MercoPress. South Atlantic News Agency

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  Forgetit87

  Peru has the fastest growth numbers in all of Latin America. And yet, García is the South American president most hated by his own people. Unemployment is currently at 7.5%. That is not high for a Latin American country, but is low to an economy of such vigour.

  Sep 10th, 2010 - 03:17 pm - Link - Report abuse 0
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  Nicholas

  Forget, I was in Lima in June, was not only freaking cold for me, but it was interesting to see how I could only see and feel the economic growth in certain areas of Lima (Port of callao + airport, Miraflores and San Isidro). Peru's economy is similar to Chile's economy, but Peru is more diverse. Anyway Outside Lima, it's like their is no economic growth, as if it doesn't happen, like up north Trullio. The poverty there is enormous and unemployment is way higher there than you think. Informal economy is big and mainly in the Lima area, where the economic boom is for a high percentage concentrated. That shows, something isn't working well. On of the important things they should do is (just like in Brazil and many other nations), reform the tax code and become more flexible. Alan Garcia in his latest presidential speech in of July 28 (their celebration of independence day) on TV, what I watched and with help of a translator understood, he mentioned it, but acknowledged he failed to implement it during his years in office. Their backwards tax system is a burden for the people, who cannot escape the informal economy. Sounds familiar to you?

  Sep 10th, 2010 - 05:11 pm - Link - Report abuse 0
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  JoseAngeldeMonterrey

  What strikes me mostly is this obsession with Argentina from Forbes, FT, the economist and other “prestigious” financial magazines.
  
  I was just looking at an interesting report about Latin America at the Economist called So near and so far (http://economist.com/node/16964114), part of a more comprehensive report on Latin America on account of our bicentenial celebrations.
  
  Oddly enough, the article fails to mention Argentina one single time. It mentions Brazil, Mexico, Peru, Colombia, etc.
  
  But not the third largest economy in Latin America and one with one of the highest gdp per capita in the region.

  Sep 10th, 2010 - 05:12 pm - Link - Report abuse 0
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  Forgetit87

  @Nicholas
  Very informative, thanks. It's important to notice that 27% of the Peruvian population live in Lima.
  
  On Peruvian geography, I don't know much. But in sheer exercise in imagination, I would speculate the following: that, save Lima and neaby areas, the rest of the country is barely populated, ruralized or yet covered with dense forests. Therefore, those who live nearby Lima, go work, or seek work, in that city - one of the few development poles in the country. Those who wither live far from the city, or do not have the means to go there, suffer either from unemployment or from sub-employment.
  
  @José
  Agreed. And the Argentina case would be of special interest. Since 2003, that country has shown one of the highest growth number in the hemisphere, and this shortly after having escaped from one of the greatest economic crises in the last 100 years. Those journals' attitude, in my view, is due to two facts: 1 - that Argentina has resumed growth after breaking with IMF-advised policies, something that discredits a powerful orthodox economic institution; 2 - the economic policy followed by that country's leadership, a policy that emploies large state intervention and protectionism. And that, too, discredits the orthodox dogma generally spoused by those journals.

  Sep 11th, 2010 - 01:00 pm - Link - Report abuse 0
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