Transcript Peru

Peru
Andrew Schwartz
Stats
Geography
Schooling
Economy
Political System
Consumer spending
Labor laws
Politics
Trade
Future
Basic Info
Peruvian independence was declared in 1821 and succeeded in 1824
Period of military rule
Peru began democratic leadership in July 12, 1979
Republic of Peru
Capital is Lima
Official Languages Spanish and Quechua
President Ollanta Humala
Geography
Lowland coastal regions
Andes mountains
Amazon forests
Northern Tropical
Poor infrastructure
Minerals mined in the mountainous and coastal areas
coastal waters provide excellent fishing grounds
Economy reflects topography
Population
Size
30.2 million
1,285,216 sq km
43rd
20th
Average age of 27
Land = 1,279,996 sq km
Growing at 1.3% annually
Water = 5,220 sq km
Schooling
Literacy (2005)
88.92
Offered to all children
Enrollment
Public & Private Universities
Total
6.5 million
Primary
4.1 M
Secondary
2.4 M
Poverty
“Peru was able to reduce the national poverty
rate by 28 percentage points since 2002.”
Economy
344 Billion
5.6% increase
5.1% (2013 est.) 54th
GDP per capita of 11,100
Gross national saving: 22.2% of GDP (2013 est.) 67th
Unemployment rate: 3.6% (2012 est.)
Decreasing Public debt: 14.9% of GDP (2013 est.) 144th
Inflation rate (consumer prices): 2.9% (2013 est.) 111th
Budget
Budget surplus
Budget:
$2,680,000 USD
Revenues $60.95 Billion
1% of GDP
Expenditures: $58.91 Billion
29th
Labor Force
16.16 billion individuals
38th
25.8% Agriculture Industry
17.4%
Industrial Industry
56.8% Service Industry
Labor Laws
Recognition of the right to collective bargaining
Elimination of all forms of force/compulsory
Abolition of child labor
Elimination of discrimination
Acceptable conditions of work:
health
minimum wages
hours of work
occupational safety
Business Incentives
Reliable legal framework geared towards
maintaining the stability required for boosting
private business activity, investment and
growth.
As a result, the country has attracted
substantial capital investment which has
allowed for sustained economic growth.
Abundance of natural resources
low taxes / Government control
Rated as high investor grade
Foreign investors have equal rights
Economy fairly stable over the last 20 years
Politics
July 28th 2011
President Ollanta Humala
Vice President Marisol Espinoza
The administration supports a policy of social inclusion and a more
equitable distribution of income however inequality persists
lacking governmental structures
Mountainous terrain
Amazon river marshes
Long distances continues
Lack of infrastructure
Land was not valuable until oil was found, then
it was highly sought after by big business
Indigenous
War
Lack of trade
Government Corruption
Human rights violations
Drug trafficking
Civil unrest & hostility
Technology
Advances in Modern communication technology
Helped Peru and the US reach a free trade agreement
Increase funding for science & technology
Road connecting Brazil and Peru
Trade
“Trade deficit of 573 Million
USD in July of 2014”
Peru has signed off on trade deals with the
US, Canada, Singapore, China, Korea, Mexico,
Japan, the EU, the European Free Trade
Association, Chile, Thailand, Costa Rica, Panama,
Venezuela, and Guatemala
Began trade talks with Honduras and El Salvador,
Turkey and the Trans-Pacific Partnership.
Signed a trade pact with Chile, Colombia, and
Mexico, called the Pacific Alliance, that rivals
Mercosur another South American Treaty
43% of Peru’s GDP in produced from trade with
United States, China, Brazil, European Union, and
Chile
Peru continues to attract foreign investment
Political activism and protests continue delaying
development progress
“Since Peru signed the US-Peru Trade Promotion Agreement
into force in February 2009, total trade between the two nations
has doubled.”
Exports
Second largest producer of silver and third
largest producer of copper
Exports:
$41.48 billion in 2013
60th
$45.64 billion in 2012
Export commodities
Copper, gold, lead, zinc,
tin, iron ore, molybdenum,
& silver
petroleum products,
natural gas; coffee,
vegetables, fruit, apparel
and textiles, fishmeal, fish,
chemicals
Peru’s Exports
China
20%
Other
38%
US
16%
Chile
5%
China
US
Spain
5%
Canada
Canada
9%
Japan
7%
Japan
Spain
Chile
Other
Heavily reliant on the rest of the world import demands
Central Bank discount rate is 5.05%, banks lend at 20.3%.
This high lending rate keeps new ventures and capital
proceeds from boosting their economy further.
Imports
Percentage of trade
$42.13 billion in 2013
US
25%
59th
Other
33%
US 24.6%, China 14%, Brazil
6.4%, Argentina 5%, Chile
China
14%
4.8%, Colombia 4.2%, Ecuador
Mexico
4%
Ecador
4%
Colombia
4%
4.1%, Mexico 4% (2012)
US
China
Brazil
Chile
5%
Argentina
Chile
Argentina
5%
Colombia
Brazil
6%
Ecador
Mexico
Other
Import commodities
petroleum and petroleum products, chemicals,
plastics, machinery, vehicles, color TV sets, power
shovels, front-end loaders, telephones and
telecommunication equipment, iron and steel,
wheat, corn, soybean products, paper, cotton,
vaccines and medicines
Future
An economic leader within our lifetimes
Multinational corporations have begun to bring in
foreign investment, jobs with higher living wages,
and a backbone to support their infrastructure
Educate and inform citizens for life in modern civilization
World’s leading nations when it comes to environmental
innovation and progress, promoting healthy living,
environmentally friendly lifestyle, and climate change
awareness
Civil unrest will continue among anti-mining,
deforestation, and development
High export numbers, and strong trading partners
Workforce is constantly increasing and the demand for
technology is rising
Increased number of production will further increase
production advantage to this region continuing to drive the
economy
Education is passing along the ability to continue driving
the economy, further advancing production and trade
Peruvian economy is heavily reliant on their trade
relationships with the rest of the world
Central Bank discount rate is 5.05%, commercial banks
lend at a rate of 20.3%
High lending rate keeps new ventures and capital proceeds
from boosting their economy further
Macroeconomic performance and combine dependence of
exporting minerals, metals, and imported food products
make the economy vulnerable to fluctuations in prices.
With modern advances in communication and technology,
globalization is helping to shape and change the direction
of this country’s entire outlook.
Increasing funding for science, technology, and education
overall reducing illiteracy to below 7 percent in most areas
and bringing the poverty rate down by about half in the
past two decades.
A controversial road connecting Brazil's Atlantic coast with
Peru's Pacific seaboard is underway, yet another
transformation in diplomatic relationships that will help
the coming generations.
Works Cited
"South America: Peru." The World Factbook. Central Intelligence Agency, 1 Jan. 2014. Web. 26 Sept. 2014. <https://www.cia.gov/library/publications/the-world-factbook/geos/pe.html>.
Central Intelligence Agency. Central Intelligence Agency, n.d. Web. 23 Sept. 2014.
Labor, U.s. Department Of, and Bureau Of International Labor Affairs. PERU Labor Rights Report (n.d.): n. pag. Web. 22 Sept. 2014.
Sicker, M. (2002). The Ecuador-Peru Boundary Dispute. In The geopolitics of security in the Americas: Hemispheric denial from Monroe to Clinton. Westport, Conn.: Praeger.
"Timeline: Peru." BBC News. BBC, 9 Feb. 2012. Web. 18 Nov. 2014. <http://news.bbc.co.uk/2/hi/americas/1224690.stm>.
"Peru Strengthens Science and Technology - Inter-American Development Bank." IDB. Inter-American Development Bank, 1 Jan. 2014. Web. 18 Nov. 2014.
<http://www.iadb.org/en/mapamericas/peru/peru-strengthens-science-and-technology,7820.html>.
Peru Physical Map. 2011.
"Peru." Data. The World Bank, 1 Jan. 2014. Web. 18 Nov. 2014.
<http://data.worldbank.org/country/peru?display=graph#cp_fin>.
Rodrigo, Elias, and Medrano. "Doing Business in Peru." World Service Group. Ministerio De Relaciones Exteriores, 1 June 2012. Web. 25 Nov. 2014. <http://www.worldservicesgroup.com/guides/Doing
Business in Peru - Ingles - Junio 2012.pdf>.
USA's Trade Balance with Peru. 2013.
Patton, Mike. "The Three Countries With The Highest Inflation." Forbes. Forbes Magazine, 9 May 2014. Web. 25 Nov. 2014. <http://www.forbes.com/sites/mikepatton/2014/05/09/the-three-countrieswith-the-highest-inflation/2/>.
"Latin America | FocusEconomics." FocusEconomics. Focus Economics, 12 Nov. 2014. Web. 25 Nov. 2014. <http://www.focus-economics.com/regions/latin-america>.
Woods, Randall, and John Quigley. "Latin America Commits to Open Trade After Protectionist Year." Bloomberg.com. Bloomberg, 28 Jan. 2013. Web. 25 Nov. 2014.
<http://www.bloomberg.com/news/2013-01-28/latin-america-commits-to-open-trade-after-year-of-protectionism.html>.
Age Pyramid of Peru in 2007. 2007. Wikiperuvian, Lima.