Aliados - Partners for development: Fighting poverty in Peru's rural highlands

October 3, 2012

Learn more about Rural Business project that was created in Ayacucho, one of the poorest regions of Peru and where the Aliados program has been developed.

World Bank

  • Over 53,000 families participate in productive projects they developed themselves.
  • The Aliados program co-finances rural businesses and community development projects.
  • Beneficiaries also receive technical assistance for their activities.

“We are all better, the families, the children. If there were no Aliados project, we wouldn’t have anything at all; we wouldn’t have made it. Thanks to the project, we have a tub, table and molds; we have bought many things,” says Gustavo Quito, a cheese maker from Junín.

To make progress a reality in the poorest areas of Peru’s rural highlands is a key objective of ALIADOS (Support to Productive Rural Partnerships in the Highlands), a program of the Ministry of Agriculture implemented with US$ 20 million in World Bank financing.

This program partially subsidizes the establishment of rural businesses and community development projects in 43 districts of the central highlands.

 “When we see our cuyes (guinea pigs) in every home, we our living our dream,” says Telesforo Torres, who raises cuyes in Santa Ana de Ragán, Pasco.

Beneficiaries are fully responsible for managing these initiatives. In addition to co-financing, they receive technical assistance for their productive activities.

Producers can use a part of their earnings to expand their activities, thereby contributing to the sustainability of their businesses.

Juana Ventura, a noodle manufacturer in Apurimac, says: “Before, our children didn’t go to school; now they go to school, to universities, some even attend private ones. We’re doing better than before. That’s why I get so emotional…”

Besides contributing to their personal development and strengthening their self-esteem, producers benefit from applying for program financing because it gives them a chance to identify the needs and challenges they must overcome to make their community grow.

" Before, our children didn’t go to school; now they go to school, to universities, some even attend private ones. We are doing better than before. That’s why I get so emotional… "

Juana Ventura

Noodle manufacturer - Amancaes Association, Apurimac.

New areas

“Aliados has made significant progress in improving the lives of rural highland families. For this reason, the Peruvian government has asked the World Bank for support in financing the expansion of the program to new districts in the six intervention regions. This expansion would permit the consolidation of program results. In the medium term, it would also offer the possibility of replicating the model in other regions of Peru,” says Program Director Renato Nardello.

To date, the program has financed 864 community development projects and 888 rural businesses in the regions of Apurímac, Ayacucho, Huancavelica, Huánuco, Junín and Pasco. The second phase of the Aliados Program is expected to benefit another 60,000 families through the co-financing of an additional 1,000 community development projects and more than 600 rural businesses.