Peru—Policy and Institutional Development Component (PIDC) of the Alternative Development Program

Client: U.S. Agency for International Development

Duration: 2005-2008

Region: Latin America and the Caribbean

Country: Peru

Solutions: Governance

By 2005, Peru was the second-largest producer of coca leaves in the world, and production of coca leaves and cocaine has been rising dramatically as a consequence of counter-narcotics activities in Colombia and comparatively ineffective counter-narcotics policies and institutions in Peru. The U.S. Agency for International Development contracted DAI to work on improving the counter-narcotics policy framework upon which success of the alternative development program depends, and to strengthen government institutions responsible for implementing those policies. This project focused on strengthening control of the licit coca market, strengthening control of precursor chemicals used in processing coca into coca paste and cocaine, and strengthening enforcement of money laundering controls.

Sample Activities

  • Provide political actors and opinion leaders with the best and most reliable, up-to-date information on drug production, consumption, the role of coca in drug production, and precursor chemical control in Peru.
  • Provide information to the political authorities and increase awareness of public opinion through direct presentations to the main political actors in the country (ministers, congressmen, congresswomen, political leaders, regional presidents, local government authorities, diplomats, officials from the army and the police, academics, business leaders, and journalists).
  • Develop studies on alternative development programs and their results.
  • Inform debates in the National Congress related to counter-narcotics policy.

Select Results

  • Supported the design of better legislation and of a new information system to control precursor chemicals; facilitated coordination between the tax authority and the Ministry of Production (in charge of precursor chemical control); and supported the allocation of funds for these actions through the national budget.
  • Strengthened the national drug control commission’s capabilities by defining the Counter-Narcotics National Strategy; designing and implementing the Rapid Impact Plan, including new budget resources to finance counter-narcotics strategy; conducting research and developing information; and restructuring the commission.
  • Produced a book that compiled studies on development alternatives, precursor chemicals, coca market, security, and legal issues.


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