Poverty and Social Developments in Peru, 1994-97

The report contains some good news and some disappointing news.

The good news is that social welfare improved over these years.

Among the disappointments is that economic growth and government programs have not been distributed equally for everyone.

In Peru, the poverty rate declined by several percentage points.

Severe poverty also declined, from about 19 to 15 percent.

School attendance rose slightly, literacy rates increased from 87 to 90 percent, and the population is healthier.

These increases are attributable to the favorable overall economic environment.

However, there remain disparities, some of which were increased by the unequal distribution.

These disparities are between genders and among different regions.

While the cities have benefited greatly by government programs, outlying rural areas have not.

Factors that prevented improvement were household size and availability of basic services.

The report provides measuring tools for policymakers to assess the efficacy of programs and makes some broad recommendations to increase their effectiveness.