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Strengthening in Central Highlands, Republic of Peru The Study on the Program of Rural Development for Poor Peasants and Local Capacity MINISTRY OF AGRICULTURE REGIONALMINISTRY OF GOVERNMENT AGRICULTURE OF AYACUCHO REGIONAL GOVERNMENT OF AYACUCHO THE STUDY THE ONSTUDY THE PROGRAM OF RURALON DEVELOPMENT FOR POORTHE PEASANTS PROGRAM AND OF LOCAL RURAL CAPACITY DEVELOPMENT STRENGTHENING FOR POOR PEASANTS AND LOCALIN CAPACITY STRENGTHENING CENTRAL INHIGHLANDS CENTRAL HIGHLANDS REPUBLIC OF PERU REPUBLIC OF PERU FINAL REPORT FINAL REPORT AUGUST 2010 Final Report AUGUST 2010 August 2010 JAPAN INTERNATIONAL COOPERATION AGENCY JAPAN INTERNATIONAL COOPERATION AGENCY NIPPON KOEI CO., LTD. KRINIPPON INTERNATIONAL KOEI CO., LTD. CORP. NIPPON KOEIKRI LATIN INTERNATIONAL AMERICA-CARIBBEAN CORP. CO., LTD. NIPPON KOEI LATIN AMERICA-CARIBBEAN CO., LTD. 㪩㪛㩷 㪩㪛㩷㪡㪩㩷 㪈㪇㪄㪇㪋㪎㩷㪡㪩㩷 RD 㪈㪇㪄㪇㪋㪎㩷JR 10 - 047 Strengthening in Central Highlands, Republic of Peru The Study on the Program of Rural Development for Poor Peasants and Local Capacity MINISTRY OF AGRICULTURE REGIONALMINISTRY OF GOVERNMENT AGRICULTURE OF AYACUCHO REGIONAL GOVERNMENT OF AYACUCHO THE STUDY THE ONSTUDY THE PROGRAM OF RURALON DEVELOPMENT FOR POORTHE PEASANTS PROGRAM AND OF LOCAL RURAL CAPACITY DEVELOPMENT STRENGTHENING FOR POOR PEASANTS AND LOCALIN CAPACITY STRENGTHENING CENTRAL INHIGHLANDS CENTRAL HIGHLANDS REPUBLIC OF PERU REPUBLIC OF PERU FINAL REPORT FINAL REPORT AUGUST 2010 Final Report AUGUST 2010 August 2010 JAPAN INTERNATIONAL COOPERATION AGENCY JAPAN INTERNATIONAL COOPERATION AGENCY NIPPON KOEI CO., LTD. KRINIPPON INTERNATIONAL KOEI CO., LTD. CORP. NIPPON KOEIKRI LATIN INTERNATIONAL AMERICA-CARIBBEAN CORP. CO., LTD. NIPPON KOEI LATIN AMERICA-CARIBBEAN CO., LTD. 㪩㪛㩷 㪩㪛㩷㪡㪩㩷 㪈㪇㪄㪇㪋㪎㩷㪡㪩㩷 㪈㪇㪄㪇㪋㪎㩷 PREFACE In response to a request from the Government of the Republic of Peru, the Government of Japan decided to conduct a development study on “Program of Rural Development for Poor Peasants and Local Capacity Strengthening in Central Highlands of Peru” and entrusted the study to the Japan International Cooperation Agency (JICA). JICA selected and dispatched a study team headed by Mr. Hitoshi SHIMAZAKI of NIPPON KOEI Co., Ltd. between March, 2009 and July, 2010. The team held discussions with the officials concerned of the Government of the Republic of Peru, and conducted field surveys at the study area. Upon returning to Japan, the team conducted further studies and prepared this final report. I hope that this report will contribute to the promotion of the project and to the enhancement of friendly relationship between our two countries. Finally, I wish to express my sincere appreciation to the officials concerned of the Government of the Republic of Peru for their close cooperation extended to the study. August 2010 Izumi TAKASHIMA, Deputy Vice President, Japan International Cooperation Agency August 31, 2010 Mr. Izumi TAKASHIMA Deputy Vice President Japan International Cooperation Agency Tokyo, JAPAN Dear Sir, Letter of Transmittal We are pleased to submit you herewith the Final Report on the Study on the Program of Rural Development for Poor Peasants and Local Capacity Strengthening in Central Highlands in Peru. The Study aimed to (1) formulate the program of the rural development for the poor peasants and the local capacity strengthening in the central highlands with the purpose of linking the poor peasants with local, regional, and national markets to improve their income, activity and life, and (2) carry out capacity development of Peruvian counterpart personnel in the course of the Study so as to manage and coordinate the implementation of the above program, for Ayacucho Region located at Sierra Area lying at central south of Peru. This report presents all the results obtained from the study activities in Peru and Japan over 18 months from March 2009 to August 2010. Ayacucho Region which is the Study Area, has a higher poverty condition in the Sierra area. The poor people in the region attain 78 % of the total population, out of them 41 % are regarded as extreme poor. In the Sierra area showing natural diversity, the poor peasants are carrying out the agriculture, livestock, inland fishery, etc., but are facing the various problems and constraints such as insufficient production infrastructure, which result in low productivity. Also, they are vulnerable to natural disasters, which is one of reasons of high poverty rate. Taking into due consideration the above, the Master Plan is formulated under the basic idea of “reflection of regional characteristics and effective use of regional resources”, to attain the “mitigation of vulnerability and improvement of livelihood of poor peasants. The Master Plan proposes 34 projects as the livelihood improvement program by region and 5 projects as the vulnerability mitigation program by region. We hope that Ayacucho Region will become the “successful region (advanced region) on measures to poor peasants” by implementing these projects by 2020, target year of the Master Plan. We would like to express our deep appreciation and sincere gratitude to the officials of your Agency, the Ministry of Foreign Affairs, the Ministry of Agriculture, Forestry and Fisheries of Government of Japan for the courtesies and cooperation kindly extended to our team. We also wish to express our hearty appreciation and gratitude to the officials concerned of Peru Office of your Agency, the Embassy of Japan in Peru, the Ministry of Agriculture, the Ministry of Economy and Finance and the Regional Government of Ayacucho for their support and valuable advices in the course of the Study in Peru. Very truly yours Hitoshi SHIMAZAKI Team Leader of JICA Study Team The Study on the Program on Rural Development for Poor Peasants and Local Capacity Strengthening in Central in Peru Ayacucho Region Huanta Province Lima La Mar Province Republic of Peru Huamanga Province Cangallo Province Vilcas Huaman Victor Fajardo Province Province Huanca Sancos Province Sucre Province Lucanas Province Parinacochas Province Paucar del Sara Sara Province Study Area (Ayacucho Region) The Study on The Program of Rural Development for Poor Peasants and Local Capacity Strengthening in Central Highland in Republic of Peru Final Report Table of Contents Location Map Abbreviations Page Chapter 1 Introduction............................................................................................................................1-1 1.1 General.....................................................................................................................................1-1 1.2 Background and Purpose of the Study.....................................................................................1-1 1.3 The Study Area.........................................................................................................................1-2 1.4 Study Team and Counterparts ..................................................................................................1-2 1.5 Work Procedure and Outline....................................................................................................1-3 1.6 Technology Transfer ................................................................................................................1-5 1.7 Steering Committee Meetings..................................................................................................1-6 Chapter 2 National Policies for Poverty Reduction and Decentralization..........................................2-1 2.1 The Peruvian Economy............................................................................................................2-1 2.1.1 Economic Conditions...............................................................................................................2-1 2.1.2 Economic Structure..................................................................................................................2-2 2.1.3 Financial-economic Policy.......................................................................................................2-2 2.2 National Policies ......................................................................................................................2-2 2.2.1 Toledo Government..................................................................................................................2-2 2.2.2 Garcia Government..................................................................................................................2-2 2.3 Poverty Reduction and Social Development Policies..............................................................2-3 2.4 Decentralization and Sub-central Government ........................................................................2-4 2.4.1 Decentralization Process Retrospective ...................................................................................2-4 2.4.2 Administrative Structure of Peru and Regional System...........................................................2-4 2.4.3 Status of Decentralization Process...........................................................................................2-5 2.4.4 Topics of Decentralization Process ..........................................................................................2-6 2.4.5 National System of Public Investment and Decentralization...................................................2-7 2.5 Development Plan of Agriculture Sector .................................................................................2-8 2.5.1 Position of Agriculture Sector in Peruvian Economy ..............................................................2-8
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