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impacton Peru'spoor
A largeproportionof Peru'spopulation is concentrated
in themountain areas.
Economic growthin the lastfewyearshasnothadanysubstantia[ effecton reducing
povertyin theruralhightands, wherealmostZopercent of thepoputationlives
belowthepoverty line;it is hopedthattheeconomic downturn asa resultof the
currentglobatcrisiswil[haveanequalty negtigible

LatinAmericancountriesare find- The Peruvianeconomy felt the waskeptat approximately two percent
ing they are lessaffectedby the crisis negative effectsof the worldwide in the yearsup to 2007,but roseto
than other partsof the world (Trivelli, financialcrisisin 2009.CDPhasfallen 6.6 percentin 2008andfellsharplyin
C., Yancari,Y.and De los Ríos,Carlos, drastically:
theyear-on-year rateCDP 2009,when the accumulated rateof
2009),mainlybecause it hascomeat a growth fell from an average11 per- inflationoverthe firstfive monthsof
time when they possess international centin thefirstthreequartersof 2008 theyearwas0.4 percent
reserves and tax revenueswith which to 6.5 percentin the lastquarter,and
to combatit. Thegreatest impactswill to 1.8 percentin the first quarterof ihis economicgrowthwasreflected
befelt bythoselabourmarketslinkedto the currentyear(BancoContinental, in a reductionin povertyfrom4S.Tper-
exportingsectorsandwhereverthe rural' 2009). centin 2005to 39.3percentin 2007,
worldisintricatelyinvolvedin dynamic although theimpactwasslightamong
productmarketsand usesoutsidepro- This blow to the economycomes the ruralhighlandpopulation, which
ductionfactorsandemployment. afteran exceptionalperiodthat drove still hasratescloseto the 70 percent
up the2008CDPto US$127.7billidn, mark.The continuingpovertymeans
afterhavinggrown at an annualrate that rural development iñ highland
AugustoCavassa of 7.7 percentin2006,8.9percentin regionswill be on the agendafor the
Innovaciónparael Desarrollo 2007and9.8 percentin 2008.Percap- coming years,especiallyin view of
Lima,Peru itaearningsincreased from US$2,592 the competitionfor naturalresources in 2005to US$4,457in2008.Inflation betweenagrjculture and mining.

Rural21 - 05/2009
r Possibleimpactsof the crisis tion costs(bought-ininputs)account indicatethat the globalfinancialcri-
for 64 percentof total agricultural siswill not filterdown so easilyto the
The importanceof miningin Peru costs.Accordingto Yancari,Y. (2009), rural sector,where familiesoperate
has led to a number of outcomes,. theeffects of thecrisisin Peruarebeing protectivemechanisms basedon their
whichinclude: felt in fourways: own strategies for diversifying
ingsandsecuring food.Consequently,
r The accumulation of funds from r. Lowerexternaldemand,whichwill the crisismayhavelittledirectimpact
m i n i n g r e n t s a n d r o y a l t i e si n t h e be reflectedin a reductionin non- on the ruralsectorand on the ooorest
h a n d so f l o c a la n d r e g i o n a g
l overn- traditionalexports; families.
ments,which is a key factor in pro- z. Lowerexportprices,affecting
moting localand regionaldevelop- exportsof traditionalproducts
ment. (minerals) andtax revenues; r Agricultural
3. Higher interest ratesdueto the ruralareas
r C h a n g e si n l e g i s l a t i o tnh a t w i l l h a v e lackof liquidityworldwide;
implicationson small-scale crop and 4..Reduced flow of externalcapital Unlikewhat is happeningin other
livestockfarming, biodiversityman- (Yancari,Y.,2OO9). LatinAmericancountries,mostfarm-
agement, eco-farming and food ing landin Perubelongs to smallfam-
security. The fall in demandfor non-tradi- ily farming units,generallyclassified
tional agro-exports will mean lower as "peasanthouseholds". Moreover,
r ln terms of the effects of climate earnings andfewerjobsfor agricultural therearealsothe landsof 5,860peas-
c h a n g e o n a g l o b a l l e v e l ,P e r u i s workers,though it only affectsthose antandnativecommunities who con-
one of the hardest hit countries, producersmost closelyintegratedin trol 40 percentof the total land used
particularlyas regardsthe availabil- productionchains.Lessforeignearn- for cropsand livestock and represent
ity of water, and this could lead to ingsdo not seemto be an important 2.5millionPeruvians, i.e.40percentof
an increasein disputesover natural factor for rural populationsin Peru, the country'sruralpopulation.
res0urce5. particularlybecausemigratoryflows
are mainly internaland, thanksto Agricultureis the principalgenera-
Due to the fall in the orice of min- improvementsin communications, tor of employmentin Peru;it is esti-
erals, the crisis has greatly affected many people have dual residences, matedthat 10 millionindividuals live
exportsof traditionalproducts,causing which may be cushioningthe effects offthelandandtheysupplyfoodto the
r e g i o n a la n d l o c a l g o v e r n m e n te a r n - of job losses.Dualresidence ischarac- country'stownsandcities.At present,
ings to drop. Another visible conse- teristicof manyfarmingfamiliesandis six out of evéryten tonsof food con-
q u e n c ew i l l b e h i g h e rp r i c e so f a g r i c u l - a subjectof nationaldebate. sumedoriginatesfrom smallfarmers
tural inputs,which will affectallfarmers (Oxfam International Annual Report
and particularlyproducersof cropsfor All the aboverelatesto the trading 200812009).Accordingto the 2007
domesticconsumption,where produc- sectorof the economy,which would Population Census, 2.4millionpeople
wereworkingin theagriculturalsector,
constitutinga largeproportionof the

78 percent of Peru'stotal rural

employmentis in the agricultural
sector, a figure only exceededin
LatinAmericaby Bolivia.Agricultural
ü employment in ruralareashasgrown
more in absoluteterms than non-
agrículturalemployment, both in the

Peoplein Peru'srurol highlandshave
e their own protectionmeasuresto cushion
9 the crisis,includingincomediversificqtion
and internal mioration.

Rurol21 - 05/2009
1970s,the 1980sandin the2000s.ln
contrast, in manyotherLatinAmerican
countriesnon-agricultural employ- of the manyNGo activities for deveropmentit isimportantto highrighttraining
mentgrewin absolutetermsasfastas programmes for leaders in ruraldevelopment, the promotionof micro-businesses and
or fasterthanagricultural
employment ruraland regionáldevelopment plans.Twoof the manyexampres of thesearetheAso-
(Cavassa, A. and Mezclier,
E.,2OOg). ciaciónArariwain cusco( andCedapin Ayacucho(www.dexcer.
orglpdf/cedap-2008.pdf). Theprogrammes mustbe gearedto usingof localtechnical
services,and designedto meetthe demandsof users. Activities
r Small-scale
farmershave directmanagement of the organisations,
adaptation r Theset-upallowsproducers themserves
to designtrainingcapabirities.
mechanisms r Thetrainingapproachincorporates famirywerfare,incrudingaspects
provements in housing,cookingfacirities,
R u r a ls m a l l h o l d e rf a m i l i e si n p e r u micro-landfills
have a number of options mainly
r A staggering of strategies
permitsmoreadvancedtrainees to furtherimproveby
associatedwith the land, and they can betterpenetrating the market:approachesto potentiarcustomers, knowledgeof
apply know-how, methods and physi_ productand business requirements
(quarity,vorume,frequency, packaging, invoic-
cal resistancethey have acquiredover ing, paymentarrears, etc.);membershipof associations in orderto access more
the years.The diversificationof their demandingmarketsthat paybetterprices.
activitiesdoes not necessarilylead to
t h e i r a b a n d o n i n gt h e i r s m a l l h o l d i n g s .
T h e e m p l o y m e n t o p p o r t u n i t i e st h a t thoughwithoutmakingup for the n a t i o n a l C R E C E R( e n g l i s h : G R O W )
m a i n l yf a m i l yf a r m i n g u n i t sh a v eu s e d dropin familyearnings overall. strategy that aims to articulate and
so far underlinethe number of systems
organisethe different State interven_
and other dual-residence activitiesthat Thesechangescan be relatedto tionsfor eradicatingpoverty,one pillar
e n a b l et h e m t o h a n d l ec r i s e sw i t h r e l a - higheragricultural prices,thedynamic of which isto revivesuccessful produc-
tive success. touristindustryin the area,and the tion practicesin agricultureand rural
highervalueplacedon Andeanprod- d e v e l o p m e n t .
Surveysof a group of peasanthouse- uctsby the country'sburgeoningres-
holdsin the southernhighlandsof peru taurant industry.Dual residenceof The Development projectsfor the
show that there is very considerable personswith greaterresources
also Puno-CuscoCorridor and Marenass,
mobility among families(Cavassa, A., allowsthem to combinethe benefits which have nowbeen completed,
2009). Of 450 families interviewed of agricultural activities with the more t h e S ó u t h e r nH i g h l a n O D s evelopment
in 2005, only 200 could be located numerousand betterqualityservices Project which is underway,
are con-
in 2008. This chiefly indicates the providedin the towns: the district sidered to be successful
in the fight
dynamic economic activity of many authoritiesusuallyresidein the near- againstpovertysincethey incorporate
families between these two years. est largecity,but most modestfami_ strategiesthat can be adapted
to local
Basedon earnings,they can be divided liesalsotry to includetownsor citiesin demand. Fundsaredirectlytransferred
into two groups: theireconomic strategies, oftenthanks to producers'organisationsby means
to the presencethere of childrenor of competitivegovernmentfunding to
r On the one hand, a smallbut sig- siblinos. activatethe technicalservicesmarket
n i f i c a n tg r o u p w h o s ee a r n i n g sa n d
and targeting natural resourceman-
tangible assetsimproved; the main
a g e m e n ta n d t h e p r o m o t i o n o f r u r a l
change in the incomes of these r Measures to advance rural businesses.
familieswas the increasedamount development
obtained from farming, with crops
I n t h e n a t i o n a lr u r a l d e v e l o p m e n t
showing greater growth than live- To counteractthe crisis,peru has p o l i c i e si m p l e m e n t e do n t h e b a s i s
stock. drawn up an EconomicEmergency this experience, state development
Planthat givespriorityto higherpub- projects,the developmentexperience
r O n t h e o t h e r h a n d , f a m i l i e sw h o s e lic spendingand investment, in order of NCOs and the producers,associa-
economicconditionsworsened;this to generateshort-termemployment. tions are to complement each
isexplainedby the reductionin non- Agriculturalpoliciesface difficulties Eachlevelof organisation,both public
agricultural earnings (particularly because they are not well interlinked and private,will concentrateon what
employment),but agriculturalearn- with other sectors.This could be it does best. NCOs have developed
ings increasedeven in these cases, overcomeby integrating
them in the strategiesto reduce the costs of dis_

Rurol21 - 05/2009
AgriculturaI production remains an
imoortant sourceof incomefor rural
householdsin the AndeanSierra.

them to keepthem sustainably above

the officialshoppingbasketof USD70
per personper monthwhichclassifies
them asooor.
! tions (farmersassociations,peasants
€ cooperatives,irrigators
orga isations,
- etc.)must be strengthened and they
mustbesuccessfully integratedin net-
worksor consortia.
A detailed list of referencescan be
obtoined from the outhor.

s e m i n a t i n gt e c h n o l o g i c ailn n o v a t i o n s population.The continuing impor-

f o r f a m i l i e s .s o t h a t r u r a l h o u s e h o l d s tance of agriculturein the ruralsector,
with only a few yearsof formal educa- the efforts by familiesto give greater Cavassa,A. (2004):Construyendo
t i o n u s ef a c t o r st h e y a r ea b l et o h a n d l e addedvalueto their products,and the regióndesdelosespocios
a n d r e q u i r em i n i m a l f i n a n c i a lc a p i t a l new strategies suchasdualtown-coun- LoexperienciodeAroriwoen Cusco.
( s e eB o x o n p a g e 3 1) . try residence,need to be understood EED-AsociaciónArariwa.
and harnessed.
EvqluqciónExpostde Proyectoen
r Conclusion While rural development projects
bosea losindicadoresdelobjetivo
havesuccessfully improved household
delmilenio,Estudiodela Micro-
The mostsuccessfulruraldevelop- welfare,asyet they havenot beenvery
cuencade Piuray- Cusco.Erwin
havestrategiesthat can effectivein ensuringthat ruralfamilies'
be adaptedto the needsof the local earnings grow sufficiently to allow

Zusammenfassung die verschiedenenspezifischenProjekte por el elemplo de la sierraperuana:en

sind von der
Die StaatenLateinamerikas zur Fórderungdes lándlichenRaumeszu esta región - que se caracterizapor la
weniger starkbetrof- sein.Dank dieserProiekteist es bereits diversificaciónde ingresosy sobretodo
fen alsandereRegionen.Dasliegt gróR- gelungen,die Lebensbedingungen der por una fuerte migracióninterna- casiel
tenteilsdaran,dasssiezu Beginnder Krise Familienzu verbessern.Ob es mit ihrer 80 por ciento de la poblaciónvive de la
auf Wáhrungs-und Steuerreseryenzu- Hilfegelingt, die Einkommender Men- agricultura.El plan coyunturalnacional
rückgreifenkonnten. Die Bevólkerungim schennachhaltigso weit zu erhóhen,dass (PlanEconómicode Emergencia),que
lándlichenRaumhat ihre eigenenSchutz- sie die Armutsgrenze überschreiten,ist debíacrearante todo puestosde empleo,
mechanismenentwickelt,um Krisensitu- jedoch fraglich. apenastendrá influenciaspositivasen el
ationenabzufedern,wie das Beispielder mundo rural debido a la falta de vincu-
peruanischenSierrazeigt: Einkommens- Resumen laciónentre Ia políticaagrariay otros
diversifizierungund vor allem eine starke Los estadosde América Latina se ven sectoresde la política.En vez de ello, los
interne M igrationsind charakteristisch menosafectadospor la crisisfinanciera diversosproyectos específicospara el
fürdiese Region,in der knapp 80 Prozent mundial que otrasregiones.Ellose debe fomento del sectorrural parecentener un
der Menschenvon der Landwirtschaft en su mayor parte a que - al iniciarsela mayor efecto. Craciasa estosproyectos,
leben.Der nationaleKonjunkturplan, crisis- los paísespudieron recurrirsus ya ha sido posiblemejorarlascondicio-
der vor allemArbeitsplátzeschaffensoll, respectivasreservasmonetariasy fiscales. nes de vida de lasfamilias.5in embargo,
wird den lándlichenRaumaufgrund der A su vez, la poblaciónde lásáreasrurales es dudoso que tales proyectos logren
mangelndenVerknüpfungvon Agrarpo- ha desarrolladomecanismospropiosde incrementarel ingresode estaspersonas
litik und anderenPolitikbereichen
kaum protecciónpara amortiguarlassituacio- en forma sosteniblehastael punto de
positivbeeinflussen.Wirksamerscheinen nesde crisis,como queda demostrado superarel umbral de la pobreza.