Peru Sustainable Growth and Finance DPF-DDO

The development objective of the Sustainable Growth and Finance Development Policy Financing (DPF) Deferred Drawdown Option for Peru is to support government reforms to: (i) strengthen fiscal resilience and efficiency, (ii) foster a more inclusive and competitive financial sector, and (iii) promote greener production. This operation is aligned with the World Bank Group (WBG’s) global crisis response framework (GCRF), especially pillars 3 and 4 on strengthening resilience and strengthening policies, institutions, and investments for rebuilding better. This operation incorporates lessons learned from the Bank’s previous engagements in Peru and other upper middle-income countries. Three main lessons are learned: (i) strong analytical underpinnings provide the foundation for a well-designed operation. Critical analytical and advisory services (ASAs) contributed to the design of this DPF and helped shape some of the prior actions; (ii) strong links to other WBG technical assistance and investment operations are critical for the program’s implementation. The operation is linked to areas where the Bank has ongoing or recent engagement, such as on financial sector and capital markets and agriculture innovation and extension; and (iii) strengthening governance and institutions and mainstreaming climate action in the development agenda of key sectors are long-term processes.