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OECD Territorial Reviews: Peru 2016

image of OECD Territorial Reviews: Peru 2016

The economic performance of Peru in recent times has been impressive. There is now a transition underway as commodity prices fall, and the key challenge for Peru is how to improve productivity and maintain this growth trajectory. Peru is a territorially diverse country and addressing these challenges will require policies that are designed for the specific needs of different cities and regions. The importance of regional policies is particularly important for the case of Peru. Within the OECD only four countries have a larger land mass. The physical geography of the country is shaped by a thin coastal region, the Andes and the Amazon forest in the interior. These different areas are not well connected and have vastly different levels of service provision and infrastructure. The report sets out how regional policies can be improved to address these challenges. This includes ensuring the preconditions (such as revenues, capabilities and coordinating mechanisms) are in place for decentralisation to work. Lifting national productivity will largely depend on well-functioning cities. The report also includes recommendations for how Peru can develop a comprehensive approach to urban policy, including enhancing linkages with rural areas.

 

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Implementing a regional approach to national economic development

This chapter discusses how to implement a regional approach to sectoral and innovation policies. The chapter is divided into four main parts. The first section focuses on assessing regional policies in Peru, including alignment with the contemporary OECD approach to regional policy. The second section discusses macroeconomic policies and their impacts on regions, including an overview of the productive fabric of the country. The third section discusses the importance of integrating sectoral and innovation policies with a regional agenda. Finally, the fourth section draws some conclusions and sums up key recommendations.

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