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PROGRAMME FOR COUNTRY PARTNERSHIP

PERU

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UNIDO’s ISID Newsletter

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Introducing Peru

Peru is now classified by the World Bank as an upper-middle-income economy, following two decades of remarkable economic growth. This can largely be attributed to Peru’s sound macroeconomic policies and economic openness, resulting in renewed investor confidence and improved infrastructure to support Peru’s competitiveness and productivity growth.

Continuous efforts to improve governance structures, empower institutions and foster social inclusion have led to growing political stability and earned Peru a high rank on the Word Bank’s 2017 Ease of Doing Business (58th out of 190 countries). Furthermore, Peru is considered one of the most open economies in South America, having engaged in numerous multilateral agreements, including Pacific Alliance - APEC, Trans-Pacific Partnership Agreement, and numerous bilateral agreements with the EU, China and the United States of America, among others.

Peru's continuing socio-economic progress relies on promoting national quality infrastructure and innovation systems to increase competitiveness, as well as addressing regional inequalities and driving the transition of the informal economy to formality. With strong government support and solid regulatory policies, Peru is in a favourable position; however, institutional challenges must be addressed to ensure that productivity growth results in social, environmental and economic benefits for the nation as a whole.

PCP Peru

Fostering modern, competitive and inclusive industry in Peru

In December 2015, the Government of Peru and UNIDO began developing a holistic programme to accelerate inclusive and sustainable industrialization in Peru. The Programme for Country Partnership for Peru (PCP Peru) seeks to facilitate the mobilization of partners, expertise and resources to help advance modern, competitive and inclusive industry in Peru in line with the national development strategy, Plan Bicentenario: El Perú hacia el 2021 (Plan 2021). 

The PCP rests on a multi-stakeholder partnership between development partners, UN agencies, financial institutions and the business sector, under the overall leadership of the Government of Peru.

The PCP Peru implementation phase started in January 2018 with several technical projects launched within the programme’s priority areas.  PCP Peru focuses on four main areas: (i) quality and innovation; (ii) value chain and enterprise development; (iii) sustainable industrial parks and zones; and (iv) industrial resource and energy efficiency and renewable energy. The programme also supports cross-cutting areas such as policy development and gender mainstreaming.

Through the PCP, UNIDO provides advisory services to the government on industry-related issues, delivers  multidisciplinary technical assistance, and facilitates overall coordination and the convening of partners. The various technical projects and programmes are implemented by UNIDO and other development partners, and coordinated through national governing bodies.

NATIONAL DEVELOPMENT GOALS

PCP Peru supports the following national targets from the Plan 2021, inter alia:

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PRIORITY AREAS

OUTLOOK FOR 2019

In 2019, UNIDO will support the government in initiating and strengthening the Partner Donor Working Group. The latter will be responsible for mobilizing funds, aligning activities and interests of different donors, and identifying and approving new projects, in close cooperation with the private and financial sectors.

Additionally, UNIDO will focus on enhancing national PCP monitoring and coordination capacities, finalizing and launching pipeline projects, and strengthening the inter-linkages between PCP projects and the programme’s overall support of the country’s goal of OECD membership.

An International Industrial Parks Conference will be organized in Peru in June  2019 to promote dialogue and the exchange of international experiences on industrial parks as instruments for fostering inclusive and sustainable industrialization.

COORDINATION STRUCTURE

  1. National Advisory Board

    The Ministry of Production (PRODUCE) established a working group under the Multi-sectoral Commission for Productive Diversification to take on the strategic role of the PCP Advisory Board.

    The Board is composed of: the Ministry of Production, the Council of Ministers, the Ministry of Economy and Finance, the Ministry of Foreign Trade and Tourism, the Ministry of Agriculture and Irrigation, the Ministry of Energy and Mines, the Ministry of Transport and Communications, the National Confederation of Private Business Institutions, National Association of Industries (SNI), the Lima Chamber of Commerce (CCL), and the Exporters Association (ADEX).

  2. Partner and Donor Working Group (PDWG): Under the auspices of the Ministry of Economy and Finance, the Ministry of Production and the Ministry of Foreign Affairs, the PDWG will serve as the main focal point for coordination with bilateral and multilateral partners, including financial institutions, in resource mobilization and funds allocation for the PCP.

    It will include representatives from public institutions, partner and donor field offices, private sector associations, as well as financial establishments.

    UNIDO will act as a technical advisor to the PDWG to facilitate coordination and ensure complementarities between the various donor and partner interventions.

  3. UNIDO Secretariat: UNIDO has a PCP Peru technical team at its Vienna headquarters to support overall coordination and implementation of the programme.

PARTNERS

Main partners of PCP Peru include, among others:

National public sector - Ministry of Production, Ministry of Economy and Finance, Ministry of Energy and Mines, Ministry of Foreign Trade and Tourism, Ministry of Environment, Ministry of Foreign Affairs, National Finance Corporation (COFIDE)

National private sector - National Association of Industries (SNI), National Council for the Development of SMEs (CODEPYME), Lima.s Chamber of Commerce (CCL)

Financial institutions - Inter-American Development Bank, World Bank - International Finance Corporation, Development Bank of Latin America (CAF), Global Environment Facility

Multilateral - European Union, Organisation for Economic Co-operation and Development (OECD)

Bilateral - Austria, China, Germany (GIZ), Republic of Korea, Japan, Spain, Switzerland (SECO)

UN System - Food and Agriculture Organization (FAO), International Labour Organization (ILO), United Nations Development Programme (UNDP), United Nations Office on Drugs and Crime (UNODC)

DOCUMENTS

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