Peru  

The unemployment rate is moderate at 7% and Peru’s workforce has a relatively low level of access to productive physical capital, ranking the country in the bottom 30 on this variable. Export revenue is moderately dependent on raw materials, and Peru’s capacity to earn foreign currency is very weak, as its low ratio of export revenues to costs of imports indicates. With the inflation rate at just 2%, Peru ranks 10th on this variable of monetary prudence. Despite very low default rates of 1.3%, interest margins are very high, equalling 8.1 percentage points and ranking Peru 94th, worldwide. Domestic savings rates are higher than household expenditure, at 29% and 25% of GDP, respectively. The economy also attracts a relatively high amount of foreign investors, with direct investment equalling 5% of GDP.

In Peru, entrepreneurs are required to undertake 10 formal procedures to establish a new business. This has resulted in the second highest number of new businesses among the Latin American nations and ranks Peru 24th, internationally, on this variable. Value added by the service industry is around the global average, equal to 56% of GDP. The high level of enterprise suggests optimism about success, but Peru lacks spark in communications and new technology. The level of internet infrastructure as measured by internet bandwidth is high, but access to personal computers is moderate at about 10 units for every 100 citizens. The number of secure servers is also moderate, with about six servers per one million individuals. Peru ranks 93rd on ICT as a percentage of exported goods, and high-tech exports are also extremely low at just 2% of manufactured exports. Royalty receipts are about average, indicating some capacity to commercialise on intellectual property, but Peru ranks amongst the bottom 35 countries for R&D, indicating weak innovation activity.

Peru is categorised as an almost complete democracy, with high levels of competition between rival parties for both the executive and legislative branches of government. The chief executive is elected through open and well-regulated processes, with significant checks and balances in place to curb arbitrary actions. However, the judiciary is not free from interference by other branches of government. Peru also suffers extremely low levels of regime stability, with the country ranking in the bottom 20 on this variable. While citizens enjoy moderately high levels of personal autonomy and freedoms of expression, faring better than their neighbours in Latin America, Peru falls short of the highest possible rating for individuals’ political rights.

Primary school enrolment is very high at 96%, placing the country 32nd, internationally, on this variable. There are equal amounts of boys and girls in class, as well as one teacher for every 22 children, a moderately high figure, globally. Secondary school enrolment is also high at 94% while tertiary enrolment rates fall to 35%, ranking Peru 50th, internationally, on the latter variable. The average education per worker is 4.9 years of secondary education and 4.2 years of tertiary education, placing Peru above the global average on these variables. Educational expenditure is extremely low at approximately $700 per student in primary and secondary schooling.

A ratio of one hospital bed per 1,000 people indicates insufficient access to healthcare facilities. Malnourishment is high, the infant mortality rate is at 2.3%, and health-adjusted life expectancy is 61 years. In Peru, over a quarter of the population has no access to improved sanitation facilities, while one-third is dissatisfied with the water quality.* Over one-third of respondents said they suffered pain the previous day and 25% reported non-age-related health problems.* On all subjective assessments of wellbeing, except self-reported feelings of being well rested, Peru ranks in the bottom 35.

The homicide rate is moderate, but Peru has some of the highest incidences of assault and theft worldwide. A high 13% of respondents reported being mugged or assaulted in 2008 and 24% report having household property stolen.* As a result, fewer than half of the population felt safe walking alone at night in the place where they lived.* Peru experiences some security challenges related to internally displaced persons and groups with a history of discrimination. There are problems related to incidents of state-sponsored violence and political terror, but Peru suffered no casualties due to civil conflict in 2008. Peru faces significant challenges related to widespread human flight from dangerous or degrading conditions.

Most Peruvians believe corruption to be endemic, with approximately nine out of 10 people believing their government and local businesses to be corrupt, ranking Peru 85th and 77th, respectively, on these variables.* Economic and commercial activity is well regulated, but the rule of law in Peru is applied arbitrarily and unequally and there are many who act above the law. In fact, Peruvians express the lowest levels of confidence in the judicial and court system of all countries, with an approval rate of only 16%.* Political participation is open to all, but only 35% believe that elections are honest.* The civil service is poorly run and often fails to deliver on the policies enacted by the executive branch of government. The armed forces have the second lowest approval rating globally, with just 35% of the population expressing confidence in the country’s military.*

Peru ranks quite low on tolerance towards ethnic minorities and immigrants, with less than two-thirds of the population reporting that their country is a good place for these groups.* This places Peru 66th with respect to the former and 65th according to the latter variable.* Peruvian citizens have above average freedoms of speech, movement, and religious expression when compared internationally. However, only two-thirds are satisfied with their freedom of choice, ranking Peru 76th, worldwide.*

Only 6% of respondents say others can be trusted, and one in five people reported that they could not rely on friends and family in times of need.* Similarly, Peruvians report that friendship is not of high value in their lives. Membership of sports, arts, and environmental organisations is very low. However, 38% say they belong to a religious organisation and a majority see themselves as religious, both figures above global averages. Almost half of respondents reported having helped a stranger and nearly one-quarter reported volunteering in 2008.* However, charitable giving is low, with only 20% of respondents giving money.*

* Data taken from the Gallup World Poll

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