Poverty in Peru

Despite Peru’s economic performance being among the best in Latin America poverty remains high and widespread. Peru had the fastest growing economy in the region in 2002 but unemployment was still very high and poverty reduction strategies have not had sustainable results. Peru’s poverty levels are above those of Argentina and Brazil based on US$2/day poverty line.

Crecer (Grow) is the latest government initiative which focuses on child malnutrition.

25 percent of children under five years have stunted growth in relation to their age and this rises to 66 percent in the seven poorest regions. The aim is to reduce the average to 20 percent by 2011.

Almost half the population is poor, significantly higher in the rural areas, and 20 percent are classed as extremely poor. In the urban areas poverty is the most unequal.

More than 39 percent of the total population and two thirds of the rural population in Peru live below the poverty line.

Inequalities in human development can be seen between urban and rural areas, Spanish and non-Spanish speakers and across the climate zones. Most of the extreme poor live in rural areas in the highlands and the rural jungles and have Quechua, Aymara and other languages as their native tongue rather than Spanish. They have fewer opportunities to progress through life due to the obvious discrimination caused by language barriers.

Despite National trends showing a reduction in child mortality and an increase in school enrolment since the mid 1990s chronic rates of under – nutrition prevail in rural areas. Children’s growth and development are affected by poor nutrition. Despite progress in access to services for the poor, disparities between urban and rural areas and across different regions mortality remains high. A quarter of the population has no access to health services despite free health care since 2002.

Children are the most vulnerable and unprotected. Of the 3.8 million people living in extreme poverty 2.1 million are children. Of the 10.2 million under 18 population 6.5 million live below the poverty line. Poverty remains high and the proportion of children who live in poverty is much higher than figures for the population as a whole often indicates.

Socio – economic disparities and exclusion continue to affect children and adolescents who are not benefitting from the economic growth. Enrolment for school declines with age due to the expense of keeping a child in school. Child labor is a factor here as nearly 90 percent of children help out at home or work on the family farm.

Levels of poverty, mortality rates and malnourishment among indigenous groups are twice as high as national averages. Peru has one of the highest levels of income inequality and the gap between the rich and poor is widening.