Chapter 10. The Gap in Infrastructure Investment in Peru and Challenges Ahead

Abstract

Investment in infrastructure is a key determinant of productivity in any economy, but especially so in countries like Peru, where infrastructure is still scarce and congested, as shown by the deficit provided in this chapter. Although more than two decades ago strong political support emerged for the delivery of infrastructure, its intensity has been changing over time. Thus, the challenge is to get back to the best years of investments to close the gap regarding other countries, specifically our neighbors in the short-run and OECD countries in the long-run—bearing in mind that Peru aims to become a member of this selective group of countries. Infrastructure is not the goal itself but a relevant means of increasing welfare and escaping the middleincome trap.