Investing in Human Capital

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The Investing in Human Capital Development Policy Loan (DPL) aims to support the Government of Peru (GoP) in strengthening sectoral strategies to develop effective policies for human capital accumulation. The GoP - an early adopter of the World Bank’s Human Capital Project is committed to elevating policy dialogue around investments in human capital. By coordinating the efforts of multiple agencies, this DPL will support the GoP in its ‘whole-of-government’ approach to strengthening human capital endowments of the next generation across all regions, with a special emphasis on targeting vulnerable populations. The supported policy and institutional reforms are among the most critical challenges facing Peru in its quest for long-term human capital development. By focusing on complementary and mutually reinforcing reforms led by the Ministry of Development and Social Inclusion (Ministerio de Desarrollo e Inclusion Social, MIDIS) and the Ministry of Education (Ministerio de Educación, MINEDU), which aim to improve the quality of early childhood development (ECD) and basic education through better delivery systems, this operation would help Peru increase human capital levels in the long term and build the resilience to shocks affecting human capital accumulation. The operation builds on past and current interventions supported by the World Bank and other development partners that have assisted the Peruvian authorities in tackling some of the country’s most pressing human development challenges. The combination of support from the World Bank, other development partners, and the GoP’s own investments aims to improve resilience of vulnerable households to different types of shocks, prepare children to arrive at school ready to learn, and ensure that they are taught by well-trained, adequately supported teachers. The prior actions supported by this DPL in concert with medium-term commitments by the GoP to continue instituting reforms in each of the respective policy areas would put Peru on a path for increased human capital accumulation in the medium and long run.