Located in the heart of the Amazon rainforest, the state of Loreto in Perú is a place of contrasts. It is by far the largest state in Perú and also among the least densely populated. It is so remote that it’s capital, Iquitos, is closer to the border with Brazil and Colombia than to the capital cities of its closest neighbors, San Martin and Ucayali. Iquitos is home to over 50% of the state’s population of around a million people, but can only be accessed by river or air, making it one of the largest cities in the world without roadway access.

The region’s geography and the remoteness of its capital pose challenges to economic integration with the rest of the country, as do the social and environmental challenges from managing the extraction of natural resources, preserving the Amazon ecosystem, and protecting the indigenous communities that live in it. Income per capita growth in Loreto has chronically underperformed the national average and its peer states in the Amazon, leading to poor social, health and education outcomes. Balancing Loreto’s economic needs with the need to preserve the environment and indigenous communities is key to the region’s economic development.