Peru is a priority country of SECO’s economic cooperation and development. The economy has shown steady growth in recent years. Nonetheless, Peru still faces challenges such as socio-economic disparities, low competitiveness and weak state institutions. SECO’s main areas of support are the development of economic institutions, private sector competitiveness and access to basic public services.
Peru has introduced important economic reforms since the beginning of the millennium. During this time, per capita income grew by an average of 4% p.a. Peru has also managed to reduce poverty considerably given the considerable shortcomings in sectors such as rule of law or media freedom.
Further reforms needed in many areas
Despite such achievements, Peru continues to face serious challenges. Significant socio-economic disparities remain, particularly between rural and urban areas. A large informal economy, low productivity and red tape hinder greater competitiveness and sustainable economic growth. State structures need further strengthening in order to be able to deliver adequate public services. Moreover, while having integrated relatively well into international markets, Peru still relies mainly on commodity exports. Finally, Peru has a vast biodiversity, which is however under serious threat from climate change.
What are SECO’s objectives?
Inclusive economic institutions at a national and local level
SECO has successfully contributed to strengthening economic institutions at a national level. In recent years it has also focused on building capacities at the subnational level to spur local development. Moreover, it contributes to better coordination between institutions at the national, regional and local level.
A competitive private sector that creates more and better jobs
SECO pushes for policy reforms to improve the business environment for the private sector and the investment climate. Furthermore, SECO promotes the strengthening of selected value chains and supports an increase in the international competitiveness of Peru’s business sector.
Sustainable urban development
An important ingredient of sustained and regionally balanced economic growth is an integrated development of cities. Urban areas should have reliable infrastructure. SECO supports emerging medium-sized towns in their ability to provide basic public services, such as clean water, sanitation and waste management.
From 2017 to 2020, a total of some CHF 70 million is earmarked for SECO’s economic development cooperation with Peru.