Peru

Skills are central to Peru’s future prosperity and the well-being of its people. Peru's economic development to date has largely been driven by abundant natural resources and high commodity prices in the global market. The goal for the future is to ensure productive diversification, expand export capacity and take part in global value chains with more complex goods and services.  Boosting the development, activation and use of skills will be key to achieving these ambitions. As demonstrated by the Survey of Adult Skills (PIAAC), which Peru is currently deploying, higher skills levels are not only associated with higher productivity and earnings, but also with other important outcomes, such as better health, higher levels of trust and greater propensity to contribute to society through volunteering.   The OECD Skills Strategy Diagnostic Report: Peru sets out nine skills challenges for Peru. These challenges were identified through two interactive workshops with stakeholders as well as through analysis of the OECD and other data sources. The first six challenges refer to specific outcomes across the three pillars of developing, activating and using skills. The next three challenges refer to the 'enabling' conditions that strengthen the overall skills system.

The Global Forum on Transparency and Exchange of Information for Tax Purposes is the multilateral framework within which work in the area of tax transparency and exchange of information is carried out by over 130 jurisdictions which participate in the work of the Global Forum on an equal footing. The Global Forum is charged with in-depth monitoring and peer review of the implementation of the standards of transparency and exchange of information for tax purposes. These standards are primarily reflected in the 2002 OECD Model Agreement on Exchange of Information on Tax Matters and its commentary, and in Article 26 of the OECD Model Tax Convention on Income and on Capital and its commentary as updated in 2004, which has been incorporated in the UN Model Tax Convention. The standards provide for international exchange on request of foreseeably relevant information for the administration or enforcement of the domestic tax laws of a requesting party. 'Fishing expeditions' are not authorised, but all foreseeably relevant information must be provided, including bank information and information held by fiduciaries, regardless of the existence of a domestic tax interest or the application of a dual criminality standard. All members of the Global Forum, as well as jurisdictions identified by the Global Forum as relevant to its work, are being reviewed. This process is undertaken in two phases. Phase 1 reviews assess the quality of a jurisdiction’s legal and regulatory framework for the exchange of information, while Phase 2 reviews look at the practical implementation of that framework. Some Global Forum members are undergoing combined – Phase 1 plus Phase 2 – reviews. The ultimate goal is to help jurisdictions to effectively implement the international standards of transparency and exchange of information for tax purposes.

Vocational education and training (VET) programmes are facing rapid change and intensifying challenges. How can employers and unions be engaged?  How can workbased learning be used?  How can teachers and trainers be effectively prepared? How should postsecondary programmes be structured? The country reports in this series look at these and other questions. They form part of Skills beyond School, OECD policy reviews of vocational education and training.

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.
 

Peru has experienced significant improvements in economic growth, well-being and poverty reduction since the introduction of macroeconomic reforms, economic openness and more effective social programmes in the 1990s. However, the country still faces structural challenges to escape the middle-income trap and consolidate its emerging middle class. This report provides policy actions to tackle the main bottlenecks to boost inclusive development and well-being in Peru. In particular this report presents an in-depth analysis and policy recommendations to boost economic diversification and productivity, improve connectivity and reduce informality. Policy actions in these areas demand better institutions and improvements in areas and markets, including research and development and innovation, fiscal policy, education and skills, logistics and transport infrastructure as well as labour and product markets.

The equal inclusion of women in economic life is a key driver of economic growth throughout the world, including the Pacific Alliance countries of Chile, Colombia, Mexico and Peru. Talent is lost, and future growth suffers, when women do not have the same opportunities as men to reach their full potential in the labour market. All countries of the world have work to do to advance the equality agenda, and Chile, Colombia, Mexico, and Peru have much to do. While girls and women in the Pacific Alliance are progressing on the path to gender equality and inclusive growth, significant roadblocks remain.