IADB to provide $469.8 million to finance public, private sector projects in 2011

The Inter-American Development Bank will provide $469.8 million in financing for Peru in 2011 for public and private sector projects, representative Fidel Jaramillo said.

“Peru has experienced a decade of sustainable growth, stability and very significant social progress and the IADB has accompanied this process with a strategy that brings favorable results,” state new agency Andina cited Jaramillo as saying.

Almost $400 million will be provided for public sector projects, while the remainder will be aimed at the private sector, he said, adding that between 2007-2011 the IADB has provided some $2.57 billion to Peru.

The IADB’s strategy in Peru has been to promote development and social inclusion, strengthen its international position and competitiveness and contribute to state reform and improve public management.

“All of the credits surrounding these three pillars have supported the agricultural sector, transportation, improving business climate, science and technology programs, water, market access, competitiveness and tourism,” Jaramillo said.

While Peru still faces numerous challenges, the country’s current economic situation is likely to lead to a decrease in the poverty rate next year, he said.

“The goal to reduce poverty to 30 percent is feasible because this year Peru will have notable growth.” However, “the additional effort required to reduce each point of poverty will be much more, that’s why we think that economic growth alone is not enough.”

In order for the country’s poverty rate to reach 15-25 percent, Peru will need to continue to focus on investments in the public sector.

“We can conclude that it is going to require greater financial, human and management efforts because it is more difficult to reduce the rural poverty levels where it is transmitted generation after generation.”

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