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Reducing Poverty through Job Creation and Entrepreneurship in Peru

The Poverty Reduction and Alleviation (PRA II) Project promoted a demand-driven approach to create jobs and increase revenues for small-scale producers.
​In partnership with USAID, Chemonics worked on the second generation of the Peru Poverty Reduction and Alleviation (PRA II) project, which created more than 82,000 jobs and $300 million in investment in the Peruvian highlands from 2000 to 2008 (PRA I). Through what has become known as the PRA model, the project linked buyers with proven demand to local suppliers, intervening to alleviate producer bottlenecks in meeting buyer requests and, in turn, generating rural income and employment.
 
 
PRA II expanded the work of its predecessor, working through ten economic service centers in trade corridors – geographic areas linked by the movement of goods, services, and people – to connect micro, small, and medium-sized enterprises to new markets. PRA II also identified critical regulatory reforms to ease trade and investment and facilitates meaningful public-private partnerships.
 
Capitalizing on support from public sector agencies and local private firms generated by the project’s first phase successes, PRA II engaged strategic partners to co-finance service centers and sought public-private partnerships to strengthen their impact.
 

As an example of success, Alpaca fiber production –already present in five PRA corridors– provides a significant means to improve small producers’ quality of life in high altitude provinces, where product diversification alternatives are limited. The PRA team worked with rancher associations to strengthen their organizations and provided tools for a higher quality product. Now more than 2,500 beneficiary families in the high Andes have a steady source of income thanks to PRA’s assistance. 

 

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