Business

No: 2

PERU

1. What are some current issues facing Peru? What is the climate for doing business in Peru today?

Peru is the third biggest country of South America and covers 1,285,215

square kilometres. Peru has three natural regions: the coast, highlands and

jungle. The Peruvian population for 2008 was 28.2 million. Around 75.9%

of the population lives in urban areas and 24.1% in rural areas.  

The administrative divisions of the country include 24 Departments and

one Constitutional Province, Callao. Each Department consists of

provinces, which total 180 (Callao included), and these are divided into

districts, which total 1,747. The capital city is Lima.  

The Peruvian State is organized administratively into the Executive Power,

composed by the President of the Republic, who is the Chief of State and is

elected by direct voting for a five‐year term. Legislative Power is centred in

a unicameral Congress. One hundred and twenty congressmen are directly

elected. Power over the administration of justice is held by the Judiciary. Its

highest body is the National Counsel of Magistrates.

The official language is Castilian, but in many regions of the country the

Quechua language is in use (a dialect inherited from the Inca culture),

Aymara is a language of a part of highlands. The currency is the New Sun

(Nuevo Sol).

Current Issues:

Peru’s 2011 runoff election on June the 5th is a critical, hotly contested election between two candidates who represent opposing views of Peru and its place in the world. A quick view at this polarized, highly competitive election shows how quickly the political landscape can change, but also makes clear the presence of long-term political, economic and social problems which may indicate the opposite: that Peru in fact ‘never changes’.

There are three main reasons why the 2011 election is so critical.

One, given the virtual tie between the two leading candidates, Ollanta Humala and Keiko Fujimori, and the lack of...