The key reform that has made all this possible is the opening of the economy, which until 1990 had very high tariffs designed to protect local industries.
Peruvian journalist Jaime Althaus documents the effects of the opening in his 2007 book (Spanish only) titled "The Capitalist Revolution in Peru." Far from "deindustrializing" the country, Mr. Althaus argues, trade liberalization has strengthened Peruvian manufacturing. Under high tariffs, the industrial sector served mainly as an auto and electronics assembler, using inputs from abroad. But when protection ended, local manufacturing began to discover its comparative advantages.
There were plenty. High growth rates – averaging 11% a year from 1990-2002 – have occurred in sectors that make china, porcelain, knitted fabrics, plastic products and basic chemicals, to mention a few.
The story of the "cluster" of small metallurgical companies that has emerged in Lima is especially compelling. In recent years, these entrepreneurs have been competitive in bidding for work that was previously dominated by important international firms. They have also become exporting powerhouses.
May 5, 2008
Como diría El Jefe, qué envidia que da: Anastasia on Peru
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Es la misma historia de siempre, pasó en México con el NAFTA y en incontables casos más. El problema es que para satisfacer el ego desarrollista de muchos países no basta con industria competitiva. Tiene que ser de la automotriz, electrónica, textil aunque sea no competitiva.
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