Peru

The Context

Peru faces a complex socio-political crisis following the ousting of its former leader. Moreover, Peru saw the worst drop in GDP in the Latin American and Caribbean region following the COVID-19 crisis.

Poverty increased by a third in 2022, while half of the population is food insecure, particularly in rural areas. Lack of opportunities for rural people has caused mass migration to urban centres. Today, four in five Peruvians reside in and around urban areas.

Rural development is constrained by limited access to markets and financial services, fragmented land ownership, limited cooperation, absence of public goods and services, and a lack of appropriate institutions.

Agriculture makes up an important share of the economy, while tackling food insecurity and promoting rural development. Some of the primary agricultural products cultivated in Peru include coffee, potatoes, quinoa and avocados.

The Strategy

IFAD supports small-scale farmers in Peru's poorest regions by addressing major challenges related to natural resources, technical assistance, financial services and production management.

Key activities include:

• increasing small-scale producers' resilience and productivity through diversified and modern production and food systems;

• enhancing climate-sensitive resource management;

• strengthening institutions for rural and agricultural development;

• working with the private sector to improve smallholders' access to markets, technical assistance and financial services;

• promoting knowledge exchange with national agencies and other partners;

• fostering women's economic empowerment; and

• promoting the conservation of traditional knowledge.

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