Since July 2011, the Humala administration has pursued reforms to achieve social inclusion. The sustainability of Peru’s economic progress not only requires high economic growth but also effective and efficient social policies to tackle persistent inequality.
Generating opportunities for all, with access to good quality basic services; reducing asymmetries between urban and rural areas; and making development more broad-based and fair are fundamental priorities of the Peruvian government.
Policy continuity in key areas such as macroeconomic stability, openness and private investment promotion, have enabled Peru to adequately face the slowdown in the global economy. However, these policies are not sufficient to guarantee the welfare of Peru's citizens.
As a nation, Peru aspires to become a member of the OECD in the next few years, commit to global best practices, and navigate the route from a middle-income economy to a more developed one.
Peru is confronting the structural challenges it still faces, such as improving the quality of its human capital, building sounder institutions, delivering more effective government services, mitigating climate change, and fighting illicit activities, among others.
President Humala is absolutely committed to fighting the ills associated with illegal activities. So far during his administration, the Peruvian government has almost tripled the budget to eradicate coca production, although much more must be done. Peru's commitment to more ambitious eradication targets requires continued cooperation with the United States, as we acknowledge joint responsibility. More cooperation in the realm of national defense can be achieved as both countries work together towards updating our existing agreement.
However, the benefits of trade and investment can be amplified even more. The sound economic recovery in the United States is the ideal setting to further engage our small- and medium-sized enterprises in joint projects.
The Peruvian government fully supports the leadership that the U.S. is pursuing to finalize the negotiations in the Transpacific Partnership (TPP), as Peru is eager to integrate the most dynamic trading bloc in the world.
The Pacific Alliance, where Peru is a very active member, has the potential to become one of the most attractive markets to investors worldwide, as we fully support open policies, sound economic management and fully respect rule of law to host foreign investment. We hope that greater engagement with the United States will be positive for our mutual prosperity.
President Humala is prioritizing important reforms to improve competitiveness and boost productivity.
To materialize this potential, President Humala is prioritizing important reforms to improve competitiveness and boost productivity. Three areas that evidence these priorities are: first, a strong leadership towards improving the quality of our human capital; second, record investment to close infrastructure gaps; and, third, actively supporting policies to diversify and sophisticate exports through innovation and entrepreneurship.
Particularly in education, Peru shares the objectives of the 100,000 Strong in the Americas Program through more academic and cultural exchanges in our Hemisphere and we hope to help in the success of this program.
Public policies in this area are critical to attain higher social mobility and sustain economic progress. Although Peru has already engaged in a number of important agreements with many American universities, the Peruvian administration hopes to foster greater cooperation in this field.
Peruvian authorities are introducing a major emphasis on teaching the English language in all public schools by 2021, the year of the bicentenary of our independence, and this area is an ideal opportunity to enhance bilateral cooperation.
A more active outreach to US investors can accelerate the reduction of existing infrastructure gaps. In order to encourage a more active participation of US firms in our bidding processes, we intend to improve our capabilities in our Embassy and promotion agencies to constantly support American investors interested in taking advantage of Peru’s vast investment opportunities.