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During the first day CADE UniversityPaola del Carpio, research coordinator for the Development Research Network (REDES), said that although Peru has achieved inflation below 3% at the level of Latin America over the past 20 years.not yet consolidated in competitiveness.
The specialist explained that over the past 20 years, various measures have been implemented, such as encouraging private investment, creating autonomy. Central Reserve Bankwhich in turn strove for the stability of the currency, this allowed inflation, which in the 1990s exceeded 2000%, to be reduced to 2.3% until 2020.
However, he explained that we have not been able to consolidate in competitiveness; that is, to produce more with less resources due to lack of labor protection, weak institutions, state inefficiency and corruption, which required the cost of several million soles, which was exacerbated by the pandemic.
Impact of the pandemic
“In a pandemic employment fell by 55% in metropolitan Lima aloneand the average income of a Peruvian decreased by 10%,” Paola Del Carpio explained.
She also explained that the current situation, which had a direct impact on prices, required low-income people to dedicate 53% of all their spending to buying food and 4 out of 10 households have minors who do not consume enough calories due to lack of household income.
What needs to be done?
To solve this problem, the expert considered that labor marketprovide social protection for workers and citizens in general, improve laws, encourage formalization and increase the production of small enterprises, which make up 95% of companies existing throughout the country, among other things.
Source: RPP
I am Dylan Hudson, a dedicated and experienced journalist in the news industry. I have been working for Buna Times, as an author since 2018. My expertise lies in covering sports sections of the website and providing readers with reliable information on current sporting events.