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Evolution of Peru’s Economy: 1950–2007

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ust like the rest of the countries in Latin America and the Caribbean (LAC), Peru has presented two development patterns clearly defined by the set of economic policies implemented in their support. These economic policies include the open economy model, as implemented in Peru in the period under analysis—1950–1961—, the import substitution model in the period 1962–1990 and, again, back to an opening model from 1991 to date. To many countries in the region, this has been a winding road that, in many cases, has come hand in hand with cyclic economic crises. Today, most LAC countries recognize the need to become competitively integrated into the international markets; even though they all appear to be marching in the same direction, they have done so at different paces. 1.1. Open Economy Model: 1950–1961 Up to the early 1960s, the privileged model in the Peruvian case was an open economy model, as evidenced by Peru’s active involvement in the General Agreement on Tariffs and Trade (GATT) since its becoming a contracting party in 1951.1 However, it is necessary to point out that this model did not get to consolidate into a proper development model, as it lacked other elements or policies typical of a strong State, such as more active social policies or investments in physical infrastructure for Peru’s integration. Until the early 1960s, the Peruvian economy was distinguished by a small State, too small perhaps to step up to the challenges created by the social changes taking place back then, such as demographic growth, migration from the country to the city, the limited social and physical integration in Peru, and the emergence and growth of new sectors such as the manufacturing industry and the resulting expansion of a working class with social and political interests and aspirations. The agricultural sector, with concentrated land ownership, also had its social demands aimed at achieving a better economic position for a dynamic and growing sector, as was the agricultural economy back then. Until the early 1960s, the economic dynamics were characterized by purely private business activity, without a significant presence of state companies—with the exception of certain activities such as the State salt monopoly or the State coca monopoly. Peru’s insertion into the international 1

Torquay Round 1950–1951

mobilizing aid for trade: focus on latin america and the caribbean: proceedings of the regional r...  

this report was prepared by the integration and trade sector (int) as a contribution to the regional meeting on mobilizing aid for trade: la...

mobilizing aid for trade: focus on latin america and the caribbean: proceedings of the regional r...  

this report was prepared by the integration and trade sector (int) as a contribution to the regional meeting on mobilizing aid for trade: la...

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