Peru Cooperation for democracy, climate action and resource conservation
Great progress has been made in lifting people out of poverty. In 2006, almost half the population was living below the national poverty line. Today only around one in five people count as poor.
However, there are stark social and regional differences. Whilst, in 2014, the poverty ratio in urban areas was 15 per cent, in rural regions it was as high as 46 per cent. Large numbers of people are often still excluded from the positive developments that have taken place. Moreover, the state’s weak presence and capacity in remote regions is a key challenge for the country’s sustainable development.
Natural resources as a basis for economic success
Economic growth is largely based on exploiting the country’s natural and mineral resources. Conflicts between different population groups and even with the state over the use of resources are a regular occurrence.
Peru has the fourth biggest area of tropical forests on earth and is one of the world’s most biodiverse countries. However, its rapid economic development is also contributing to the destruction of these natural assets. Logging, slash-and-burn cultivation and illegal mining in particular are threatening to destroy parts of the Amazon rainforest.
Germany and Peru have a long, shared history of development cooperation. Peru has traditionally been a focus of German development cooperation in Latin America. German-Peruvian cooperation is fully aligned with the development goals of the 2030 Agenda for Sustainable Development. The focus is on managing natural resources and protecting global public goods in times of climate change, environmental and climate protection in cities, and strengthening democracy, civil society and the rule of law.
German development cooperation with Peru
Peru and Germany share a long history of successful cooperation. In the 2015/2016 commitment period, Germany pledged 244 million euros in new funds to the Peruvian government. Of this sum, 215 million euros was allocated to Financial cooperation and 29 million euros to Technical Cooperation. In view of Peru’s economic strength, the commitments were primarily in the form of low-interest loans.
Development cooperation between Germany and Peru is aligned with the 2030 Agenda and focuses on the following three priority areas:
- environmental policy and protection and sustainable use of natural resources
- sustainable urban development in times of climate change
- democracy, civil society and public administration.
In addition, Germany is also providing development assistance by supporting various regional and sectoral projects and programmes in a large number of areas, including mining and illicit financial flows. Moreover, Germany is promoting various collaborative initiatives with private executing agencies, political foundations and businesses. In triangular cooperation initiatives, Peru is able to pass on its experience from German-Peruvian cooperation to other developing countries.
Within the German government, activities are closely coordinated with the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, which is also extensively involved in Peru within the framework of the International Climate Initiative.