PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE Report No.: AB4987 Justice Services Improvement Project II Project Name Public Disclosure Authorized Region LATIN AMERICA AND CARIBBEAN Sector Law and justice (100%) Project ID P110752 Borrower(s) REPUBLIC OF PERU Implementing Agency Judiciary of Peru Av. Paseo de la República s/n, Palacio N 4to Piso, Oficina 444 Lima Peru Tel: (51-1) 719-6300 Fax: (51-1) 427-0292
[email protected] Public Disclosure Authorized Environment Category [ ] A [] B [ X] C [ ] FI [ ] TBD (to be determined) Date PID Prepared September 30, 2010 Date of Appraisal January 21, 2010 Authorization Date of Board Approval Expected November 18, 2010 1. Country and Sector Background Peru has maintained a sound macroeconomic framework and, as a result, has been able to benefit from these policies in the form of high growth and significant poverty reduction. Between 2004- 2008, Peru's GDP grew at an average rate of 7.6% and, by 2008, the year before the onset of the Public Disclosure Authorized economic crisis, it reached 9.8%, among the strongest growth performances in Latin America and the Caribbean. Fast economic growth has been accompanied by poverty reduction and job creation. Poverty declined from 48.6% in 2004 to 34.8% in 2009, a decline of 13.8 percentage points. While inequality remains high, Peru is making progress in addressing it. Economic growth decelerated sharply in 2009, as a result of the global crisis, but remained positive. The World Bank Group’s Country Partnership Strategy (CPS) for 2007-2011 (Report No. 37913- PE) discussed by the Executive Directors on December 19, 2006 outlines three pillars reflecting Peru’s strategy for development: (i) Economic Growth; (ii) Social Development; and (iii) Modernization of the State1.