Peru

This report compiles comparable tax revenue statistics over the period 1990-2020 for 27 Latin American and Caribbean economies. Based on the OECD Revenue Statistics database, it applies the OECD methodology to countries in Latin America and the Caribbean to enable comparison of tax levels and tax structures on a consistent basis, both among the economies of the region and with other economies. This publication is jointly undertaken by the OECD Centre for Tax Policy and Administration, the OECD Development Centre, the Inter-American Center of Tax Administrations (CIAT), the Economic Commission for Latin America and the Caribbean (ECLAC) and the Inter-American Development Bank (IDB).

Many Latin American countries have experienced improvements in income over recent decades, with several of them now classified as high-income or upper middle-income in terms of conventional metrics. But has this change been mirrored in improvements across the different areas of people’s lives? How’s Life in Latin America? Measuring Well-being for Policy Making addresses this question by presenting comparative evidence for Latin America and the Caribbean (LAC) with a focus on 11 LAC countries (Argentina, Brazil, Chile, Colombia, Costa Rica, the Dominican Republic, Ecuador, Mexico, Paraguay, Peru and Uruguay). Spanning material conditions, quality of life, resources for future well-being, and inequalities, the report presents available evidence on well-being both before and since the onset of the pandemic, based on the OECD Well-being Framework. It also identifies priorities for addressing well-being gaps and describes how well-being frameworks are used in policy within Latin America and elsewhere around the world, providing lessons for governments on what is needed to put people’s well-being at the centre of their action. The report is part of the EU Regional Facility for Development in Transition for Latin America and the Caribbean.

While COVID 19 has hit Peru particularly hard, with about 1.4 million cases as of March 2021, the pandemic further emphasised the importance of water and sanitation for health, the environment and the economy. The country is not yet on track to meet the targets of SDG 6 'Clean water and sanitation' by 2030, with 3 million Peruvians (9.2% of the population) lacking access to water services and 8.2 million Peruvians (25.2%) lacking access to sewerage services, and a large urban rural divide. In addition, between 2000 and 2020, floods affected an estimated 4.43 million people, while inadequate management of solid waste and some economic activities are amongst the causes of water pollution, leading to severe public health issues, and social conflicts. In the face of climate change and demographic growth, strengthening water governance in Peru is key for long term water security improvements. The report provides an analysis of water governance in the country and policy recommendations to: strengthen the multi sectoral approach to water; improve the use of economic instruments to protect and sustainably use water resources, its sources and related ecosystem services; and strengthen regulatory conditions to improved access to safe drinking water and sanitation in urban and rural areas.

To meet their policy objectives, regulations must be accompanied by a carefully designed and well-implemented enforcement strategy, including inspections. This report provides an assessment of the enforcement and inspections strategy in the environmental sector in Peru along with recommendations to strengthen this strategy. The report evaluates the policies and legal framework of the Environmental Evaluation and Enforcement Agency of Peru, as well as its practices and the resources employed in enforcement and inspections activities. It also offers policy options to improve performance. The benchmark for the comparative analysis is the OECD Regulatory Enforcement and Inspections Toolkit. Using a checklist of 12 criteria, this Toolkit provides a simple tool for assessing the inspection and enforcement system in a given jurisdiction, institution or structure.

Countries are faced with the growing challenge of managing increasing risks from climate change and climate variability, putting development and the achievement of the Sustainable Development Goals at risk. The adoption in 2015 of the Sendai Framework for Disaster Risk Reduction and the Paris Agreement on climate change provides a clear mandate for increased coherence in countries’ approaches to climate and disaster risk reduction. Countries increasingly recognise the benefits of improved coherence between the two policy areas, exemplified by the number of countries that either have developed joint strategies or put in place processes that facilitate co-ordination. Informed by the country approaches of Ghana, Peru and the Philippines, in addition to a review of relevant literature, this report examines the potential for increased coherence in approaches to climate change adaptation and disaster risk reduction across levels of government and sectors. It identifies ways in which government officials, development co-operation and other stakeholders can support efforts to further enhance coherence between the two policy areas, not only in the three case study countries, but also those in other countries as well as providers of development co-operation.

The Environmental Performance Review programme of the Organisation for Economic Co-operation and Development (OECD) provides independent assessments of countries’ progress in achieving their domestic and international environmental policy commitments, together with policy-relevant recommendations. The reviews are conducted to promote peer learning, enhance governments’ accountability to each other and to the public, and to improve countries’ environmental performance, individually and collectively. The OECD has been conducting these reviews since 1992, supported by a broad range of economic and environmental data. Each cycle of the Environmental Performance Reviews covers all OECD member countries and selected partner countries. The most recent reviews include: Colombia (2014), Spain (2015), Brazil (2015) and Chile (2016). The Economic Commission for Latin America and the Caribbean (ECLAC) has promoted environmental reviews in Latin America and the Caribbean, in cooperation with the OECD, and has undertaken similar assessments in the states of Amazonas and Acre in Brazil. Part I. Progress toward sustainable development Chapter 1. Background and key environmental trendsChapter 2. Policy-making environmentChapter 3. Economy and the environmentChapter 4. Society and environmentChapter 5. International co-operation and commitments Part II. Environmental quality of life Chapter 6. Air quality managementChapter 7. Management of waste and chemicalsChapter 8. Water resourcesChapter 9. Biodiversity Part III. Use of natural resources base Chapter 10. Farming and forestryChapter 11. FisheriesChapter 12. Mining sector Annex I: Selected Data