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Economic growth matters, but it is just one facet of development. Policy makers should focus their attention on ensuring that their country’s development path is sustainable and that the lives of their citizens improve. This requires reconciling economic, social and environmental objectives.

OECD Development Pathways is a series that looks at multiple development objectives beyond an exclusive focus on growth. It recognises well-being as part and parcel of development and helps governments identify the main constraints to more equitable and sustainable growth by undertaking a multi-dimensional country review (MDCR). Governments trying to achieve economic, social and environmental objectives need to understand the constraints they face and develop comprehensive and well sequenced strategies for reform that take into account the complementarities and trade-offs across policies. The MDCR methodology is based on quantitative economic analysis, as well as qualitative approaches including foresight and participatory workshops that involve actors from the private and public sectors, civil society, and academia.

The MDCRs are composed of three distinct phases: initial assessment, in-depth analysis and recommendations, and implementation of reforms in the identified key areas. This approach allows for a progressive learning process about the country’s specific challenges and opportunities that culminates in a final synthesis report to inform reforms in the country.

The MDCR of Peru – Volume 1, Initial Assessment was launched in October 2015 in Lima. The second volume, entitled In-depth Analysis and Recommendations, focused on three key constraints for inclusive development in Peru, namely productive diversification, the improvement of transport connectivity, and the formalisation of jobs and economic activities. It was launched in October 2016 in Lima. This third volume, From Analysis to Action, is based on the recommendations presented in the second volume, and presents the conditions and actions for making reform happen. This MDCR is designed to help Peru formulate development strategies, and identify and support the policy reforms needed to achieve further sustainable and inclusive development. This review comes at a time when Peru aims to boost inclusive growth and when policy action is needed to expand socio-economic benefits across all economic sectors, regions and households.

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