Getting Out of the Middle-Income Trap in Peru: New Partnership for Better Policies

While Peru experienced an unprecedented economic boom from 2004 to 2013, approximately 7 million Peruvians continue to live in poverty. This project will address the problem by assessing and testing public policies that can drive productivity and competitiveness. Gaps persist despite growth Poverty has declined substantially in Peru, but continues to affect 20% of the population. It is primarily concentrated in rural and remote regions. One in four Peruvians lives in these areas, and almost half of them are poor. Economic growth has failed to reduce gaps in opportunities for the country's young citizens, and its rural and indigenous women. This has caused a middle-income trap. The economic slowdown and the downward trend in investment will make the situation worse. Testing policies for change The July 2016 change in government and parliament offers an opportunity to address social gaps. This project will support collaboration among researchers, central and regional governments, and the private sector in Peru. Together, they will assess and test public policies to drive productivity and competitiveness. The goal is to promote innovative economic, social, and environmental policies. The project will also enhance technical and financial collaboration between the 48 research institution members of the Peruvian Consorcio de Investigacio¿n Economica y Social and the National Council for Science and Technology. These organizations are working to develop applied social research and quality data for effective policy interventions at the national and local levels.