Rural Development and Poverty Reduction in Peruvian Sierra and Selva

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The persistent rural poverty in the High Andes (Sierra) and Amazon Rainforest (Selva) is one of Peru’s most pressing social, political and economic problems; and one of the most complex agricultural problems in most Andean countries. The Peruvian Sierra and Selva are regions of great geographical, cultural, and ethnic heterogeneity. However, both present a challenge in rural development, accounting for the country’s largest proportion of people living in poverty. Eighty one percent of the rural population of the Sierra is living in poverty and 57% in extreme poverty. The situation is similar in the Selva. Together, these two ecoregions account for more than 30% of Peru’s population and 68% of its people in extreme poverty.

The project seeks to assist the Peruvian government and international donors in the task of significantly reducing the problem of rural poverty in the Sierra and Selva. The project consists of a framework for developing the information basis necessary to support a strategy of poverty reduction and an implementation workplan.

The project was launched in early 2005, as part of the larger program on Institutions and Infrastructure for Market Development. It is jointly managed by the Development Strategy and Governance (DSG) and the Markets, Trade and Infrastructure (MTI) divisions.

The project is funded by the Inter-American Development Bank.

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