Peru: Economic Miracle or Just a Mirage? Peru is a country recognized internationally for its deep history and lavish resources – a country known for its agriculture, precious metals, and diverse ecology. However, Peru’s complicated history, littered with economic turmoil and government turnover, has prevented the country from unlocking its full potential. In Peru: Economic Miracle or Just a Mirage?, Richard Vietor, Fernando D’Alessio, and Ricardo Pino explore Peru’s strength and weaknesses to outline 12 key recommendations through which Peru can become a developed nation. These recommendations can be consolidated into three key ideas: governmental structure reform, infrastructure development, and business policy reform. However, focusing efforts primarily on business policy in the short-term would allow the Peruvian government to gain the economic independence to finance further change.…show more content… Part of the reason that foreign companies are unwilling to invest in Peruvian businesses is due to the inequity that exists amongst rich and poor in the country. Throughout Peru’s history, ranging from the early days under the Spaniard conquests, several attempts have been made to reduce the wage gap. From General Juan Velasco’s attempt to establish agrarian reform by expropriating land and giving to peasants to Humala’s Qali Warma initiative to feed poor children attempting school, Peru has been unable to find a solution to creating a more equitable economy. As a result of the inequality, citizens have been forced to create an ‘informal underground economy’ which relies heavily on small businesses. This market employees over 63% of the country’s workers and accounts for 19% of the country’s total
