According to Jesús Salazar Nishi, president of the Institute for Sustainable Industrial Development (IDIS), the real obstacle to Peru’s growth does not lie in a lack of economic resources, but in the inefficiency of the state in managing public spending. During an analysis of government plans, Salazar Nishi stated that institutional weakness and the absence of a productive strategy limit investment and foster illegal economies.
IDIS points out that although billions have been transferred in royalties and taxes to regional governments, the lack of technical capacities prevents the proper use of these funds. “Peru does not need more laws, but a state that stops being an obstacle and acts as a strategic partner,” Salazar Nishi expressed.
Political instability also affects investment, as a volatile environment increases risk and discourages entrepreneurs. “Private investment does not move with good intentions, but with predictability,” he explained. Meanwhile, informality grows as companies delay hiring due to uncertainty.
In this regard, the president of IDIS concludes that the country faces the risk of getting trapped in the middle-income trap, where economic growth stagnates and is limited to the export of raw materials, while natural resources are not adequately utilized.
