Third Results & Accountability (REACT) Programmatic DPL

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The Peru Results and Accountability (REACT) Development Policy Loan (DPL) Program is the third in a planned series of three operations to support the Government of Peru (GoP) in strengthening the accountability framework and improving results in health, nutrition and education. The Peru REACT DPL series is supporting actions in primary education, health and nutrition to define standards and set goals for the outcomes which families should expect for their children. This is coupled with the development of robust monitoring systems which provide up-to-date information on the performance of health posts and schools and individualized data for parents on the health, nutrition and learning status of their children. The operation also supports actions to reduce exclusion, rationalize programs, to improve targeting and to increase the participation of poor communities in budget processes and program monitoring. The REACT DPL series is expected to lead to improved outcomes in second grade literacy (especially in rural schools); increased access to institutional birth services; and increased coverage of individualized growth monitoring and counseling services for children under 24 months of age in areas with a high incidence of chronic malnutrition (stunting), leading to better nutrition outcomes. The GoP has requested Bank financing for three main reasons. First, while Peru has achieved strong growth and poverty reduction in recent years, it still faces a high poverty rate as well as other important development challenges in areas such as infrastructure and human capital formation. Second, this is the third and last operation in a programmatic series agreed with the government under the current CPS and which has been included in the government's financing plan. Third, while global financial markets have improved, there remain uncertainties and risks that the authorities seek to mitigate with further Bank financing. The GoP seeks to strike an appropriate balance between protecting the outstanding results in debt management and maintaining flexibility to respond to a volatile global environment.