Peru's Ghezzi: Aquaculture, CITEs, industrial parks to boost economy in the short term

The Minister of Production Piero Ghezzi affirmed that granting the Executive the legislative powers will invigorate the Peruvian economy in the short term thanks to the investments resulting from such grant.


It should be noted the grant of powers within the production sector will stimulate the aquaculture activity, upgrade Technological Innovation Centers (CITEs) and promote the creation of industrial parks.


“These powers will enhance productive diversification, an imperative need in the country. Improving our export basket will take a few more years, but in the short term we can find some investment opportunities to foster the economy,” he said.


During his speech before the Congress, Ghezzi said the grant will allow the Executive to enact a new law on aquaculture, aimed at promoting such a lagged-behind sector.


The initiative, which is part of the National Productive Diversification Plan, seeks to replace the previous 15-year-old law.


“We know fishing has grown this year, but its potential is even greater, particularly, when it comes to aquaculture, since the current law is 15 years old, is competently out-of-date and does not regard it as a modern activity,” he said.


Ghezzi explained it [the law] also encourages informality, so that in order to turn it into the economy’s engine, it is necessary to implement a new regulation with other measures.


The minister pointed out that while in the world 50% of fishing activity is extractive and the remaining amount comes from aquaculture, in Peru 98.5% comes from fishing, which occurs along the coast, and only 1.5% from aquaculture.


“China’s fishing activity is slightly greater than that of Peru, by 30%, whereas its aquaculture activity is 300 times higher than ours,” he stated.


Produce’s chief assured that another important issue addressed as part of the legislative powers has to do with CITEs, which are intended to solve serious productivity problems of micro and small-sized enterprises (MSEs).


“There is a tool that can increase MSEs’ productivity through technological transfer, which serves to innovate,” he added.


His sector is set to create more than 40 CITEs across the country during the remainder of his period in office, but the regulation has not been adapted and it is 15 years old.


“The country requires a productive diversification process, which has moved forward taking very small steps in the past years. Upgrading and diversifying our export basket will take a few years; however, we will be able to see new investments in the short term,” he continued.


Finally, he indicated that another issue the grant of powers intends to promote is that of industrial parks.


Ghezzi emphasized the need of Peru –as part of its diversification process– to have modern industrial parks, as evidenced in more developed countries, in order to provide space for productive development.


“Productive diversification implies to turn additional engines in favor of our long term growth. Industrial Parks are quite important to ease the emergence of these new engines,” he pointed out.


Instead of modern Industrial Parks, Peru has industrial areas located in the middle of the city, which do not meet 21st century standards and do not match a long term productive development view.


“We are promoting a new model that is completely different from what we’ve got today, that is, well located areas near ports, where industries and companies can operate making economies of scale with their respective value chains and clusters,” he added.


Such industrial parks will match environmental standards to avoid polluting cities, manage residues efficiently and have the necessary connectivity with regard to electricity, water and internet access and services.