Peru: Living in a Paradox of Economic Growth under Social Discontent. 2000-2017

Abstract

Between 2000 and 2017, Peru experienced significant macroeconomic progress, growing at an average annual rate of 4.3%. Despite improvements in GDP, income and employment, the Peruvian Ombudsman Office reported a sharp increase in social conflicts, which mainly had a socioenvironmental origin. The aim of this paper is to identify the elements of the paradox of a country that grows in macroeconomic terms under social discontent. In order to do so, social indicators, such as monetary and multidimensional poverty, inequality and human development indicators, will be analysed. It is concluded that the existing inequality, the high dependence on natural resources and scandals of corruption might have triggered social conflicts.

Keywords: Peru, economic growth, economic performance, social discontent, poverty, inequality

JEL Classification: H7, O15, O17, N1, N3