On its road to development, Peru has two kinds of challenges to face. First, there are the external ones, like the global depression will affect our exports, the fact that China might grow at less than 6%, and the difficulty in attracting investment.

Second are the internal ones, which make our country look like one of missed opportunities.

We have internal enemies that we have not defeated, such as illiteracy and poverty, which generate terrorism, narcotrafficking, corruption, informality and which increase the social conflicts that would paralyze mining activity.

Perhaps the most important thing is to invest in human capital, which will support growth and which will, in turn, improve productivity and create more opportunity for everyone.

Well-prepared and productive citizens generate wealth for themselves and for everyone else, as it is them and the companies they work for who generate the GDP, pay the taxes, generate employment and make possible a state with the capacity to fulfill its responsibilities. That is the greatest asset of a nation.

Today, when they debate the agenda through 2016, it is a certainly that education, science and technology will be present in the plans for the government’s management. For example, in 2012, S/. 1.5 billion will be dedicated to education, an 8.6% increase over 2011, and 3.6% of GDP. The goal, in the medium term, should be for that to grow to 6% of GDP, according to a recommendation of the National Educational Council.

To maintain and consolidate the economic growth, eradicate poverty and accomplish social inclusion, we must recognize that education is the most important tool, as it will make Peru more productive, competitive and equaitable.

The World Bank has demonstrated that for every dollar invested in early childhood, a country receives a return of up to $7, and indirectly of $17, as the country now does not have to invest in remedial schools or face gangs.

With respect to post-secondary education, the government should create incentives to propel its decentralization and so that domestic and foreign universities cooperate and offer exchanges of professors and students.

While natural resources are important, the greatest wealth of a country comes from the knowledge of its people. This has been demonstrated in Japan, Switzerland, Norway, Sweden, Holland, South Korea and other countries that have few natural resources but high productivity and living standards.

We must invest, at a minimum, 1% of GDP on research and development. Today, that investment is barely 0.15%, less than the regional average of 0.68%, and far behind First World countries like the United States, which invests 3.04%. That explains why we occupy 113th place in the 142-country innovation ranking of the World Economic Forum, and why our exports are concentrated in primary products.

With respect to infrastructure, according to the Instituto Peruano de Economia, there is a $37 billion deficit in that field. There are $2.1 billion of investments in the pipeline for the next two years. According to the Regional Forum 2011, presented this past December by ProInversion, there are investment projects (apart from mining) totaling some S/. 63 billion. Attracting investments and generating opportunities for export or internal consumption through coherent, well-studied and technically sound measures is the road to follow.
 

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