The future of Peru, after a devastating natural disaster, seems clouded but, at the same time, optimistic. There’s a long way to go for it to regain stability but the government is committed to see this tragedy as an opportunity to strengthen their institutions and, even more, their economy. However, the commitment of the Peruvian government still depends on the success of “Invierte Perú”, the new public investment system.
“Invierte Perú” is a system that wants to improve the process of public investment through a more rigorous instrument. Not only it has the intention of improve planning with better parameters and studies, but it also seeks to have a tighter control on the functionality and execution of works on public infrastructure. At the moment, “Invierte Perú” is at an early stage and the government is still educating the civil servants on how the system works. However simple this process may seem, it is crucial for the reconstruction of Peru. Now, more than ever, works on infrastructure need to have a fast track that will accelerate its execution.
Now, why is it so important for the Peruvian government to have an expeditious and efficient rebuilding?
Before 2017, according to the Peruvian government, the fundamentals of the country’s economic growth were two: infrastructure and productivity. Now, they have added one more: reconstruction. Why? Because it promotes investment in infrastructure. Therefore, “Invierte Perú” is crucial.
Peru plans to have a GDP growth rate of 5% by 2018 and reconstruction has an important role for that to happen. This situation, although triggered by an immeasurable natural phenomenon, creates a political and economic opportunity like no other. Both the government and the general population understand that the country needs a more efficient and transparent investment system. It seems historically exceptional that the public servants of a Latin American country don’t have incentives to incur in corrupt activities. Even more, they have incentives to educate themselves about a system that –ideally– will be more productive and less corrupt.
Rebuilding Peru, however difficult it may be, will come with more than new infrastructure and, hopefully, more economic growth. It will come with transparency and better institutions.
LatinAmerican Post | Juan Sebastián Torres