Peru Systematic Country Diagnostic
Peru has been one of the most prominent performers in Latin America in the last 25 years. Peru is characterized by a complex and diverse geography that holds wealth in natural resources and several spatial development challenges.Peru has a remarkab...
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| Format: | Report |
| Language: | English en_US |
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World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/919181490109288624/Peru-Systematic-Country-Diagnostic http://hdl.handle.net/10986/26376 |
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okr-10986-263762021-05-25T08:59:05Z Peru Systematic Country Diagnostic World Bank Group STRUCTURAL TRANSFORMATION CHALLENGES POVERTY REDUCTION INCLUSION SHARED PROSPERITY ECONOMIC GROWTH ECONOMIC OUTLOOK SUSTAINABILITY INSTITUTIONAL FACTORS PRIORITIES HUMAN CAPITAL Peru has been one of the most prominent performers in Latin America in the last 25 years. Peru is characterized by a complex and diverse geography that holds wealth in natural resources and several spatial development challenges.Peru has a remarkable cultural heritage and rich ethnic diversity. Peru’s geography, natural endowments, and diverse population have shaped its unbalanced economic development.Geography and resource abundance have thus led to a spatial concentration of economic activities and opportunities, creating large disparities in development across the country’s territory and its population groups.The virtuous cycle of growth and shared prosperity can be explained in large part by a combination of two main forces: favorable exogenous conditions and successful macro structural reforms.The new headwinds indicate that the past virtuous cycle of growth and shared prosperity may have reached its limit.These new headwinds highlight two structural challenges that have emerged from Peru’s specific endowments, and that constrain the opportunities for income growth of the bottom 40 percent. First, the persistence of large spatial disparities in development consistently undermine the ability of certain population groups, particularly indigenous and Afro Peruvians, from overcoming poverty. Moreover, the capital-centric development model contributes to imbalances within the urban sector.Peru’s second structural challenge relates to the large productivity gap of its private sector relative to its peers, which is constraining the demand for better-paying jobs and income opportunities. Peru’s low aggregate productivity stems in part from substantial misallocation of capital and labor as its more productive firms do not necessarily hire more workers or invest more.The Systemic Country Diagnostic (SCD) prioritizes policy constraints that have the greatest impact on Peru’s structural challenges of reducing the large spatial disparities and boosting private sector productivity. The SCD uses the following selection criteria to identify the constraints with the largest impact on achieving shared prosperity going forward. First, it identifies constraints that significantly affect one or both of the two main structural challenges. Second, it identifies policy constraints that present synergies to overcome these structural challenges. Third, it identifies constraints that support the sustainability of addressing Peru’s structural challenges. Applying the three criteria described above, the SCD identifies a set of constraints that are pivotal to address Peru’s two main structural challenges and should thus be the focus of policies in coming years. 2017-04-13T22:08:34Z 2017-04-13T22:08:34Z 2017-02 Report http://documents.worldbank.org/curated/en/919181490109288624/Peru-Systematic-Country-Diagnostic http://hdl.handle.net/10986/26376 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Systematic Country Diagnostic Latin America & Caribbean Peru |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
STRUCTURAL TRANSFORMATION CHALLENGES POVERTY REDUCTION INCLUSION SHARED PROSPERITY ECONOMIC GROWTH ECONOMIC OUTLOOK SUSTAINABILITY INSTITUTIONAL FACTORS PRIORITIES HUMAN CAPITAL |
| spellingShingle |
STRUCTURAL TRANSFORMATION CHALLENGES POVERTY REDUCTION INCLUSION SHARED PROSPERITY ECONOMIC GROWTH ECONOMIC OUTLOOK SUSTAINABILITY INSTITUTIONAL FACTORS PRIORITIES HUMAN CAPITAL World Bank Group Peru Systematic Country Diagnostic |
| geographic_facet |
Latin America & Caribbean Peru |
| description |
Peru has been one of the most prominent
performers in Latin America in the last 25 years. Peru is
characterized by a complex and diverse geography that holds
wealth in natural resources and several spatial development
challenges.Peru has a remarkable cultural heritage and rich
ethnic diversity. Peru’s geography, natural endowments, and
diverse population have shaped its unbalanced economic
development.Geography and resource abundance have thus led
to a spatial concentration of economic activities and
opportunities, creating large disparities in development
across the country’s territory and its population groups.The
virtuous cycle of growth and shared prosperity can be
explained in large part by a combination of two main forces:
favorable exogenous conditions and successful macro
structural reforms.The new headwinds indicate that the past
virtuous cycle of growth and shared prosperity may have
reached its limit.These new headwinds highlight two
structural challenges that have emerged from Peru’s specific
endowments, and that constrain the opportunities for income
growth of the bottom 40 percent. First, the persistence of
large spatial disparities in development consistently
undermine the ability of certain population groups,
particularly indigenous and Afro Peruvians, from overcoming
poverty. Moreover, the capital-centric development model
contributes to imbalances within the urban sector.Peru’s
second structural challenge relates to the large
productivity gap of its private sector relative to its
peers, which is constraining the demand for better-paying
jobs and income opportunities. Peru’s low aggregate
productivity stems in part from substantial misallocation of
capital and labor as its more productive firms do not
necessarily hire more workers or invest more.The Systemic
Country Diagnostic (SCD) prioritizes policy constraints that
have the greatest impact on Peru’s structural challenges of
reducing the large spatial disparities and boosting private
sector productivity. The SCD uses the following selection
criteria to identify the constraints with the largest impact
on achieving shared prosperity going forward. First, it
identifies constraints that significantly affect one or both
of the two main structural challenges. Second, it identifies
policy constraints that present synergies to overcome these
structural challenges. Third, it identifies constraints that
support the sustainability of addressing Peru’s structural
challenges. Applying the three criteria described above, the
SCD identifies a set of constraints that are pivotal to
address Peru’s two main structural challenges and should
thus be the focus of policies in coming years. |
| format |
Report |
| author |
World Bank Group |
| author_facet |
World Bank Group |
| author_sort |
World Bank Group |
| title |
Peru Systematic Country Diagnostic |
| title_short |
Peru Systematic Country Diagnostic |
| title_full |
Peru Systematic Country Diagnostic |
| title_fullStr |
Peru Systematic Country Diagnostic |
| title_full_unstemmed |
Peru Systematic Country Diagnostic |
| title_sort |
peru systematic country diagnostic |
| publisher |
World Bank, Washington, DC |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/919181490109288624/Peru-Systematic-Country-Diagnostic http://hdl.handle.net/10986/26376 |
| _version_ |
1764461829655887872 |