Washington, DC, June 24, 2021 – The Board of Directors of the World Bank today approved a loan of US$350 million to support the development of social, health and education policies that will help promote human capital accumulation in Peru.
This is the second financing operation of the Human Capital Development Policy, in addition to the US$50 million approved in March 2020. The financing will be used to support the Peruvian government’s efforts to mitigate the effects of the pandemic on human capital and to promote reforms in education. , health and social protection.
“Faced with the onslaught of health, political or environmental crises, families, children and adolescents in vulnerable situations demand that governments provide an adequate, effective and timely response to mitigate negative impacts and accelerate recovery.“, said Marianne Fay, director of the World Bank for Bolivia, Chile, Ecuador and Peru. “For this reason, the project will support the Peruvian government in promoting the reforms needed to improve early childhood development, basic education and health through better and more equitable services,” she said.
Peru’s progress in reducing poverty and inequality over the past two decades is currently threatened by the devastating impact of the COVID-19 pandemic, which has revealed the fragility of human capital in the face of multiple challenges. The most vulnerable families have lost their sources of income. incomes and have experienced increased food insecurity, while their children do not have access to public services offered by schools. The impact has been enormous. For example, it is estimated that children in the poorest income quintile could lose the equivalent of nearly one year of learning-adjusted years of schooling (LAYS).
The combination of school closures, loss of sources of income and emotional stress on families, children and adolescents caused by the pandemic could reduce levels of human capital across the country and increase poverty for future generations. This situation underscores the need for a coordinated and comprehensive effort to build resilient social services and prevent lasting damage to the country’s human capital development.
The project will contribute to the Peruvian government’s efforts to strengthen investments in human capital while ensuring essential policy and institutional reforms in the social sector. To this end, it will support policies to promote comprehensive quality service delivery in the areas of early childhood development, social protection, basic education and health.
This initiative is part of a large portfolio of World Bank projects with the Peruvian government in priority social and economic sectors to strengthen investment in human capital and increase the population’s resilience to external shocks. The combination of these projects will contribute to improving the resilience of the most vulnerable households to different types of shocks, by ensuring that girls and boys are in school and receive quality education from well-trained teachers, and that they receive quality health services throughout their development. .
World Bank Group Response to COVID-19
Since the start of the COVID-19 pandemic, the World Bank Group has committed more than $125 billion to address the health, economic, and social impacts of the pandemic, the fastest and most effective crisis response. important in its history. The funding is helping more than 100 countries strengthen their pandemic preparedness, protect the poor and jobs, and kick-start a climate-friendly recovery. The Bank is also providing $12 billion to help low- and middle-income countries purchase and distribute COVID-19 vaccines, tests and treatments.
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