View of Lima

Social situation Success in reducing poverty but social inequality remains high

In Peru, wealth and income are very unevenly distributed. A large number of Peruvians still depend on subsistence farming or on poorly paid jobs in the informal sector for a living.

The declared goal of the government is to reduce poverty and expand social policies. At the same time, however, the government wants to continue its current economic policy, which is based on strict budget discipline.

Strong economic growth has increased the level of public revenue in Peru. The government, in turn, has committed significantly more resources to social programmes. In October 2011, a ministry just for social affairs (Ministerio de Desarrollo e Inclusión Social, MIDIS) was established with a view to mainstreaming social policies across all sectors and improving their effectiveness.