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 new 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 is the second review, following that of Uruguay, to be undertaken by the OECD in Latin America. The MDCR of Peru – Volume 1, Initial Assessment was launched by the OECD Secretary-General in October 2015 and was the first report to be published as part of the OECD Country Programme with Peru. This second volume, In-depth Analysis and Recommendations, focuses on three key constraints for inclusive development in Peru, namely economic diversification and productivity, transport connectivity and informality.

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 the newly elected government of Peru faces the challenge to build on and accelerate the progress the country has achieved in recent years. While the recommendations are intended primarily to support public policy action by Peru’s national authorities, the findings are also useful for academics, the private sector and civil society.