Population Growth In Peru

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Population growth in Peru


The Peruvian economy has had an outstanding growth in recent years, which has allowed substantively to relieve the living conditions of millions of people., Growth has been mainly based on an expansion of private investment in a stable macroeconomic environment, with reduced inflation rates, which has allowed access to external financing sources in favorable conditions.

 The context of this expansion has also been characterized by an improvement in the terms of exchange, thanks to the increase in international prices of the main export products. The highest availability of currencies has made it possible for other sectors with greater impact on employment, such as construction and services, can expand without causing imbalance in the balance of payments.

However, the recovery of the Peruvian economy has not yet achieved the conditions required to achieve sustained dynamic growth that place it in a convergence trajectory with the welfare levels achieved by developed countries. If we consider the progress achieved in several countries in the region, the Peruvian economy is still comparatively lagged with several critical dimensions, especially in access to quality services, especially in education, health, security and in the development of its capacities of its capacities ofInnovation and technological progress.

This is expressed in the limited participation of Peru in the world manufacturing trade. In terms of equity, it can be noted that economic growth has not yet benefited the majority of Peruvians. Workers’ income has remained stagnant or have grown at an even lower pace and more than half of the rural population survives below the poverty line. This has limited the expansion of the domestic market and the increase in general well -being. In reality, economic growth has not generated sufficient sources of quality employment, in fact, open unemployment and sub -employment are still maintained at high levels. 


The recovery of the Peruvian economy is greatly explained by the exploitation of non -renewable resources, especially mining and that is why it cannot be sustained indefinitely over time. It is likely that new global growth patterns generate a growing demand for these resources and support their prices at a high level, stimulating higher investments in exploitation activities to identify and exploit new deposits. 

However, it is also true that the exploitation of these resources generates recurring tensions by threatening ecosystems and affecting other economic activities, especially agriculture, in a context characterized by an increasingly lower tolerance in new generations in the face of polluting activities.

In addition, the impact of mining production on national income has been limited due to excessively generous conditions in which they have been delivered to concessions and that most of the investment is of foreign origin, which is expressed in significant flows ofUtility remittances abroad. In this order of ideas it is appropriate to emphasize that one of the main restrictions on sustained growth of the Peruvian economy has been the low degree of diversification of its exports. 

This is explained by the specific endowment of natural resources, by some restrictions of the macroeconomic environment such as the appreciation of the exchange rate and the crisis of the educational system and the reduced levels of investment in science and technology. But it is also necessary to mention the absence of explicit and consistent industrial policy that guides the transformation of the economy into a direction that allows greater levels of well -being and quality of life for most citizens.

The term industrial policy will be used in its broader connotation, with reference to the process of productive development in general, the scope of industrial policies then includes not only manufacturing, but all those activities that allow creating economic value, including by the way processingof natural resources as well as a set various services that are previously classified as part of the tertiary sector and that today represent a significant proportion of the value generated in contemporary societies. 

Industrial policy is then intended to guide the process of transformation and development of an economy. Its starting point is the recognition that industrialization is essential to achieve development and that it is possible to act on this process in order to renew and strengthen the economic structure. 

According to Carl Marx in his "contribution to the criticism of political economy" we see that he argues that, in the social production of his life, men contract certain independent relations of their will, necessary, determined. These production relations correspond to a certain degree of development of their material producing forces.

It could be said that, in total of these relationships, the form of economic structure of society is the real basis on which a legal and political superstructure rises, and to which social and certain forms of conscience respond. The mode of production of material life determines, in a general way, the political and intellectual process of life. It is not awareness of the man who determines his existence, but his social existence that determines his conscience. 

It is also possible to appreciate how it describes that, when reaching a certain degree of development, the society’s producing forces enter into contradiction with the production relationship that exists then, or, in legal terms, with property relations within thewhich these producing forces have moved until then.

These relationships, which previously constituted the forms of the development of the producing forces become obstacles to these. And then an era of "the social revolution" was born. Here is the change of the economic base that ruins more or less superstructure. Consequently, of this fact and set of economic and social processes, and everything that has been created in the spiritual field or in the material are the result of the determining influence of economic factors.

In relation to our country, this process of change of structures, because the socio-economic level that prevailed in Peru until October 3, 1968, began to be broken under the impact of a progressive transfer of power from one class to anotherand a change in the property system. Certainly from a reduced plane the maximum decision power was unfortunately outside our country in the Centers of Great North American Investments.

In a broader framework of national reality, which still continues to this day and the characteristics of Peruvian society are known were the following: “A concentration of economic power in very small groups of society, a phenomenon that occurs in the concentration ofpolitical, social and cultural power, resulting from that concentration of economic power;a social marginalization as a counterpart of that concentration of power;a dependency for subordination of the national economic apparatus to foreign decisions centers;an increase in the distance between social groups, as a result of the concentration-marginalization and dependence of our country. 

These facts, which constitute a complete inter-relationship, have historically been brewing, and could not be overcome except through a radical change of the structure of the moment for another in which just justice, solidarity, sovereignty, full freedom,and a new social humanism. That is, a new change of structures that build a new society for Peruvians, a society in which the best economic levels open access to the world of culture, spirit and new values.

A society in which the State serves everyone equally within our society;a society capable of overcoming the deeply selfish root of individualism;A full participation society, in which the traditional marginalized social sectors have access to the different levels, where each woman and man abandons passivity and conformism and be able to fully assume the responsibility of handling each of the spheres of her life;In short, in which wealth and power are not a privilege of anyone and consequent. 

Natural resources have been a strategic factor in the long -term growth dynamics of the Peruvian economy throughout almost two centuries of republican life. The expansion and fall cycles described in classic texts, in these analyzes the rules of access and control of natural resources, which allows them to explain a good part of the changes distributed in the economic history of Peru. 

During the second half of the twentieth century, the economic sectors that depended in much of the natural resources have represented a little more of the ninety percent of the value of exports, during the recent international price boom, raising more than forty percent of theIncome tax.

It should be noted that the importance of natural resources is not only in the traditional export group, but also part and dominate the non -traditional export group. From the theoretical and methodological advances of the economy in environmental, sacrifices have been made to approach new national environmental accounts, such as the signaling of genuine savings forged by the World Bank in the late 1990s. 

Despite that these proposals are not yet being taken into consideration for the formulation of policies, their dissemination and debate has allowed to introduce into the political agenda the problem of the correct measurement of the sustainability of an economy, in particular the debates about the different formscapital are replaced or complementary to each other. The similarity between natural wealth and economic growth has gone hand in hand with great discussions in the field of literature.

Seeing it from the Peruvian case, from the long time we export minerals during the colony, passing through centuries of export, saltpeter, rubber and fishing to the great explosion of the extractive industries, represents a good example of the so -called “curse of theResources ”Where we not only have that the economy grows at a slower pace, but our natural wealth are also associated with distribution problems, macroeconomic volatility and soon dynamism of the domestic market.

To this great long -term phenomenon is added, in these last decades, the enormous challenges facing the economy to correctly internalize the social costs of pollution, especially from birth. Apart from the policy instruments that have been used to mitigate the disincentives inherent to an economy rich in natural resources, as well as to control the dreaded pollution and dangerous environmental degradation, the management of natural resources and the conservation of our own environmental quality is unquestionableThey play a great vital role in the long -term path of the Peruvian economy. 

Peru is a multicultural country, with various villages of different ethnic roots, each region has its own traditions and accumulated experiences of productive development and specialization, and disparities are observed in their economic performance and at the welfare levels of its citizens. The most depressed regions in terms of per capita income are located on the coast generally register greater dynamism. On the contrary, it is necessary to decentralize the formulation and execution of these policies according to the specificity of the regions and the content of the plans prepared in recent years.

Most of the investments has been directed to infrastructure of diverse type, mainly of transport, education, sanitation and agricultural. Unfortunately, there is still very little in the development of capacities, especially those required to raise the quality of basic services and investment decisions and to improve the management of sub -national governments, due in part to the restrictions imposed on economic growth. 

Cooperation between company does not always spring spontaneously, but it is essential for development for example to obtain certifications, brand records and technical standards required to access markets, to invest in local public goods and share efforts in innovation and innovation andThe dissemination of best practices, or to organize more efficiently the provision of the various business development services that companies require to be competitive.


If a person consumes an amount of a good today, it will have a certain utility;However, if he only knew that he will consume tomorrow, the utility will have to have a certain discount, and consumption was only the day after tomorrow;The utility would suffer this discount twice;In this way his problem would be to find a sequence of consumption that maximizes this sum of discounted profits.

The consumption trajectories are restricted, since given an initial capital, one part will be intended for consumption and the other part to investment to produce, and so on. If this is done for periods of time, the problem is called the T horizon, and if it was done without any restriction in time periods it would be called infinite horizon.

The consumed and investments behave intuitively in relation to the individual’s life, that is, if he has an initial stock and knew that he will live another period, he must reduce his amount of consuming and consequently invest in something more;This allows to generalize the existence of optimal policies on the infinite horizon regardless of the discount value. 

The "Inter temporary utility", a horizon value function, defines the competitive price system inheriting the same instantaneous utility characteristics. As a final result we can show that in a decentralized economy where individuals maximize their profits independently, there is a price system that supports it optimally, being equal to marginal utility, maximizing benefits and cleaning the market.   

Free Population Growth In Peru Essay Sample

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