An interesting article on what Peru has done well,
And yes, Peru’s recent economic burst can be attributed to high commodity prices and massive Chinese spending. But herein lies the kernel of Peru’s success. Institutions and reforms were implemented prior to the commodity boom, ensuring Peru could reap the full benefit of the price surge.
A rigorous programme of trade liberalisation and business friendly policies, including a complete overhaul of the mining sector in the early-2000s, helped boost investments and exports of copper and iron ore. Strengthening crucial institutions such as the tax authority and the regulatory regime have institutionalised reforms, encouraging economic diversity and deepening accountability.
The next wave of sectoral reform – following mining – is already under way in agriculture. This has spurred widespread innovation and has transformed a country of subsistence farmers known for its discovery of the potato into a globally competitive agribusiness. Peru is the world’s leading exporter of asparagus, the second largest exporter of avocados and a major producer of coffee, grapes and a wide range of other fruits and vegetables. Agricultural exports of Peru, a nation of 31-million, totalled nearly $6-billion in 2016. By comparison, Uganda’s agriculture exports, making up 80% of its total exports, were just $1.8-billion.
Read the whole thing.