free and fair elections, Peru's democracy remains fragile and uneven. Its development is constrained by the related weaknesses of an unresponsive public sector and lack of participation by civil society groups and individuals. The public sector suffers from an imbalance of power weighted heavily toward the executive, an overly centralized system, and a lack of institutional development. Many private citizens and groups have been excluded from the process and are struggling to participate effectively. These constraints -- coinciding with a history of human rights abuses -- have inhibited Peru's broad-based development.
USAID's strategic objective of "broader citizen participation with more responsive public institutions" focuses on these concerns. Undoubtedly the major success in 1995 occurred in the electoral area. USAID was the primary donor supporting national elections in April and municipal elections in November, both of which were declared free and fair by local and international observers. This provided legitimacy to the elected government and helped Peru's reinsertion in the international community. USAID's pioneering work over the past several years in the area of decentralization and local government strengthening has resulted in GOP support for decentralization. The increasingly greater emphasis on decentralization, on strengthening underdeveloped and unresponsive institutions, and on the need for heightened civic awareness and participation will require sustained development assistance from USAID to further consolidate and strengthen democracy in Peru.
The USAID strategy for Peru places great emphasis on the need to incorporate the poor into the expanding market economy in order to reduce the high rates of poverty and food insecurity. Low productivity is a major cause of poverty in Peru, which in turn is reflected in inadequate investment in human and physical capital, infrastructure, and supportive public policies and institutions. However, terrorism, social dislocation, and the neglect and abandonment of a large segment of the population by past governments have all contributed greatly to poverty in the country.
USAID's strategic objective to "improve incomes of the poor" directly addresses these root causes of poverty through four areas of concentration: making the policy framework adequate, increased production and productivity, increased market access for poor farmers, and improved human resources. Specific actions being carried out by USAID under this objective are: improved financial institutions for the poor; development and dissemination of appropriate production technologies and inputs, e.g., seeds; small farmer and microentrepreneurial organization and training; improved market knowledge and organization; nutritional improvement; small-scale infrastructure development; and improved sectoral policies, especially related to marketing, trade, finance, and public revenues and expenditures.
P.L. 480 Title II resources represent a major component of the assistance targeted to achieve this strategic objective. P.L. 480 Title II activities are used to achieve dual humanitarian and development assistance objectives. Approximately two million poor Peruvians are direct or indirect beneficiaries. In 1995 USAID's food aid program consists of four food distribution activities implemented by USAID and Peruvian PVOs. The PVOs target the food aid based on criteria of extreme poverty, high incidence of malnutrition, low agricultural output and unsatisfied basic needs. The PVOs have assistance strategies to improve the food security of extremely poor beneficiaries. One strategy is to provide temporary food support to extremely poor women while simultaneously working to educate them on nutrition, health and family planning; and assisting them with credit, tools or equipment to enhance their incomes. Another strategy is food for work whereby production or income is enhanced by the construction of community infrastructure.
Key achievements during 1995 include greater market access by small farmers and microentrepreneurs (new sales of $11.0 million and $1.4 million, respectively) and improved focusing of directed food assistance to reach 270,000 nutritionally at-risk children. In 1995 employment was provided to hundreds of thousands of poor beneficiaries using P.L. 480 Title II resources and hundreds of thousands of high-risk mothers and young children also benefited through direct feeding programs.
Major constraints to accomplishing the strategic objective are the lack of a GOP medium-term development plan which focuses public sector investments on poor areas and populations, continued lack of access by the poor to markets, and lack of adequate agricultural production technologies. USAID proposes to deal with these constraints through its existing activities in these areas.
In addition, USAID's Alternative Development program in Peru is an effective tool in promoting sustainable development and, at the same time, reducing coca production. Alternative Development is one part of the two-part (law enforcement is the other component) U.S. counternarcotics strategy for the Andean countries to reduce coca production. There are two activities included under this
special objective: the Narcotics Education and Community Initiatives project (NECI) and the Alternative Development project. NECI has established a positive reputation in promoting drug awareness not only in Peru but throughout Latin America. Its activities have raised consciousness of the effects of illegal drug usage in Peru to over 50% of the population, and the project implementor is viewed as the major Peruvian non-governmental organization nongovernmental organization (NGO) promoting drug education. The Alternative Development project specifically addresses sustainable development interests in rural coca growing and outmigration areas. It began in 1995 and has rapidly established a presence in all five target areas. Local Government Development project activities, although under the USAID's democracy strategic objective, also support this special objective by strengthening localgovernments, expanding people's participation in decision-making, and creating the public confidence needed to implement sustainable development in the same five Alternative Development project areas.
Providing Humanitarian Assistance
The P.L. 480 Title II program in Peru fufulls both humanitarian and developmental objectives. Food aid benefits the neediest members of Peruvuan society through developmental activities that: (1) stimulate income growth and employment opportunities of small farmers and microentrepreneurs, especially poor women; and (2) promote integrated interventions to improve primary health services for nutritionally at-risk families. The P.L. 480 Title II activities are fully integrated into USAID's strategic objective 2 and support achievement of strategic objective 3 as discussed above.
|
Encouraging Economic Growth |
Stabilizing Population Growth and Protecting Human Health | Protecting the Environment | Building Democracy | Providing Humanitarian Assistance | Total | |
|
USAID Strategic Objectives |
||||||
|
1. Broader Citizen Participation in Democratic Processes Dev. Assistance INCF |
736,000 |
122,000 |
1,693,000 |
|
2,551,000 |
|
|
2. Increased Incomes of the Poor Dev. Assistance P.L. 480 Title II INCF |
5,027,000
|
463,000 3,000,000 |
|
350,000 |
55,600,000 |
5,840,000 |
|
3. Improved Health Including Family Planning of High-Risk Populations Dev. Assistance |
|
19,066,000 |
19,249,000 |
|||
|
4. Improved Environmental Conditions in Targeted Vulnerable Sectors Dev. Assistance |
|
|
4,010,000 |
4,010,000 |
||
|
5. Special Objective for Alternative Development INCF |
9,000,000 |
9,000,000 |
||||
|
Total Dev. Assistance INCF P.L. 480 Title II |
5,946,000 9,000,000 |
19,651,000 3,000,000
|
4,010,000
|
2,043,000 8,000,000 |
55,600,000 |
31,650,000 20,000,000 55,600,000 |
USAID Mission Director: George Wachtenheim
PROGRAM: PERU
TITLE AND NUMBER: Broader Citizen Participation and More Responsive Public Institutions, 527-SO01
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997: $2,551,000 (DA); $8,000,000 (INCF)
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2002
Purpose: USAID seeks to expand the participation of citizens in the myriad events that affect their lives, while also ensuring that government is more responsive to their needs.
Background: Promoting democracy is the highest USAID priority in Peru. A significant portion of the population has been marginalized, and democratic institutions have atrophied during a decade of terrorism, narco-trafficking and economic decay. Recent successes in addressing these problems provide a foundation for greater democratic development. There have been some recent notable advances. Free and fair elections have been held. New judicial institutions have been established. The democratic development of Peru, however, has been dampened by an authoritarian (albeit democratically-elected) central government and a lack of widely held civic values by the citizenry. To address these constraints USAID will focus on promoting effective local groups and more responsive local and central governmental institutions. The USAID strategy is implemented through three projects which mobilize citizen interest and support in making public institutions more responsive. The Participatory Democracy (PARDEM) project provides assistance to the GOP electoral bodies and nongovernmental organization (NGOs) to strengthen the electoral system, to the Controller General to improve public accountability, and to local NGOs to promote civic awareness. The Justice Sector Support (JUST) project provides assistance to local human rights groups to defend those unjustly accused of terrorism, to inform citizens of their rights, and to promote the development of the Ombudsman Office. The Local Government Development (LGD) project supports the decentralization process by strengthening local governments and promoting community participation in governance.
USAID Role and Achievements to Date: Recent USAID assistance has focused on elections, human rights, decentralization, and public accountability. USAID was the primary donor supporting the national elections in April and local elections in November 1995. Both elections were declared free and fair. Almost 200 persons unjustly accused of terrorism have been released from jail, and the first comprehensive survey on Peruvians' perceptions of the human rights situation has been completed. The Controller General is now prepared to upgrade its audit capability and to train its staff. Civic awareness activities have promoted greater citizen awareness and involvement. Recently elected congressmen received training on the roles and function of congress that better prepared them for their new jobs. Recently elected mayors and other local government officials are being trained. Community participation in the development of local infrastructure projects continues to increase. A decentralization law has been drafted. The U.S. Participant Training Alumni Association (ABEUSA) has developed into an active institution, promoting civic activities and transferring the experiences its members gained from training in the United States.
Description: In FY 1997, USAID will continue to focus on four areas: greater access to justice, greater civic awareness, more accountable public institutions, and more responsive local governments. To promote greater access to justice, the USAID will continue to work with human rights groups and to provide assistance to GOP justice sector institutions. To achieve greater civic awareness, USAID will provide assistance in civic education and strengthening local NGOs. More accountable public institutions will be attained through continuing efforts to strengthen and consolidate the electoral system and key GOP electoral institutions, and by promoting the ability of congress to function as an effective and independent democratic institution. To foster more responsive local governments, activities will
continue to strengthen local governments, to promote community participation, and to assist in the development of appropriate legislation.
Host Country and Other Donors: For many years, USAID was the only donor providing significant assistance in the democracy sector. Recently, however, other donors have become involved in the sector. Given the immense task and limited resources, USAID has coordinated with and encouraged other donor assistance in the democracy sector. As a result, the World Bank is planning a large judicial modernization project ($25 million). The Inter-America Development Bank (IDB) may co-sponsor the World Bank judicial modernization project. The European Union (EU) is assisting in developing the Judicial Academy ($1 million) and is considering grants to local NGOs and human rights groups. The World Bank and the IDB are designing several local government strengthening projects for a potential total of $240 million. The GOP is politically committed to this strategic objective. It has established and provided limited funding to certain key institutions (such as the Judicial Academy and Judiciary Council). Significant direct contributions to the Controller General and Local Government Development projects are formalized and being provided under the framework of bilateral agreements. Estimated host country contributions over the life of the strategic objective are $10,000,000.
Beneficiaries: Although targeted, the impact of democracy activities tends to benefit a wide segment of the population. The most direct beneficiaries are individuals previously excluded from participating, local groups that implement activities and are strengthened, local governments (particularly in target areas), key electoral bodies, the Controller General and congressional members and their staffs.
Principal Contractors, Grantees, or Agencies: USAID implements democracy activities through U.S. and local NGOs, the GOP Ministry of the Presidency Institute for National Development and the Controller General.
Major Results Indicators:
Baseline1/ Target
Freedom House Rating Partly Free (1995) Free (2002)
Political Rights index 5 (1995) 2 (2002)
Civil Liberties index 4 (1995) 3 (2002)
Purpose: To provide access to the poor to income-generating opportunities which will result in reduced poverty and improved food security. This strategic objective will be achieved by focusing on four principal areas: adequate policy framework, increased production and productivity, increased market access, and improved human resources.
Background: Almost one-fifth of Peru's population is considered to be extremely poor (with insufficient income to provide minimum nutritional requirements), while almost one-half of the population is classified as poor (with insufficient income to provide the basic needs of clothing, shelter, and education). As a result of widespread poverty, the majority of Peruvians face serious food insecurity -- especially malnutrition among children less than 5 years of age. To remedy this situation, efforts will be focused on increasing incomes of the poor population. After several years of success in macroeconomic policy adjustments, the GOP is now focusing increased efforts on poverty alleviation and incorporation of the disenfranchised into the market economy.
USAID Role and Achievements to Date: As a result of USAID assistance, channeled principally through private sector and not-for-profit organizations over 270,000 nutritionally at-risk children have received much needed food and medical attention, over 200,000 heads of household in poor areas have been employed using food for work, yields of selected small farmer crops (potatoes, onions, garlic, dried beans, and coffee) have doubled, new sales of $1.4 million of apparel and handicrafts by microentrepreneurs and of $11 million of targeted small farmer agricultural commodities (especially coffee and yellow onions) have been generated, and ten new markets for targeted commodities have been opened in the United States and Europe.
Description: USAID's major effort at strengthening the access of the poor to the market economy is focused on assisting microentrepreneurs and small farmers to identify market demand for their products, to utilize appropriate technology to efficiently produce these products, and to obtain financing and market links. Funding is being provided by USAID to analyze and improve the policy and regulatory framework to support increased participation by the poor in the market. Food assistance programs through nongovernmental organizations (NGOs) provide support to the poorest populations in rural areas for nutritional improvement, especially through direct feeding programs for nutritionally at-risk children under the age of five. They also support temporary employment opportunities of the poorest populations, the improvement of physical infrastructure, and the provision of inputs and credit to improve the production for on-farm household consumption. To assure the efficient utilization of these resources, NGOs are being strengthened.
Host Country and Other Donors: In 1995, the GOP allocated 42% of its total budget for social expenditures, principally through its corresponding sectoral ministries and its social investment program. Five of the largest donors to Peru (World Bank, IDB, Japan, Germany, and the European Economic Community) will provide over $1 billion over the next five years for irrigation and transportation infrastructure, social investments in poor rural areas, basic education and microenterprise support -- all important factors in increasing access of the poor to economic opportunities. Estimated host country contributions over the life of the strategic objective are $9,260,000
Beneficiaries: Beneficiaries under this objective are poor people (households, small farmers, microentrepreneurs) who are located principally, but not exclusively, in the highland area of the country where poverty is the greatest. Over the next two years, beneficiaries will include 120,000 malnourished children being fed, 240,000 heads of household with temporary employment, 65,000 small farmers with improved production practices, 5,000 microentrepreneurs with new markets, and 3,000 women with access to credit.
Principal Contractors, Grantees, or Agencies: Principal implementors of USAID-funded activities are public sector ministries of Agriculture, Health and the Presidency; private sector Exporters Association and Businessmen's Association; and U.S. PVOs, CARE, the Relief and Development Agency of the Adventist Church (ADRA), and Private Voluntary Agencies Collaborating Together (PACT): and local NGOs, CARITAS and the PRISMA Benefical Association..
Major Results Indicators:
Baseline Target
Value of expenditures of the rural poor
($ per year per capita) 194 (1991) 260 (2000)
Percentage of poor in the population 55 (1991) 46 (2000)
Per capita food availability in calories 1,883 (1992) 2,200 (2001)
Number of jobs created among the poor ---- 36,500 (1999)
Purpose: To help low-income Peruvians, particularly children and women, enjoy longer lives and a higher quality of life, making it easier for them to take appropriate actions to promote health, and by supporting the development of the sustainable health systems that will ensure access to services.
Background: On a national level, infant and child mortality and fertility have declined over the years of USAID assistance to Peru. Yet dramatic imbalances persist, with mortality and fertility unacceptably high among Peru's low-income populations in peri-urban and rural areas. To work toward more equitable development in Peru, improvements must be made in both the supply side of health service (access to care and quality of care) and the demand side (acceptance of services), as well as in people's own self-care in the home and the community. This program includes activities to address all four of these key factors -- access, quality, acceptance and self care.
USAID Role and Achievements to Date: USAID support includes major child survival and family planning interventions, as well as quick response to emerging diseases. As a result, immunization of infants (children under 12 months) nationwide rose during 1991-94 from 71% to 87% for the triple vaccine of diphtheria, pertussis and tetanus from 74% to 87% for polio and from 60% to 74% for measles. Additionally, a special measles campaign supported by USAID in May-June 1995 achieved a spectacular coverage of 95% of children under five. USAID activities have contributed substantially to reductions in infant deaths over recent years. United Nations Children's Fund (UNICEF) data show a long-term decline trend, with 143 infant deaths per 1,000 live births in 1960 decreasing to 43 deaths in 1993. Likewise, two USAID-supported national surveys during recent years reveal noteworthy achievements. They show infant mortality declining from 73 deaths per 1,000 during 1982-86 to 55 deaths per 1,000 during 1987-91, a reduction of one-fourth. In the same timeframe, mortality of children under five declined by approximately 26%, from 106 to 78 deaths per 1,000. UNICEF long-term trend data corroborate this accomplishment; they show under-five mortality decreasing from 236 in 1960 to 62 in 1993.
In family planning, the achievements also have been dramatic. Couple years of protection (the generic way to measure contraceptive use and distribution) in the public and nongovernmental sectors together almost doubled during 1993-95, rising from 598,673 to 1,131,981, an increase of 89%. During the last year alone (1994-95), increases have likewise been marked. Preliminary Ministry of Health data show a nationwide rise in contraceptive use of 33%, with all methods experiencing an absolute increase. While some of that increase may be due to better reporting, it is doubtless that USAID's achievement, as the major donor in family planning, has been great. Further, contraceptive sales generated through social marketing supported by USAID have risen by 52% during 1992-94. Fertility has similarly declined notably. Total fertility (average births per woman over a lifetime) went from 4.1 in 1986 to 3.5 in 1991-92, a reduction of 15%.
Description: Of the total funding requested for population and health, $13,047,000 is planned for population activities and $6,019,000 is planned for health activities. USAID focuses on promoting people's use of preventive actions, such as immunization and family planning, promotive actions such as prenatal care and safe childbearing, curative actions such as oral rehydration therapy for diarrhea and treatment of acute respiratory infections, and development of the sustainable systems that will make sure people can promote their own health in their homes and communities and avail themselves of quality services through the health system. Via seven mutually reinforcing activities, in FY 1997, USAID will continue to support U.S. and local NGOs and Peruvian public-sector institutions in effortsto: (1) strengthen the quality of basic health care services, such as immunization, family planning and related maternal and child health services; (2) extend the coverage of, and increase the use of, these services by population groups in which mortality and fertility have remained high; (3) decrease dependence on donated contraceptives through social marketing programs; (4) promote long-term sustainability by strengthening local organizations that deliver health services, including their ability to report and diagnose emerging diseases; and (5) test new models of service delivery.
Host Country and Other Donors: USAID coordinates actively with other donors in Peru. The World Bank finances a health and nutrition project that operates in regions complementary to those of USAID. The IDB has a health project that strengthens national systems, while USAID investments focus on decentralized systems key to service delivery. UNICEF supports micronutrient interventions in iodine deficiency, while USAID works actively in iron deficiency and is hoping to step up its activities in vitamin A deficiency. The World Health Organization and Pan American Health Organization provide focused technical assistance in policy and service delivery. The United Nations Population Fund and the Overseas Development Administration (the United Kingdom bilateral agency) donate complementary contraceptives and fund small-scale activities in population research, management and service delivery. USAID also is engaged in dynamic discussions with additional bilateral donors, notably Japan and the Netherlands, which may yield future collaborative funding relationships. Estimated host country counterpart contributions for the life of the strategic objective are $68,760,000.
Beneficiaries: Children under age five number 2.9 million, or 13% of the Peruvian population. Women of child-bearing age total 6.2 million and represent 27% of the national population. In sum, four of every 10 Peruvians fall in one of these two target groups. Some USAID projects have a regional focus, complementing the work of other donors. The population in these priority regions is seven million, or roughly one-third of the total population.
Principal Contractors, Grantees, or Agencies: USAID implements activities through several U.S. firms, U.S.-based private and voluntary and other not-for-profit organizations, and U.S. universities, as well as Peruvian NGOs, universities and the Peruvian Ministry of Health.
Major Results Indicators:
Baseline Target
Infant mortality per 1,000 live births 73 (1986) 40(2000)
Mortality per 1,000 children under 5 years 106 (1986) 60(2000)
Percentage of infants fully vaccinated by age 1 47%(1986) 95%(2000)
Total fertility rate 4.1 (1986) 3.0 (2000)
Couple-years of protection 600,000 (1993) 1,823,000 (2000)
PROGRAM: PERU
TITLE AND NUMBER: Improved Environmental Conditions in Targeted Sectors, 527-SO04
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997: $4,010,000 (DA)
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2001
Purpose: To improve protection of the natural resource base, fragile ecosystems, and biodiversity conservation, and to reduce urban and industrial pollution. This will be achieved through support for participatory policy debate, policy research and analysis, information dissemination and training, and development of innovative sustainable technologies in the green, brown and blue areas of the environment.
Background: Peru has 81% of the total number of life zones on earth. Its sustainable growth is hampered by widespread poverty that exerts destructive pressure over the country´s resources. Lack of adequate environmental policies and environmental awareness exacerbates dealing effectively with environment problems.
USAID has developed an environmental strategy which identifies and prioritized the major environmental problems facing Peru. USAID's strategy focuses on: (1) improving the legal, policy, regulatory and normative environment and natural resource (ENR) framework, (2) pollution prevention in selected peri-urban and industrial settings, and (3) protecting natural resources including biological diversity and fragile eco-systems. USAID activities supporting this strategic objective include the Sustainable Environment and Natural Resources Management (SENREM), the Employment and Natural Resource Sustainability (ENRS), and the Integrated Pest Management (IPM) projects.
USAID Role and Achievements to Date: Ongoing activities contributed to improving environmental conditions in Peru. Under ENRS, 1,200 families living in the Pacaya-Samiria Reserve benefit by agroforestry and agriculture employment opportunities. Four community fishing units, ten poultry and two turtle management activities are now operating. Under IPM, 3,800 families in 114 extremely poor mountain towns, learned pest biology, field recognition, and non-chemical pest control procedures that resulted in reductions in physical losses between 5% and 18% in their recent potato harvests. USAID's support for the GOP's newly-created National Environmental Council (CONAM) has been instrumental in establishing its role as the leading environmental policy agency in Peru.
Four innovative activities, approved under the Environmental Initiative for the Americas (EIA), were launched in FY 1996. These leading-edge, pilot activities in mining and fishmeal industry pollution prevention, solid waste management in peri-urban areas, and comparative risk assessment address some of the most difficult and thorny environmental issues in Peru today. At the same time these activities have the greatest potential for replication and long-term, positive environmental impacts.
Description: Under this strategic objective, the institutional capabilities of the GOP and private sector organizations will be strengthened. This will result in mobilizing public support for environmental change, sound policies and effective legislation, and cost-effective practices. For example, CONAM will be provided with technical assistance to solidify Peru's environmental and natural resource legal and policy framework. GOP sectoral environmental units will be trained in the management of public participation processes and assessment methodologies. Research institutions will undertake analysis and outreach on environmental law and policy. National social and economic statistics will be published in an annual State of the Environment Report focusing on environmental trend analysis. Sector-specific (mining, fishing, and manufacturing) sustainable industry seminars will discuss pollution prevention, incentives, and how private voluntary organization (PVOs) can support private industry initiatives. Municipalities will be trained in local environmental condition monitoring, using low-cost techniques.
Building on the Environmental Initiative for the American pilot activities, private sector organizations will be supported to develop successful and innovative practices in biodiversity and natural resources conservation, the reduction of urban and industrial pollution, and improved water management. Results-oriented, sustainable activities with the strong likelihood of replication throughout Peru will receive support. This will promote increased other donor investments to support sustainable environmental programs.
Host Country and Other Donors: USAID assistance is relatively limited, but catalytic in nature, which affords an opportunity to provide enlightened leadership in the improvement of environmental conditions in targeted sectors. Other donors are investing resources mainly in environmental health, conservation and reforestation areas, which will improve environmental conditions in Peru. The World Bank is providing a $100 million loan to rehabilitate Lima's water system, funding a wastewater treatment feasibility study which will lead to a $100 million loan to protect Lima's coastline; and channeling $5 million through the Global Environment Fund to the National Fund for Protected Areas. The IDB has approved a $140 million project for the improvement of the basic sanitation services of 36 provincial water and sewerage firms, $1.4 million to develop options for the containment of mining-related environmental damage in the Mantaro Valley, and $1.8 million to assist CONAM in the development of a master plan for the national environmental system and a pilot environmental data system in the Grau Region. The German Cooperation Agency is helping the GOP's National Institute of Natural Resources develop a master plan for protected areas. Other donor assistance includes United Nations Development Program support of Agenda 21, Food and Agriculture Organization aid for reforestation and rural education, the European Union and the Governments of the Netherlands and Switzerland aid for forestry, protected areas, and bio-diversity and, finally, the Governments of Canada and Finland assistance for small debt swaps. The estimated host country contribution for this strategic objective is $3,680,000.
Beneficiaries: Large segments of Peruvian population will ultimately benefit from improved environmental conditions resulting from an improved environmental and natural resource legal, regulatory and policy framework; private sector participation and validated innovative technologies. However, the pilot activities will directly benefit low-income peri-urban and rural populations where these programs will be implemented.
Principal Contractors, Grantees, or Agencies: Principal implementor of SENREM activity is the GOP´s National Environmental Council. In addition, U.S. and local-based NGOs and contractors will be selected in FY 1996. Other activities are being implemented by The Nature Conservancy and the Peruvian Foundation for Nature Conservation, Conservation International, CARE, and the Potato International Center.
Major Results Indicators: (baselines and targets to be determined)
% of public that perceives effective actions have been taken to improve ENR conditions
% of Peru's protected areas operating under management plans
% of peri-urban areas with solid waste collection systems with regular service
% of industrial plants that have adopted pollution prevention measures
Purpose: To promote an adequate social and economic environment in target coca-growing and out-migration areas in order to reduce coca cultivation pursuant to the GOP National Drug Prevention and Control Plan.
Background: The Alternative Development special objective directly supports the U.S. Government counternarcotics strategy, a major U.S. foreign policy objective which aims to reduce the flow of illicit drugs into the United States. This is a specialized activity with broad-based objectives, which includes all sectors involved in sustainable development. Alternative Development is one of two major components of the U.S. counternarcotics strategy. The other component is law enforcement. Without effective law enforcement activities, alternative development activities, by themselves, cannot achieve the above purpose.
There are two major activities included under this special objective: the Alternative Development project, which started in mid-1995, and the Narcotics Education and Community Initiative project. USAID has coordinated its incomes and employment generation, health and nutrition, local government development, environment, and food aid programs, working in the same geographic areas as the Alternative Development project to build on synergies and increase their impact. The Narcotics Education and Community Initiative project promotes drug awareness in both rural and urban areas and supports community initiatives in resolving problems related to illegal drug usage. It plays an important part in helping to create receptive attitudes to the negative effects caused by the illegal drug industry. Because of the political nature of this objective, its success or failure will depend upon the continued support of both the Peruvian and U.S. governments.
USAID Role and Achievements to Date: From 1982 to 1995, USAID worked in various forms of alternative development in the Huallaga Valley. The current strategy was developed by drawing from lessons learned from previous experiences and combining this with the evolving U.S. and Peruvian counternarcotics strategies into a sustainable development activity which will help to reduce coca production in targeted areas by promoting licit economic and social development.
The strategy was pilot-tested in Ponaza Valley, and in an 18-month period (June 1992-December 1993), reduced coca production by more than 50% (1,500 hectares to 700 hectares) by providing community-level, sustainable development activities. Through drug-awareness activities under the NECI project, over 50% of the population recognizes drugs as one of Peru's major problems. USAID has consistently played a donor leadership role in alternative development, and its strategy is increasingly recognized by the GOP and other donors as a viable activity promoting development and reducing coca production.
Description: Alternative development activities are being implemented in small watersheds in five major coca-growing areas, namely Central Huallaga, Upper Huallaga, Aguaytia, Pichis Palcazu and the Apurimac River Valley. Communities sign agreements with their local governments to voluntarily reduce coca production in exchange for economic and social development activities. These agreements are monitored to ensure compliance and are expected to reduce coca production in target areas by 50% by the end of the project (FY 2000). The project has three major components: employment and income-generation; essential services and community development; and environmental protection and awareness. To ensure sustainability, the project will promote private sector investment,local government strengthening and community participation in the planning process, and implementation and maintenance of community-level activities. The NECI project is working with rural communities where the Alternative Development project is being implemented to help educate people against the use of illegal drugs and the damage which narco-trafficking is causing to the
environment. In addition, the NECI project provide drug education to urban areas and helps communities solve the problem of street children who are major users of illegal drugs.
Host Country and Other Donors: Among the GOP and other donors, the United States is regarded as the leader in alternative development, both in terms of strategy and in funding. During the past year, USAID has established relationships with the United Nations Drug Control Program and with the Governments of Japan and Germany, and is coordinating with these organizations in the planning and implementation of alternative development activities. Contact has been made with the Governments of Spain, the Netherlands and Great Britain, as well as with the World Bank and Inter-American Development Bank, with the goal of developing support and coordination of activities. To date, the GOP has identified alternative development as a high- priority activity and has given its full support, through actions and funding, to activity implementation. It is directly contributing 10% of the Alternative Development project costs and is contributing an unspecified amount in support costs, such as providing security to personnel working in the target areas. The GOP also is actively implementing the law enforcement component of the counternarcotics strategy and continues to score major successes against narco-traffickers, a key ingredient toward achieving the purpose of this special objective. The estimated host country counterpart contribution for the this strategic objective is $14,000,000.
Beneficiaries: The direct beneficiaries of alternative development activities are those individuals who live in the project target areas. Approximately 30,000 coca farm families will benefit as well as an additional 20,000 families who live in the geographic area but are not actively involved in coca leaf production. Secondary beneficiaries will include the people who live in the larger geographic areas where the target areas are located. It is estimated that this will include at least another 50,000 families. They will benefit from improved security, better physical infrastructure and more responsive local governments.
Principal Contractors, Grantees, or Agencies: The National Development Institute, which is a part of the GOP Ministry of the Presidency, has the overall implementation responsibility of the Alternative Development project activities. Primary implementors include local governments, communities, women's clubs, producers associations and NGOs, which will be selected during 1996. A U.S. institution, Peruvian institution, or a combination of both will be selected during the third quarter of FY 1996 and will provide training and technical assistance. A Peruvian NGO, the Center for Drug Education and Information (CEDRO) is implementing the NECI project.
Major Results Indicators:
Baseline Target
Coca production in
target areas (number of hectares) To be determined (1996) TBD (2001)
Hectares devoted to licit crops 44,064 (1993) 63,208 (2000)
Licit jobs created -- 9,000 (2000)