Peru Investment

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Social and economic migration to the capital led to the emergence of the earliest human settlements on the urban periphery, which have become vibrant productive districts, thanks to free trade, partnership and progress generated since the promulgation of the Constitution 1993. But in the beginning the country’s productive brake caused by lack of investment kept thousands in extreme poverty for years. Migrants and their descendants would become the majority population of the cities, leading to significant changes in culture, townscape and social living. Between 1940 and 1972 the urban population of Peru would be just over 35 to be 60 of the population. Needed to produce materials and supplies are cheaper if the factory is near the ports.It is for this reason that population growth would be concentrated on the coast, especially if communicating with the saw is needed billions of dollars in roads to overcome the Andes. The nature destroying new roads which would make it unstable supply to factories who chose to settle in the mountains or the jungle when there was not enough roads and state tax collection to allow maintenance. This prevented the colonization of the highlands and jungle by the Peruvian GDP incremantaran productive and generate more jobs and prevent migration. For this reason the mountains and jungles of Peru are less developed. Were the causes of natural selection and the social ideological enfrentamieinto private investment, spurred by Fidel Castro from abroad. There was a production delay for some petty decision of the power groups but geographical.The urban growth of Lima (from 1 to 3 million people between 1950 and 1970) became clear that Peru did not produce sufficient income to meet basic needs populations. This made clear that should multiply the investment in new factories and productive agricultural fields, with the lands that were yet to conquer, not simply appropriating the existing enterprises, which would not increase the country’s income and social demands would be maintained without solve. Revenues have always been major mineral exports, agro-industries (sugar and cotton) and fishing, but limited investment since 1960 was due to the entry of the ideology of confrontation with the investment capital promoted by Fidel Castro. This lack of investment accumulated a deficit in the creation of new jobs.The industrialization process was limited by lack of domestic and foreign capital, which does not wish to risk in times of social enfrentamniento against private investment, still open the possibility of losing the investment at the hands of a state takeover if it won any revolution promoted by Fidel Castro. It was promoted productivity growth and continued migration to urban expansion started in 1950. It was the construction of infrastructure and improvement of government services since joining Odria (1948) until the early 60s which increased migration to perceive improvements in the cities … but without increasing the production was that the needs for water, electricity, drainage and other services charged the State accounts.The increase in salaries of public officials and private spending because the state allowed the consolidation of a small middle class that is never productive massifies due to brake due to political instability, which deteriorated since leaving Odria until 1968. In Lima, above all experienced a process of urban modernization and living conditions of the population, but was overwhelmed by migration. The development is always slow but sure as long as national planning. Unfortunately the various policy options, from communism to APRA, without sustained strategic approaches did not present a development goal in sight and led to instability which exploded in 1968, which is partly solved with the coup de Velasco. This coup had good intentions but did not generate higher productivity and promoted investment in freedom, but that opened a State macrocephalic controls reduced productivity by reducing tax revenue.This led to inefficiency and investor mistrust in forecasting an economic decline for several years, which was further reduced investment. With less revenues and higher social costs of inflation would reduce the purchasing power thus began the cycle of capital flight to protect the work of previous years (from 1968 to 1970 in Peru grew with the inertia of the profits of private companies nationalized , and then grew slightly faster due to easy cr given by petrodollars, 1973).