Summary Peru: Country Program Evaluation for the World Bank Group, 2003–09 In FY2003–09, the World Bank Group (WBG) played an active role in Peru, providing US$3.9 billion in new International Bank for Reconstruction and Development (IBRD) lending and International Finance Corporation (IFC) financing, as well as a range of nonlending services. The WBG supported the three pillars of the government’s poverty reduction strategy, including: (i) more inclusive economic growth; (ii) enhanced human development; and (iii) strengthened public institutions. Over the review period, there was a convergence of views on the development agenda between the WBG and the government, which facilitated relevant WBG engagement. The WBG supported economic growth by helping improve fiscal management, developing infrastructure, and encouraging private investment in emerging sectors. Challenges remain, however, in making growth more inclusive, with differential poverty reduction across the country. In the social sectors, IBRD helped realize progress in difficult secondgeneration reforms, although achievements in some areas fell short of objectives. The WBG made an effective contribution in strengthening public financial management, although results in other areas of public sector management were modest. Consistent government commitment and effective management of the reform agenda underpinned positive WBG contributions. The positive outcomes of WBG support also reflected, among other things, the WBG’s long-standing policy dialogue, maintenance of its reputation as a provider of high-quality services, its strong intellectual contributions, and its consistent dialogue with civil society.
The Independent Evaluation Group (IEG) recommends that the WBG: (i) tailor its strategy to support long-term integration of Peru’s three distinct regions; (ii) seek opportunities to support large-scale infrastructure development; (iii) develop a more strategic approach to helping improve public sector management; (iv) seek further innovations in IBRD instruments, given declining demand for financial resources; (v) seek to support a strategic planning function in Peru; (vi) build a strategic partnership with development partners providing concessional finance in the social sectors; (vii) develop a strategic focus for IFC around employment-generating industries in xviii |
emerging sectors; (viii) maintain IFC’s additionality by supporting lower-tier and more regionally dispersed private companies; and (ix) leverage the field capacity of IBRD and IFC to enhance the Multilateral Investment Guarantee Agency’s (MIGA’s) marketing and risk assessment functions.
Country Background Peru has substantial natural assets that offer strong economic growth potential. Peru is highly endowed with natural resources. It is among the largest producers of
Peru: Country Program Evaluation for the World Bank Group, 2003–09