Now the ‘Developed’ countries are facing the consequences of their economic extravagances some countries like Peru are doing well. The Economy of Peru is growing faster than any in South America at around 9%.
The Peruvian Economy is benefitting from strong exports with trade agreements with the USA, Canada and China. Peru exports a lof of minerals, and agricultural produce such as the asparagus in many UK supermarkets and now with a better political situation foreign companies are investing as well. Other products include coffee, cotton, rice, potatoes, plantains and fish. Exports grew by 25% in 2007.
The Peruvian economy has been very bad in the past. During the 1970s many foreign companies were seized, there was protectionism, price controls and many succesful companies were nationalised and became inefficient. Then the terrorism of the Shinig path caused terrible disruption and destroyed communities and made people flee towards the cities leaving those behind in poverty. In the 1990s this began to change.
With this increase in business activity unemployment is falling and there are many talented Peruvians available for building businesses, these people cannot always find suitable work so you can find taxi drivers with a degree but for investors this means they will have a capable work force that is keen to work. The Peruvian government is also encouraging Peruvians who are living abroad to go back to Peru and start businesses with tax incentives and grants.
Peru also benefits from its investments in hydroelectricity, because of its many mountains dams have been built to generate power and provide Peru with neary 75% of it’s electricity which also helps Peru to be more self sufficient. The rest comes maninly from fossil fuels as Peru has oil and also imports fossil fuels, but there is no nuclear power. With its long coastline wind and wave power may be possible in the future.
So even though there is still some bad poverty in some of Peru’s remote communities and around the cities, the future looks good and the ‘crisis’ is not something that you will hear much about in conversations. Peru has got a positive attitude despite it’s problems and a ‘we can do it’ spirit. Maybe that attitude would help here in the UK as well.
Tags: Economy