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Building Private Sector Relationships to Promote the Buyer-led Approach in Peru

In Peru, a buyer-led approach links buyers with proven demand to local suppliers, improving processing, and increasing rural incomes and creating employment.
To promote sustainable economic growth in Peru’s rural areas, the Poverty Reduction and Alleviation Project (PRA), now in its second phase, facilitates market linkages among producers and buyers that allow producers to see higher prices and buyers to source the right products. In short, PRA encourages producers to find a concrete buyer before they produce.
 
To that end, the project developed economic service centers—or ESCs—to facilitate access to market information and technical assistance and act as “honest brokers” between buyers and producers. They also promote a strong business enabling environment and coordination between the public and private sectors.
 

 

Since 2000, the project has linked 52,000 small-scale producers with 220 national and international companies, created more than 84,000 jobs, and facilitated $325 million in investment in the Peruvian highlands. The second phase of the program, which began in 2009, is working to multiply those benefits by ensuring sustainability of the PRA model through global development alliances between the U.S. government, the Peruvian government and the private sector firms.

To date, the project has leveraged more than $10 million from private sector firms. On Tuesday, January 17, 2012, USAID/Lima and the Peruvian Government’s Sierra Exportadora regional economic inclusion organization signed a memorandum of understanding to facilitate USAID’s transfer of the Peru PRA model into Peruvian hands as official economic development policy.

The signing of this MOU between USAID and Sierra Exportadora will further merge the capacities and funding from the US Government, the Peruvian Government, and private sector companies to help the citizens of Peru’s Sierra region overcome poverty.

Read more about the Poverty Reduction and Alleviation Project at www.proyectopra.com/.

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