Peru Economic Analysis

2851 words - 11 pages

Overview "At the end of the 1960's, novelist Mario Vargas Llosa asked the question, "En que momento se habia jodido el Peru?" (When was Peru screwed?). Ironically, similar sentiments had been expressed a hundred years before when fellow countryman Manuel Gonzales Prada observed, "el Peru es organismo enfermo: donde se aplica el dedo brota pus" (Peru is a sick body: wherever one presses a finger, pus comes out)". (1) The sentiments of these two Peruvians accurately describe the economic history of Peru. Peruvian history has been a chaotic tale of a country trying to overcome Spanish rule, revolts for independence, succession of rulers, liberal reforms, military rule, returns to democracy, and periods of extreme inflation and economic hardship. (2) One of the major economic problems that Peruvians have faced throughout their economic history has been foreign ownership of their natural resources. Peru has been described as a beggar country sitting on a pile of gold. Natural resources are very abundant in Peru, but as a result of poor management, foreign countries have exploited Peru of its natural resources, and only a very small percentage of the native population have benefited. As a result, unequal distribution of income is another major problem in Peru. (3) Other problems that have devastated Peru are extreme government regulation, periods of hyperinflation, terrorism from in-country guerrilla groups, and a history of continued corruption in the politics of the country. (4) The high level of governmental regulation lead to high import tariffs, this, combined with the unstable conditions caused by guerrilla forces, resulted in foreign governments reluctant to invest directly into the economy of Peru. Hyperinflation has occurred twice in Peru history. Once in the Pacific War (1879-1883), the second under the mismanagement of President Alan Garcia (1985-1990) where inflation reached a rate of 2.2 million percent. (5) The effects of these economic and political problems are far-reaching and have had devastating effects on Peru's economic history.Despite Peru's poor economic track record, it remains a country that has abundant natural resources, and much to offer the international community. Major natural resources include: minerals, metals, petroleum, forests, and some of the best fishing waters in the world. Peru is also an agriculturally rich country. Coffee, cotton, cocoa, sugar, wool, potatoes, corn, and livestock, are the products most produced in the country. Peru's major trading partners are the United States, Japan, and the European Union. Peru's exports total 6 billion annually. The make-up of its exports is: petroleum, copper, silver, gold, zinc, lead, fishmeal, coffee, sugar, cotton, and canned and frozen fish. While Peru has abundant natural resources, industry accounted for 22% of GDP in 1997. The types of industry in Peru include: mineral processing, oil refining, fishmeal, textile, food processing, light manufacturing, and automobile...

Find Another Essay On Peru Economic Analysis

Exotic Adventures, Inc. - The Amazon Voyage

1392 words - 6 pages Running head: EXOTIC ADVENTURES, INC. CASE ANALYSIS 1 PAGE \* MERGEFORMAT 6 Running head: EXOTIC ADVENTURES, INC. CASE ANALYSIS Exotic Adventures, Inc.: The Amazon Voyage Case AnalysisCase SynopsisThe following is an analysis of the case, Exotic Adventures Inc.: The Amazon River Voyage. It details why tour operator, Exotic Adventures, Inc. (EAI) should proceed with their tours on the Amazon River between Brazil and Peru amidst concerns

Risk Analysis - economies of Central and South America.

2157 words - 9 pages The economies of Central and South America offer attractive business opportunities. However, these are accompanied by a set of risks, which businesses need to understand and manage effectively. In this paper we will discuss a business risk analysis of MBS Inc in the Venezuelan market.Taxation and Double Taxation Risks.The accounting standards adopted by The Republic of Venezuela coincide with International Accounting Standards (USDT, 2004). MBS

Ernesto Che Guevara: The Journey That Led to the Formation of a Revolutionary.

1735 words - 7 pages During the 1950's, Ernesto Che Guevara, a medical student, and his friend Alberto Granado, a biochemist student, took a motorcycle trip through Argentina, Chile, Peru, Columbia and Venezuela. Ernesto's adventures throughout South America led to his observations of different socio-economic classes throughout different South American countries revealing misery, oppression, and injustice affecting the lower class people; caused by the upper class

Security in the Andean region, diplomacy, post cold war transformations

4841 words - 19 pages today.Bolivar's notions of unity, common heritage, and collective action have been invoked to advance myriad schemes of economic and political integration in Latin America. However, although not restricted to the Andean region, Bolivarian ideals have played a particularly important role in subregional processes of interaction and identity formation (we may note Bolivar's protagonism in the liberation of Colombia, Venezuela, Peru, Ecuador and

Environmental Analysis: Argentina

1642 words - 7 pages determine if an expansion is worth the time, money, and effort.Region Analysis - South AmericaThe South America region consists of the following countries Ecuador, Colombia, Venezuela, Guyana, Suriname, Peru, Brazil, Bolivia, Paraguay, Chile, Uruguay, and Argentina. South America, the world's fourth largest continent, encompasses an area of 6,880,700 square miles. The continent's two most prominent geographic features are the Amazon River Basin

Illicit Trade and Drug Trafficking Proving to be a Major Problem

1328 words - 5 pages Illicit Trade and Drug Trafficking Proving to be a Major Problem Drug trafficking and illicit trade have proven to be major problems that the international community face as it enters into the twenty-first century. Currently the illegal drug trade market is one of the largest sectors of the modern global economy. Because of this fact, the drug trade is deeply rooted in many nations economic and social cultures, which makes it very difficult

Base of the Pyramid in Latin America

4102 words - 16 pages Lima 33, Peru Abstract Based on qualitative research, the author studied the experiences of eight firms, each one operating in a specific country in Latin America, among Peru, Mexico, Ecuador, Colombia, Chile, and Argentina, from different industries and at different stages of implementation on their Bottom of the Pyramid incursions. Through an analysis, the author uncovers what types of innovation were best to reinforce the value propositions to

Globalization and International Commerce

1700 words - 7 pages Economics of Fair Trade: a guide in plain English [online]. Newcastle Fairtrade Partnership. Available at: [Accessed 11th December 2013] Mohan, S., 2010. Fair Trade Without the Froth: A Dispassionate Economic Analysis of ‘Fair Trade’ [online]. London: Institute of Economic Affairs. Sidwell, M.,2008. Unfair Trade. [online]. London: Adam Smith Institute. Available at [Accessed 17th Feb 2014]. Sloman, J & Wride, A (2012). Principles of Economics. 8th ed. Essex: Pearson Education Limited.

Democracy in politics.

9378 words - 38 pages reliance helped Japan's economy to boom for a long time, it also created a very uncompetitive domestic economy that lacked dynamism. The increasingly competitive world market has left Japan feeling inefficient and lagging. Thus, it cannot bring itself out of its economic slump.·Complex patterns of regime change in Latin America were evident between 1970 and 1995.·By 1979 Brazil, Uruguay, Chile, Argentina, Paraguay, Bolivia, Peru

intrenational relations

2304 words - 9 pages elements of development, security and rights. .Thus the individual is at the center of analysis. It therefore seeks to protect the people from economic, food , health , environmental , personal , community and political security. Multilaterism can be defined as the practice of coordinating national policies in groups of three or more states through arrangements by means of institutions (Robert O 1990).Multilateral approach to health security has

Latin American Immigrants

1152 words - 5 pages -paying work for a while than to become part of U.S. society. …Many Latinos are now coming to work for short periods of time, make enough money to send home to Peru or El Salvador, perhaps work until a new house is built, and then return to their families (Garland, 2007).With so many Latino's illegally immigrating to the U.S. and playing the money market scheme then returning home with U.S. earned money in hand, it makes it hard on

Similar Essays

Quinoa Has Lead To A Major Economic Evolution In Peru

1424 words - 6 pages variety of civilizations, whereas it is in modern times Quinoa is a product from the Andes Mountains that is a gluten free grain (Cooking with Quinoa). In modern times it has been a major economic boost for Peru, because they have exported so much of it that the income rate of cash has gone up significantly, and changed Peru’s economy drastically. Which is a major food product in Peru, and has boosted their economy, around $23 million in one year

Conflicting Narratives: The 1995 Peru Ecuador Conflict Nationalism Gone Awry?

2025 words - 8 pages armed hostilities with Peru? What conditions were at play, that turned otherwise harmless series of events into a 3 year war. This essay will begin by examining the potential explaining factors associated with individual, domestic and international levels of analysis. It will argue that domestic factors and nationalism in particular, played a decisive role in instigating, exacerbating and prolonging the conflict between Ecuador and Peru. Next

E Marketing Plan For Buena Vista Bungalows

6553 words - 26 pages ……………………………………….21Appendices C- Tax in Peru………………………………………………………22Appendices D- SWOT analysis………………………………&hellip

Treaty Between Bolivia And Chile Essay

1839 words - 7 pages , principally in the south American region.The following analysis will attempt to objectify the boundary conflict between Bolivia and Chile. Although the Bolivian claim of right to access coasts that have been lost to Chile for more than one hundred years, the new ideals of continental integration and the desire to create more solid routes of economic channels, Bolivian claims of sovereign access to the Pacific have gained steam in International