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Chapter 26. Making Growth Inclusive: Establishment of the Ministry of Social Development and Inclusion

Alejandro Werner, and Alejandro Santos
Published Date:
September 2015
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Carolina Trivelli

Peru has a long history of uncoordinated and not necessarily effective social policies. Only recently has the government recognized the need to adapt social policies to achieve inclusion objectives and coordinate policies within different time horizons. Against this backdrop, the government created the Ministry of Social Development and Inclusion (MIDIS) in 2011 with an ambitious agenda to accelerate poverty reduction and achieve inclusive growth. While progress has been uneven, preliminary evidence suggests that the government is on the right track to achieve objectives set for 2016. For the future, it will be important to redouble efforts to continue implementing the National Strategy for Social Development and Inclusion, which will reduce chronic child malnutrition, strengthen early childhood development, enhance programs for children of school age, promote innovative economic inclusion, and broaden protection for the elderly.

At the start of President Ollanta Humala’s administration in 2011, the government undertook a wide-ranging initiative to achieve social inclusion by targeting the most vulnerable segments of the Peruvian population. To that end, a decision was made to reform the entire set of government social initiatives and establish a unified strategy to ensure mutually reinforcing public sector efforts to reduce poverty, thereby boosting the impact of those initiatives and achieving a shared, fundamental, and broad-based social protection floor for all Peruvians.

The commitment to social inclusion is based not just on considerations of justice and fairness, but also reflects a conscious resolve to ensure that all Peruvians, male or female, can contribute to the development of their family and community and thereby to the growth of the country as a whole. The task is to make sure that the Peruvian State has the tools, strategies, and resources to ensure that all citizens—no matter where they reside, what language they speak, what their parents do, or what resources are at their disposal—can get ahead in life and achieve their goals, thus contributing to Peru and its development.

Starting Point

Social policies, and especially policies targeting excluded segments of the population, have been around for a long time. In the specific case of Peru, one of the oldest social programs—the Drops of Milk (Gotas de Leche) Program dates to the administration of President Augusto B. Leguía in the early twentieth century.1 Social policy has obviously changed significantly since then, to the point where there are now coordinated programs to address specific segments of the population and specific needs.

During Peru’s more recent history of social policy, the interest in improving coordination among programs can be traced to the government of Alejandro Toledo (2001–06), when initial efforts were undertaken to achieve some degree of coordination of social policies through the Inter-Ministerial Committee on Social Affairs (CIAS), headed by the Office of the President of the Council of Ministers. In 2003, the CIAS published the Guidelines for the National Strategy to Overcome Poverty,2 followed a year later by adoption of the National Plan for Overcoming Poverty 2004–06.3 The strategy encompassed the entire set of programs and interventions associated with poverty reduction and put forth overall objectives to achieve that reduction. It also proposed that each sector align its own plan for overcoming poverty with the national strategy. As often happens, each entity complied with its obligation to draw up a plan and at that point coordination of the strategy ceased, despite the emphasis in the strategy itself on dovetailing and coordinating efforts.

During the administration of Alan García (2006–11), CIAS devised the CRECER (Growth) National Strategy as a fresh attempt to foster coordinated actions to tackle the main problems associated with poverty. CRECER made headway in particular with efforts to combat child malnutrition. Chapter IV of the CRECER National Strategy’s Work Plan (Plan de Operaciones) specifically established operational procedures for both horizontal and vertical functional coordination of the various public sector interventions targeting that problem.4 Although the CRECER strategy set three objectives, coordination improved only with respect to the first (combating malnutrition). Specifically, consensus was achieved regarding a model for complementary sectoral interventions that together would work to reduce malnutrition. Regional processes for implementing the CRECER strategy proved to be especially valuable, particularly in areas where efforts were reinforced by social coalitions and local authorities, supported by joint interventions by international and donor agencies. Good examples were in Ayacucho, with CRECER Wari,5 Puno (in Carabaya, in particular), and Huancavelica.

The start of President Humala’s administration in July 2011 triggered a debate over the need to organize social policy, direct it to overcome the country’s major social challenges, and coordinate it with other national policies. The objective was to ensure that universal social services (health, education, and civil identity) in fact reach all citizens. President Humala proposed mobilizing resources for social policies to promote inclusion and, at the same time, ensuring that that enhanced inclusion sustained the country’s growth. To that end, the MIDIS was established in October 2011 to manage the principal targeted social policies in a coordinated manner and to serve as the social development and inclusion policymaking body. The president assigned the new ministry the dual challenge of ensuring universal access to public services and incorporating more Peruvians into the fabric of those services as a strategy for ensuring Peru’s ongoing growth.

In addition, the MIDIS was assigned responsibility for coordinating policies targeting the population in situations of poverty and vulnerability and for directly executing five social programs, four of which already existed and one that was still being developed. The five programs are (1) Juntos, a conditional cash transfer program; (2) FONCODES, the remnant of what was once the social investment fund set up during the structural adjustment of the 1990s; (3) Wawawasi, a day care center program, which would expand its services and coverage and eventually become today’s Cuna Más program; (4) PRONAA, the government food procurement/logistics body for distributing food to various vulnerable groups; and (5) Pensión65, the social program that was to start delivering noncontributory pensions (as of 2012) to persons over the age of 65 living in extreme poverty.

The MIDIS thus began with the challenge not only to expand, improve, and coordinate those five programs, but also to coordinate their activities among the programs themselves and with actions undertaken by other government entities.

The Idea Behind the MIDIS

The establishment of the MIDIS reflects the need for more effective and coordinated policies to address the challenges posed by still-high poverty rates, especially in rural areas. Although the poverty rate has declined significantly in Peru (from 58 percent in 2001 to 26 percent in 2012), the country still suffers from stark divides. Extreme poverty is virtually nonexistent in the big cities, while it exceeds 30 percent in the most remote rural areas. The child malnutrition rate in rural areas is more than double the national average.6 For these reasons, the MIDIS has largely focused since its inception on closing gaps associated with poverty and marginalization.

The establishment of the MIDIS was opposed by some because there were concerns that it might become an instrument of government patronage or another government bureaucracy put in place just to meet electoral promises. Fortunately, in the three years since the ministry was established, neither of those problems has materialized. However, given those concerns, it is important to clarify the role of the MIDIS and the scope of its actions.

The MIDIS was shaped by a particular context that justified its establishment and proactively facilitated its implementation (Vargas 2014). First, Peru had been experiencing a period of sustained economic growth, associated with substantial increases in the government budget and in investment, along with a significant decline in poverty rates. However, those positive circumstances disguise the existence of gaps that are not being closed by higher economic growth, lower aggregate poverty, or greater investment. In other words, while the country as a whole is doing well, there are many Peruvians who not only fail to perceive improvements in their standard of living, they also feel disconnected from the activities bringing about the overall improvement. They are being left behind, or are falling further behind, and for that reason there is a need to target specific policies toward them so that they can catch up and, ideally, progress at the pace of the country as a whole, both for their own well-being and for the well-being of the nation.7 The MIDIS was established to find new ways to meet that challenge, to build on existing efforts, and to ensure that the fruits of growth translate into enhanced capacity and opportunity for all.

One of the MIDIS’s first tasks was to clarify the term “social inclusion,” which it defined as “circumstances in which everyone can exercise his or her rights, use their skills and make the most of the opportunities available to them” (MIDIS 2013a).

Once a consensus was reached on the definition, the ministry had to be made operational. To that end, based on the human development approach, the MIDIS devised a model with three complementary time frames: short, medium, and long term (Figure 26.1).

Figure 26.1Operational Approach of the Ministry of Social Development and Inclusion

  • In the short term, through direct assistance programs, the focus is on providing temporary relief from conditions causing households to suffer exclusion and poverty. The idea is to enable families to overcome day-to-day challenges by providing them with the minimum resources needed to exercise their rights and access the public services to which they are entitled.
  • In the medium term, the focus is on developing the capacity that will enable households to pursue, in a sustained and dignified manner, paths to overcome the conditions of poverty and exclusion that beset them. Thus the main thrust here is on broadening access to a basic services and infrastructure package and increasing autonomy with respect to the provision of sustainable livelihoods by generating better living conditions (healthy homes, food security, etc.) and incomes through higher productivity, financial inclusion processes, and so on.
  • Longer-term efforts will focus on pursuing policies to generate next-generation opportunities, with particular emphasis on human capital factors: nutrition, health, and quality education. Here, the idea is to reduce the intergenerational transmission of poverty so that the children of families suffering poverty and exclusion today are not condemned to be poor and excluded as well, and to find paths to inclusion for them.

These three time frames should not be understood as consecutive stages; rather, the MIDIS is committed to simultaneously mobilizing resources for all three. The challenge for development and inclusion policy is to design and promote complementary interventions that address short-, medium-, and long-term needs at the same time.

However obvious as it may seem, not all sectors have a set of established indicators, much less clearly defined targets. Being a multisectoral ministry, the MIDIS set out to define indicators and targets, but at the same time it proposed that those indicators and targets reflect progress in social development and inclusion more broadly—that is to say, the entire set of intergovernmental and intersectoral interventions aimed at producing the prioritized outcomes. Along those same lines, it was agreed that it should be possible to calculate the indicators using national statistics, so as to ensure independence and transparency in their measurement.

Given that the MIDIS assigned priority to addressing social disparities, six indicators were proposed both for the national aggregate and the most excluded segment of the population (Table 26.1). To that end, the ministry began by defining this group, which was called the “population encompassed by the social development and inclusion process.” The criteria used to define this population stemmed from a multidimensional approach to poverty that includes both monetary and nonmonetary criteria. Operationally, the population encompassed by the social development and inclusion process is comprised of households that have at least three of the four characteristics associated with the exclusion process, which are the following: rural households, that is, those located in settlements of 400 or fewer dwellings (2,000 people); households with a female head of household or spouse who never completed primary school; households with a head or spouse whose mother tongue is an indigenous language (Quechua, Aymara, or Amazonian); and households in the lowest quintile of national distribution of expenditure per capita.

Table 26.1Ministry of Social Development and Inclusion: Policy Indicators and Targets(Percent)
NationalPopulation Encompassed by the Social Development and Inclusion Process
Baseline 2010Target by 2016Baseline 2010Target by 2016
Poverty Gap7.96.028.616.3
Extreme Poverty8.
Extreme Poverty Based on Households’ Independent Income11.07.050.526.7
Households with an Integrated Services Package59.470.013.246.9
Attendance of Children Aged Three to Five Years in Standard Preschool Education73.885.060.678.4
Chronic Malnutrition in Children Under Five Years23.210.050.723.8

As for the territorial distribution of the population encompassed by the social development and inclusion process, when the MIDIS was established the regions with the largest share of this population as a percentage of their total population were Huancavelica, Apurímac, Ayacucho, Huánuco, and Puno. The regions with the lowest share were Tumbes, Callao, Ica, and Lima, where this group accounts for 2 percent or less of the respective populations (MIDIS 2013b). In absolute terms, as shown in Figure 26.2, the population encompassed by the social development and inclusion process amounted to almost 5 million Peruvians, a little over 16 percent of Peru’s total population.

Figure 26.2Regional Distribution of the Population Encompassed by the Social Development and Inclusion Process

The six indicators established by the MIDIS correspond to the short-, medium- and long-term time frames identified in the operational approach of the social development and inclusion policy. As shown in Table 26.1, the indicators are the poverty gap, extreme poverty, extreme poverty based on households’ independent income, households with an integrated services package, attendance of children ages three to five years in standard preschool education, and chronic malnutrition in children under five years.

While establishing social sector targets and indicators might seem an obvious step, the fact is that in Peru’s case it was far from self-evident. When a Ministry of the Economy is asked about its performance, everyone knows what indicators will be used (inflation, growth, the fiscal deficit, and so on), so it is the targets that are of most interest. In the social sectors, on the other hand, there is still not always agreement even on the indicators. Therefore, the MIDIS set out to establish both indicators and targets from the outset and to set the targets through to the end of President Humala’s term in office (in 2016).

Outcomes to date show that the MIDIS has made headway toward the targets established. As discussed below, by the halfway point of the administration, indicators showed progress, but there were also some warning signs that have since enabled the MIDIS to redouble its efforts in certain areas. The warning signs demonstrate the importance of having a set of timely indicators that can help the ministry stay on track. The most notable outcome thus far is that the extreme poverty reduction target for 2016 (5 percent) was already achieved in 2013.

Establishing A Sector Strategy: A Key Tool for Management, Coordination, and Inclusion

The key to achieving these outcomes is to have a clear road map, know what to do and how to do it, and know who the participants are. That is why, once the MIDIS was established, targets set, and all available instruments assessed,8 it was essential for the ministry to generate a feasible and workable strategy to guide its actions and coordinate efforts with other government entities and agencies.

The National Strategy for Social Development and Inclusion (ENDIS) was thus adopted in May 2013. Based on person-centered and coordinated interaction throughout the life cycle, the strategy makes it possible to address the principal disadvantages faced by poor families and at the same time provide them with the new services and tools they need to make progress in life.

Figure 26.3 presents the five pillars of the strategy. In some areas, the strategy builds on what is already in place by incorporating previous advances, such as the decision to make fighting malnutrition a pillar of the strategy. In other areas, it posits new types of action and new objectives, as in the economic inclusion pillar, where it is not just a question of helping families with isolated public interventions, but rather of providing them with a whole package of measures that increases their resource base of public and private assets, their productivity, and the return on their assets. This economic inclusion pillar probably represents the area in which social protection efforts have dovetailed most effectively with attempts to foster independent development for the poorest families.

Figure 26.3The Five Pillars of the National Strategy for Social Development and Inclusion

The ENDIS also serves as a two-pronged instrument for the MIDIS. On the one hand, it sets the agenda for coordination with other sectors and levels of government in each of the five pillars. On the other, it establishes the road maps for the five programs executed by the MIDIS in order to ensure that each program performs a function in the pillars in which the program intervenes. These programs play a vital part in ensuring that the recipients (mainly women) gain access to and use basic public services. For many, access and use of these services represents an acknowledgment of full citizenship.

Principles and Strategies Complementing the ENDIS

Ever since the MIDIS was established, the idea has been to attain a highly professional, results-oriented social sector that makes efficient use of the public resources allocated to it. To that end, a number of principles and strategies were adopted to complement the ENDIS and ensure transparent, efficient, and person-centered management geared toward bringing about substantive changes in the living conditions and opportunities of the population living in poverty and vulnerability.

Some of the principles and strategies adopted were very simple, but had direct implications for management. Five are worth noting here:

  • First, the goal is not so much to dream up solutions, but rather to build on experience. Hence, the objectives of the ENDIS include achieving progress through a cumulative process, joining forces with other sectors, building on previous experiences, and pooling efforts with other levels of government. The aim is to forge collective and coordinated efforts and build on progress already made.
  • Second, actions need to be results oriented, which is why it is important that the five MIDIS programs are now governed by results-based program budgets. More than 90 percent of the ministry’s budget is now performance-based.9 What is more, this principle forced all the programs to clarify what they expected to achieve through their actions and thereby rationalize their efforts.
  • Third, policy formulation and evaluation had to be evidence based. The only way to make progress toward effective and efficient interventions is to evaluate what is done, propose and promote improvements, and then reevaluate what is achieved. Evaluation of impacts, results, and processes is also vital to determine what initiatives need to be discontinued because they are not producing the desired results. Thanks to this principle, the MIDIS in 2012 closed a social program—for the first time ever in Peru—that was failing to deliver results (the PRONAA).
  • Fourth, it was clearly established that effective and inclusive policies require a thorough understanding of the beneficiaries, communities, families, and markets involved. The establishment of the MIDIS revealed how little information there was about which programs were underway across Peru, the populations groups served by them, and the challenges that needed to be overcome. Moreover, gaining knowledge to achieve inclusiveness introduced transparency with respect to the rules under which programs operate and in their territorial distribution (for instance, through InfoMIDIS, on the ministry’s website). At the same time, that information has shed light on the living conditions of beneficiaries of MIDIS programs and on the coordinated actions undertaken within each pillar of the ENDIS.
  • Fifth, achieving results means moving away from business as usual in the operation of social programs, so it is critical that the MIDIS remain receptive to social innovation. Inclusiveness through innovation is a must if the government wants to promote services and programs more swiftly and effectively identify better ways of touching the lives of beneficiaries. This approach has enabled the MIDIS to venture into areas such as the financial inclusion of beneficiaries of MIDIS transfer programs. It has also tested the creativity of both businesspersons and public administration officials in seeking ways to reach more than 3 million children with school meals based on decentralized purchases.

Has Progress Been Made Since the MIDIS was Established?

As mentioned above, the MIDIS has made progress both at the institutional level and in terms of the prominence of social inclusion issues on the policy agenda. It is now widely recognized that the government cannot abdicate its responsibility to protect and include all citizens. There is also clear progress in the indicators that the MIDIS developed: halfway through the current presidential term, the government is well on track to meet targets set by the MIDIS for 2016. The findings are based on official statistics from the national household and health survey known as ENAHO. Some indicators are advancing slowly, but as a result of early warning signs, steps are being taken to create new policy instruments (such as the Performance Incentive Fund) and undertake new social policy actions. As was to be expected, more progress is being made at the aggregate level than with respect to the population encompassed by the social development and inclusion process, which is where the major challenges lie and where, despite some progress, meeting targets will prove more elusive.

Predictably, the first targets met (or that are close to being met) are those related to short-term actions to relieve the plight of the poor and vulnerable. This is due to the expansion in coverage (and resources) of the principal relief programs. The extreme poverty rate in 2013 was 4.7 percent and the poverty gap ratio was slightly over 6 percent (Figure 26.4).10 There has been major progress with respect to the medium-term indicators, where the goal is to boost people’s autonomy and capacity to access opportunities to get ahead. Likewise, as a result of efforts coordinated with the health, education, and housing sectors and with local and regional governments, significant progress is being made with respect to a key long-term indicator: the reduction in chronic child malnutrition. Peru has met the Millennium Development Goal target in that area and is close to achieving the goal of reducing chronic child malnutrition to 10 percent or less (in 2010 it stood at 23.1 percent) (Figure 26.5).

Figure 26.4Ministry of Social Development and Inclusion Indicators at the National Level


Sources: Household and Health Survey (ENAHO), 2013; Ministry of Social Development and Inclusion (2012a); and author’s calculations.

Figure 26.5Ministry of Social Development and Inclusion Indicators for the Population Encompassed by the Social Development and Inclusion Process


Sources: Household and Health Survey (ENAHO), 2013; Ministry of Social Development and Inclusion (2012a); and author’s calculations.

It is vital that the indicators and targets put in place by MIDIS for measuring social progress continue, and the hope is to add additional indicators going forward. Ideally, all national, regional, and local government entities should identify the indicators and targets by which their progress can be evaluated. Such a step would mark a milestone in the way that public administration and policymaking are conducted and perceived.

The Challenge: Preserve and Build on the Results Achieved

Progress on the five pillars of the ENDIS has been uneven. The starting points differed and only limited tools were available for implementing policies and programs under several pillars. The ENDIS can be used to pinpoint where efforts need to focus going forward in order to consolidate social policies such that they transition to becoming full-fledged public policies.

For the first pillar, the administration set an ambitious target of reducing chronic child malnutrition to 10 percent by 2016 from 23.1 percent in 2010. By mid-2014, chronic child malnutrition was at 14 percent. That signaled substantial progress, but much remains to be done because it is not just a question of reducing the problem at the national level, but also of lowering it in the regions where it is most prevalent. What the progress has shown is that a method and set of tools have been identified to effectively tackle chronic child malnutrition. Two factors explain that progress. First, a decision was taken to continue programs inherited from the previous government under the CRECER strategy such as Juntos and investments in safe water and infrastructure. Second, a clear diagnostic assessment was carried out to identify what was not working properly and which mechanisms were needed to resolve those issues. Those mechanisms included improving local investments to install safe water connections, encouraging regional governments to allocate budgetary resources to such projects, and generating useful information for timely decision making. The Peruvian government needs to commit to consolidating processes, keeping the package of policies and instruments up and running, and maintaining regional monitoring indicators as the basis for ongoing efforts.

Under the second pillar, early childhood development, a multisectoral comprehensive strategy is about to be adopted, which is essential to ensure that work continue in this area. The expansion of Comprehensive Health Insurance (Seguro Integral de Salud), to which every Peruvian child under three years of age is now entitled, is a major step forward for this pillar. From the standpoint of the MIDIS, external evaluation of programs such as Cuna Más, and above all its new services serving rural communities, will yield information as to how to best proceed in those areas. Clearly, however, the immediate priority is to prepare and implement the pending strategy.

The third pillar, regarding children of school age, is breaking new ground because of the coordination of MIDIS activities with the Ministries of Education and Health in public schools. Today, children attending public preschools and primary schools have health insurance and a health evaluation and screening plan, and receive food supplements to enhance their concentration. In addition, children from poorer households that receive conditional cash transfers under the Juntos program are required to maintain certain school attendance levels. This coordinated plan, known as Healthy Learning (Aprende Saludable), is a pilot program whose achievements need to be expanded to consolidate institutional coordination mechanisms among the three sectors, as well as among the national, regional, and local governments. The role of the different sectors and governmental levels in developing this new way of working with public schools needs to be formalized.

The MIDIS also needs to continue its efforts to consolidate the Qali Warma school food program to ensure that it remains on a sound footing and that parents, school directors, and teachers know how to keep it running. It is worth noting that this program serves twice as many children as the previous program (PRONAA) and does so on twice the number of days.11

The fourth pillar, economic inclusion, is the most innovative area for a socially oriented ministry such as the MIDIS. It requires that those involved continually identify practices and interventions that generate economic opportunities for the poorest families. The MIDIS has two such initiatives that need to be consolidated: FONCODES’ Haku Wiñay program, which serves more than 60,000 families by providing them with assets and resources for technical assistance, investment, and training; and Haku Wiñay, which coordinates with Juntos and encourages rural families to improve their living standards, dwellings, food security, and opportunities to earn incomes autonomously. Initial (independent) evaluations of Haku Wiñay show that it is proceeding well but is still in its early stages of achieving its objectives.

Within that same pillar, MIDIS’ efforts to advance financial inclusion reflect the emergence of a number of successful initiatives. Today, more than 1.2 million recipients of social programs have a savings account under their own name where they receive government transfers via the MIDIS. More than 400,000 recipients of Juntos already have a debit card that they can use at automatic teller machines accessible through an extensive network of points of sale at banks, stores, and pharmacies. A financial inclusion strategy is in place, methodologies and materials have been developed to provide financial education, and the MIDIS has entered into partnerships with public and private stakeholders to consolidate this process and provide more economic opportunities for the beneficiaries of social programs. These innovations need to be further developed, scaled up, and consolidated.

The fifth pillar, protection for the elderly, is an area in which Peru is just beginning to develop policies. The pillar revolves around Pensión65. Today, more than 400,000 older persons receive a cash transfer and have a national identity card, savings account, and health insurance. In more than 80 districts, they can take part in the Productive Knowledge (Saberes Productivos) Program. However, much remains to be done to ensure that the final years of life are always dignified and secure, regardless of where one lives or how much money one has. Clearly, the challenge is to combine the effort to achieve good outcomes with the discussion about pensions, protection, and retirement. However, perhaps the most appropriate approach would be for the MIDIS to focus on expanding services that complement the transfers and leave the rest to the other entities involved, notably the Ministry of the Economy and Finance and the Superintendency of Banks, Insurance and Pensions.


Social program coverage has increased in Peru as a result of the establishment of the Ministry of Social Development and Inclusion and the formulation of a clear results-oriented policy. That policy is based partly on a bold approach to partnerships with other sectors, levels of government, and other institutions (for example, the Banco de la Nación), but also on much more substantial funding. Juntos has so far almost doubled its coverage under the current administration. Pensión65 and Haku Wiñay did not exist in 2010. Cuna Más has maintained its services and developed new services for rural areas, while Qali Warma has quadrupled the size of the school food program.

Despite these advances, the challenges still facing Peru in terms of social inclusion are enormous. As a country, Peru needs to set the goal of guaranteeing that any Peruvian eligible for a social program can access it, which means eliminating undercoverage in targeted social programs. Today, this is only true of Pensión65.

As has been shown in this chapter, there are different challenges for each pillar of the ENDIS. To those challenges three additional key tasks need to be added:

  • Consolidating the transition from ad hoc initiatives to policies that are coordinated and guaranteed by the state. The government stills needs to reach all those who need (and qualify for) social programs, not just with programs here and there, but with the basic package of services to which every Peruvian is entitled purely by virtue of having been born in Peru.
  • Innovating, testing, and evaluating new (smart) mechanisms for intersectoral and intergovernmental coordination to achieve agreed-upon social objectives. The government must continue to search for the best ways to achieve a well-coordinated and consistent presence of the State throughout Peru, with a useful and comprehensive set of policies for citizens, especially the poorest and most vulnerable.
  • Ensuring that all Peruvians are aware that these social policies are investments in the sustainability of the country’s development process, and that they represent Peru’s commitment to recognizing itself as a country of equals where growth is inclusive.

    Ministry of Social Development and Inclusion. 2012a. “Cien días de gestión.” Ministry of Social Development and Inclusion, Lima.

    Ministry of Social Development and Inclusion. 2012b. “Evaluación y reorganización de los programas sociales.” Ministry of Social Development and Inclusion, Lima.

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    Ministry of Social Development and Inclusion. 2013a. “Estrategia Nacional de Desarrollo e Inclusión Social ‘Incluir para Carecer.’” Ministry of Social Development and Inclusion, Lima.

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    Ministry of Social Development and Inclusion. 2013b. “Mapa de la Población en Proceso de Desarrollo e Inclusión Social.” Ministry of Social Development and Inclusion, Lima.

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    Trivelli, C.2014a. “Consolidar políticas sociales de inclusión social para que sean políticas de Estado.” IDEELE246 (December).ón-social-para-que-sean-pol%C3%ADticas-de-estado.

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    Trivelli, C.. 2014b. “A mitad de camino” Poder (August).

    Trivelli, C., and S.Vargas. 2014. “Entre el Discurso y la Acción, Desafíos, decisiones y dilemas en el marco de la creación del Ministerio de Desarrollo e Inclusión Social.” IEP Working Paper No. 208, Instituto de Estudios Peruanos.

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    Vargas, S.2014. “Política de desarrollo e inclusión social: balance y lecciones al primer año de creación del Ministerio de Desarrollo e Inclusión Social.” In Inclusión social: enfoques, políticas y gestión pública, edited by Ismael Muñoz, Ismael. Lima: Fondo Editorial PUCP.

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This chapter is based on a number of papers written in 2014 about the experience of establishing the Ministry of Social Development and Inclusion (Trivelli 2014a, 2014b; Trivelli and Vargas 2014; Vargas 2014). The author would like to thank Jhonatan Clausen for his support during the writing of this chapter.


Gotas de Leche reflected the Leguía administration’s concern with lowering the infant mortality rate and setting up health clinics, day nurseries, and so on. A reference to these governmental initiatives can be found in President Leguía’s speech to the National Congress in October 1924.


The guidelines (Las Bases para la Estrategia Nacional de Superación de la Pobreza) were adopted through Supreme Decree No. 002-2003-PCM.


The plan (Plan Nacional para la Superación de la Pobreza 2004–2006) was adopted through Supreme Decree No. 064-2004-PCM.


The work plan (Plan de Operaciones de la Estrategia Nacional CRECER) was adopted through Supreme Decree No. 080-2007-PCM.


Section 1.5.1 of the CRECER Strategy Work Plan for Wari establishes general guidelines for horizontal and vertical coordination of the strategy.


Section 1.3 of the National Social Development and Inclusion Strategy, “Making Growth Inclusive,” emphasizes the need to narrow poverty gaps (whereby poverty is defined as multidimensional) between urban and rural areas. One of the criteria for defining the population encompassed by the social development and inclusion process precisely cites belonging to a rural household, defined as households located in settlements of 400 or fewer homes. The strategy is available at


Urban-rural divides and those between certain social groups highlight the groups that are lagging behind: the rural population, indigenous groups, poorly educated households, and, clearly, the poorest households. For example, the rural poverty rate is more than triple the urban rate, and chronic malnutrition in the most excluded group is more than double the national average.


As discussed earlier in the chapter, after the MIDIS was established, it was assigned five social programs in January 2012. A decision was made to adopt a plan to evaluate each program and prepare adjustment measures for each one. That process was complicated and had to be done quickly, but it did help bring order to the programs, clarify their modus operandi, and set a clear road map for each program. The main findings of the program evaluations can be found at


When the MIDIS was assigned the five social programs in January 2012, only one of them operated with a results-based budget.


Peru’s social sector budget remains one of the lowest in Latin America, although the budget has increased considerably under the Humala administration. The MIDIS budget (essentially concentrated in its five programs) increased significantly between 2012 (the first year in which the ministry operated) and 2014 (the amended budget for 2014 was almost 46 percent larger than in 2012). See the User-Friendly Consultation on the Economic Transparency site of the Ministry of the Economy and Finance at


In 2014, Qali Warma served over 3 million pupils in the public preschool and primary education system, reaching over 57,000 schools.

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