CGAP–Ford Foundation Graduation Pilot
Peru

Name of project: Peru CGAP–Ford Foundation Graduation Pilot
Project implementers: Asociación Arariwa and Plan Peru
Project partners: Plan Canada
Location: Cusco
Start date: 2010
No. of clients reached: 800 households
Research: Randomized impact assessment (household level) and qualitative research by Innovations for Poverty Action
Consumption support: S/.100 (US$34) for nine months, building on Juntos, the government’s conditional cash transfer program
Livelihoods: TBD
Financial service: Savings through village community banks implemented by Arariwa
Additional services: Plan and Arariwa will provide enterprise training, social work, and health prevention

Asociación Arariwa is a nonprofit nongovernmental organization established in 1994 in Cusco, Peru. Founded over 70 years ago, Plan is one of the oldest and largest international development agencies in the world; it aims to achieve lasting improvements in the quality of life of deprived children in developing countries.

Project status
The Peru CGAP–Ford Foundation Graduation Pilot will be conducted in 80 communities in the provinces of Canas and Acomayo, with the purpose of improving the living conditions of families in extreme poverty, empowering them socially and economically, and graduating them into financial services.

The direct beneficiaries will receive nine months of consumption support (in cash), a productive asset, access to a savings account, and a series of group and individual training sessions in areas relevant to their productive assets and themes related to microfinance, entrepreneurship, and social improvement for 24 months. At the end of the 24 months, every household will have the option to request a loan from Arariwa to move forward with its new livelihood strategy. Although the benefit is at the household level, livelihood activities that favor women’s empowerment will be given priority.

The project will complement the work of the Juntos (Together) conditional cash transfer program, which currently provides a stipend of approximately US$34 to families in extreme poverty in several of the pilot’s areas of intervention. The project will provide a stipend of US$34 for nine months to all beneficiary families that would be eligible for but currently do not receive support from the Juntos program.

Arariwa will develop a group savings product for the beneficiary population and provide participants with credit products when they show that they are ready to take on credit responsibility. Credit will be offered to these families after 20 months of household monitoring visits.