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Trade Policy and AFT Challenges

powered up within each sub-sector and region. This change implementation stage is not an easy one and calls for coordinated efforts by all public and private actors and, in most cases, the availability of funding for the activities involved. 5.2.4. Access to Competitive Physical Infrastructure

The population centers that are less oriented towards the domestic and foreign markets are the ones that are the most geographically isolated and experience the greatest restrictions to access roads and bridges, energy, water and communications. Most of Peru’s poverty is concentrated in these areas. Major State efforts are required to bring them into the modern age and facilitate competitive access to international markets for their products. Integrating the poorest—particularly from the mountains and the jungle—into the market has been a very difficult task to achieve in a country with such rough geographic features as Peru; however, such integration is essential in order for trade to become a true driving force for development. The high demand for physical infrastructure requires identification, focusing, prioritization, implementation and monitoring efforts aimed at securing effective public investment. From the South American perspective, as already discussed, this integration effort is being driven by the IIRSA mega-project. 5.2.5. Support to the Agricultural and Livestock Sector

As explained above, most of Peru’s agricultural and livestock activity is still precarious and limited, and concentrates most of the population that is missing out on the benefits of globalization. There are structural problems that require a solution through a set of actions to be designed and implemented by the State. Actions identified by the public authorities in charge22 include the following: investment in physical infrastructure—from rural roads, roads to penetrate into the mountains and jungle, and energy and communications interconnection to irrigation infrastructure—is essential; issue and delivery of property title deeds; effective plans for rational water use; budgetary allocations for the implementation of the agricultural policy; design and implementation of programs for transparent and effective agricultural compensation payments; management schemes for adequate import quotas; sanitary and phytosanitary control to eradicate agricultural plagues and animal diseases; technical assistance and training for agricultural and farming producers; credit facilities; promotion of associativity; and promotion of sustainable forestry activities, among others. 5.2.6. Support to the Small- and Medium-sized Enterprise Sector

Even if SME activities are concentrated in urban areas, most SMEs are still missing out on the opportunities presented by globalization. However, it should be noted that, according to the 22

Agricultural Sector: Performance y perspectives, Ministry of Agriculture, September 2004

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mobilizing aid for trade: focus on latin america and the caribbean: proceedings of the regional r...  

this report was prepared by the integration and trade sector (int) as a contribution to the regional meeting on mobilizing aid for trade: la...

mobilizing aid for trade: focus on latin america and the caribbean: proceedings of the regional r...  

this report was prepared by the integration and trade sector (int) as a contribution to the regional meeting on mobilizing aid for trade: la...

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