PE Social Inclusion DPL

closed

The development objectives of the Social Inclusion of Development Policy Loan Program for Peru are (i) supporting the institutionalization of the stewardship of the social inclusion agenda under Ministry of Women and Social Development (MIDIS); (ii) laying the foundations for improving the inclusiveness and effectiveness of key social programs implemented by MIDIS; and (iii) developing adequate systems and strategies for targeting, monitoring and evaluation, and overall coordination. The First Development Policy Loan (DPL1) (US$45 million) will be the first of a two-part Social Inclusion DPL series that aims at supporting the social inclusion reform agenda of the Government of Peru (GoP). The first phase of the social inclusion reform program, supported by this DPL1, will focus on the establishment of the new Ministry of Development and Social Inclusion (MIDIS) to initiate the social policy reforms under its responsibility. The second phase of the reform, which will focus on the implementation and consolidation of these reforms, is expected to be supported by a second DPL (Social Inclusion DPL2), planned for FY14. The DPL1 is being presented to the Board together with the Social Inclusion Technical Assistance Loan (TAL). The TAL will support the development of the second phase of reforms and, as such, will provide a bridge of technical support between the two DPL operations. Peru has achieved consistent economic growth, declines in poverty and inequality, and improvements in social indicators over the past decade. However, the Government recognizes that many social and income disparities remain pervasive in the country. Despite the prevalence of social programs, they are fragmented and ineffective in providing a coherent and consistent package of support to the poor. The Government has, therefore, announced a Growth with Inclusion plan that mainly aims at: (i) providing equal access to basic services, employment, and social security; and (ii) reducing extreme poverty, with an emphasis on rural poverty. The Government has created MIDIS to spearhead a large part of this agenda with a focus on the reform of social policies and programs.