Peru: A Development Overview

Several prominent civilizations in Peru made advancements in irrigation, art, architecture, and centrally-directed government before the famed Incas ruled from the 12th to 16th century. The architectural and cultural vestiges of the Incas as well as their dramatic conquest by Francisco Pizarro, however, became the basis of international representations. After achieving independence from Spain in 1821, Peru was characterized by political instability and many brief governments, often in oligarchic and dictatorial form. In 1968, General Juan Velasco’s nationalistic movement championed industrialization, agrarian reform and the elimination of foreign capital. Velasco’s government had mixed results – with initial benefits in land reform, but negative results from overspending and overhauling Peruvian social structures. The following governments had little success with addressing these changes, and the return to democracy in the 1980s was accompanied by increased debt and hyperinflation, as well as heightened subversive activity by the radical Shining Path movement – a communist party championing Maoist principles.

It was in this context that Alberto Fujimori was elected in 1990, giving way to a ten year government characterized by corruption and human rights abuses. While Fujimori originally reversed Peru’s economic collapse by instituting privatization, cutting spending and promoting foreign investment, the economy stagnated in 1997. Meanwhile, Fujimori disbanded congress, dominated the judiciary system and eliminated political opposition, consequently weakening institutions and creating political turmoil. From 1997 to 2001, the amount of Peruvians living in poverty went up to 54.8%, with poverty rates especially high among the indigenous population in the highlands. The reasons for the economic issues were varied – including delays implementing reforms, capital flight due to international financial crises, falling export prices, and political crisis.

While the country is now much more stable and safe, almost 20 percent of the people still live in extreme poverty – a figure that has not changed in nearly 2 decades. The impact of poverty is most prominent in the rate of maternal mortality, which is one of the highest in Latin America. Malnutrition is another severe problem, worsening community issues that most affect child development, economic growth, and equality. With a quarter of the population lacking any access to health care, communities are unable to solve basic problems that limit proper development.

Today, Peru’s population is approaching 28 million, and the many slums surrounding Lima continue to swell with migrants from the rest of the country. Many families migrated in hopes of raising their socioeconomic status and left behind their previous farming experience and agricultural knowledge. This created an extremely large, marginally poor urban sector. Puno, one of the poorest communities in Peru and the city where FSD is located, has also experienced increased migration. The infrastructure of the community that meets basic human needs – health care, water, and waste disposal services – is inadequate in the face of this population surge.

Population growth is also takes a toll on natural resources, with the sustainability of Lake Titicaca – on which Puno is located – becoming an increasing issue. Many migrants end up in the informal labor sector and low educational achievement creates a poverty trap for the migrant families. After two decades of violence, division, and a lack of social development, communities in and around Puno exhibit the resulting effects in myriad of ways. These include severe deficiencies in skilled labor, economic diversity, education, proper health and social programs to support marginalized peoples.

Puno sits on the shores of the Lake Titicaca in southern Peru. This town of about 100,000 people is located in the Andes Mountains at about 12,000 feet in altitude. Winter comes in the months of June-August and while the days can be sunny and mild, it may fall below freezing during the nights. As a base for visiting the islands of Lake Titicaca as well being on the route to Bolivia, Puno has decent infrastructure that is unusual for a town this size. Many restaurants and internet cafes line the streets and there are many opportunities for different types of tourist activities.

FSD works with numerous local organizations in the Puno region to address urban and rural issues that impede sustainable development and empower local community members to mobilize solutions. Being one of the poorest areas of Peru, Puno necessitates much grassroots efforts to ensure the health, rights, and economic opportunities for its people while preserving the extreme beauty of its location amongst the mountains and Lake Titicaca.

For more about subject-specific development issues and internship/volunteer opportunities in Peru, click on the links below:

Micro-enterprise/Microfinance ▪ Environment ▪ Health ▪ Youth and Education

Women's Empowerment ▪ Community Development ▪ Human Rights