Supporting good governance for sustainable regional development

Context

Social inequality is widespread in Peru. Poverty is increasingly concentrated in individual regions. Many of these regions are struggling to compete economically and offer limited employment and income opportunities. At the same time, there has been little progress towards an environmentally and climate-smart circular economy that recycles raw materials. Peru is therefore confronted with the task of promoting climate-smart and socially responsible development of the regional economies.

The government lacks the expertise and coordination mechanisms to support this development. Public investment in the regions is too low to meet the needs of the population.

Objective

The institutional framework for socially just and climate-smart economic development in Peru is improved.

Approach

The project works with the Peruvian Ministry of Economy and Finance (Ministerio de Economía y Finanzas, MEF). It improves coordination between public and private stakeholders, for example, by incorporating regional needs into the planning process. It also supports dialogue with the private sector.

In addition, the project optimises government processes to organise investment projects, for example in agriculture. These processes must place greater emphasis on competitiveness, sustainability and gender equality.

The project implements circular economy pilot projects in the regions, which will be expanded nationally at a later stage.

Project activities take different gender needs into account. At the same time, the project addresses the realities and cultural differences in the individual regions.

Last update: March 2025