2.

1: Country/Economy Profiles

Peru
Key indicators, 2011

GDP (PPP) per capita (intl $), 19902011

Population (millions) ........................................ 29.7

GDP (US$ billions) ........................................ 173.5
GDP per capita (US$) ................................... 5,782
GDP (PPP) as share (%) of world total ............ 0.38

Peru

12,000

Latin America and the Caribbean

10,000
8,000
6,000
4,000
2,000

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

The Global Competitiveness Index

Rank
(out of 144)

Stage of development

Score
(17)

GCI 20122013 ...................................................... 61 ..... 4.3

Transition
12

GCI 20112012 (out of 142) ..................................... 67 ......4.2

GCI 20102011 (out of 139) ..................................... 73 ......4.1

Factor
driven

Transition
23

Efficiency
driven

Basic requirements (40.0%) .......................................69 ......4.6

Innovation
driven

Institutions

Institutions .............................................................. 105 ......3.4

Infrastructure ............................................................ 89 ......3.5
Macroeconomic environment ................................... 21 ......5.9
Health and primary education ................................... 91 ......5.4

Innovation

Infrastructure

6
5

Business
sophistication

Macroeconomic
environment

4
3

Efficiency enhancers (50.0%) .....................................57 ......4.2

Higher education and training ................................... 80 ......4.0

Goods market efficiency .......................................... 53 ......4.4
Labor market efficiency ............................................ 45 ......4.6
Financial market development .................................. 45 ......4.5
Technological readiness ............................................ 83 ......3.6
Market size ............................................................... 45 ......4.4

Market size

Health and
primary
education

Higher education
and training

Technological
readiness
Financial market
development

Innovation and sophistication factors (10.0%) ...........94 ......3.3

Goods market
efficiency
Labor market efficiency

Business sophistication ........................................... 68 ......3.9

Innovation ............................................................... 117 ......2.7

Peru

Efficiency-driven economies

The most problematic factors for doing business

Inefficient government bureaucracy ...................................17.5
Corruption .........................................................................16.1
Restrictive labor regulations ...............................................13.6
Inadequate supply of infrastructure ......................................9.9
Inadequately educated workforce ........................................9.4
Policy instability ...................................................................6.1
Crime and theft ...................................................................6.1
Access to financing .............................................................5.0
Tax rates..............................................................................4.4
Poor work ethic in national labor force ................................3.7
Tax regulations ....................................................................3.6
Insufficient capacity to innovate ...........................................2.0
Poor public health ...............................................................1.1
Government instability/coups ..............................................0.8
Inflation ................................................................................0.5
Foreign currency regulations ................................................0.2
0

10

15

20

Percent of responses
Note:

From the list of factors above, respondents were asked to select the five most problematic for doing business in their country and to rank them between
1 (most problematic) and 5. The bars in the figure show the responses weighted according to their rankings.

290 | The Global Competitiveness Report 20122013

2012 World Economic Forum

25

30

2.1: Country/Economy Profiles

Peru
The Global Competitiveness Index in detail
INDICATOR

VALUE RANK/144

INDICATOR

1st pillar: Institutions

VALUE RANK/144

6th pillar: Goods market efficiency

1.01
1.02
1.03
1.04
1.05
1.06
1.07
1.08
1.09
1.10
1.11
1.12
1.13
1.14
1.15
1.16
1.17
1.18
1.19
1.20
1.21
1.22

Property rights ....................................................... 3.8 ............98

Intellectual property protection ............................... 2.6 ..........127
Diversion of public funds ........................................ 2.7 ..........103
Public trust in politicians ......................................... 1.9 ..........127
Irregular payments and bribes ................................ 3.9 ............72
Judicial independence............................................ 2.5 ..........125
Favoritism in decisions of government officials ....... 2.9 ............82
Wastefulness of government spending ................... 3.5 ............49
Burden of government regulation ........................... 2.7 ..........128
Efficiency of legal framework in settling disputes .... 3.0 ..........118
Efficiency of legal framework in challenging regs. ... 3.1 ..........105
Transparency of government policymaking............. 4.1 ............88
Govt services for improved business performance 3.4 ............81
Business costs of terrorism .................................... 4.7 ..........119
Business costs of crime and violence..................... 3.4 ..........125
Organized crime ..................................................... 3.9 ..........126
Reliability of police services .................................... 3.0 ..........128
Ethical behavior of firms ......................................... 3.6 ............93
Strength of auditing and reporting standards ......... 5.0 ............49
Efficacy of corporate boards .................................. 4.7 ............54
Protection of minority shareholders interests ......... 4.2 ............71
Strength of investor protection, 010 (best)* .......... 7.0 ............17

2.01
2.02
2.03
2.04
2.05
2.06
2.07
2.08
2.09

Quality of overall infrastructure ............................... 3.4 ..........111

Quality of roads ...................................................... 3.1 ..........100
Quality of railroad infrastructure .............................. 1.9 ............97
Quality of port infrastructure ................................... 3.5 ..........111
Quality of air transport infrastructure....................... 4.5 ............74
Available airline seat kms/week, millions* ........... 452.0 ............42
Quality of electricity supply ..................................... 4.8 ............74
Mobile telephone subscriptions/100 pop.* ......... 110.4 ............58
Fixed telephone lines/100 pop.* ........................... 11.1 ............87

3.01
3.02
3.03
3.04
3.05

Government budget balance, % GDP*................... 1.9 ............19

Gross national savings, % GDP* .......................... 24.3 ............49
Inflation, annual % change* .................................... 3.4 ............36
General government debt, % GDP* ..................... 21.6 ............28
Country credit rating, 0100 (best)* ...................... 63.7 ............44

4.01
4.02
4.03
4.04
4.05
4.06
4.07
4.08
4.09
4.10

Business impact of malaria .................................... 5.5 ............90

Malaria cases/100,000 pop.* ............................. 311.1 ..........105
Business impact of tuberculosis ............................. 5.0 ............87
Tuberculosis cases/100,000 pop.* ..................... 106.0 ............93
Business impact of HIV/AIDS ................................. 5.0 ............87
HIV prevalence, % adult pop.* ............................... 0.4 ............78
Infant mortality, deaths/1,000 live births* .............. 14.9 ............68
Life expectancy, years*......................................... 73.8 ............66
Quality of primary education ................................... 2.1 ..........138
Primary education enrollment, net %* .................. 95.4 ............51

5.01
5.02
5.03
5.04
5.05
5.06
5.07
5.08

Secondary education enrollment, gross %* .......... 91.4 ............59

Tertiary education enrollment, gross %*................ 43.0 ............58
Quality of the educational system ........................... 2.5 ..........132
Quality of math and science education .................. 2.1 ..........141
Quality of management schools ............................. 4.5 ............49
Internet access in schools ...................................... 3.7 ............89
Availability of research and training services ........... 3.9 ............85
Extent of staff training ............................................ 3.8 ............84

2nd pillar: Infrastructure

3rd pillar: Macroeconomic environment

4th pillar: Health and primary education

5th pillar: Higher education and training

6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08
6.09
6.10
6.11
6.12
6.13
6.14
6.15
6.16

Intensity of local competition .................................. 5.1 ............49

Extent of market dominance .................................. 3.4 ............93
Effectiveness of anti-monopoly policy ..................... 4.2 ............58
Extent and effect of taxation................................... 3.4 ............79
Total tax rate, % profits* ....................................... 40.7 ............77
No. procedures to start a business* .......................... 5 ............29
No. days to start a business* .................................. 26 ............93
Agricultural policy costs.......................................... 3.9 ............72
Prevalence of trade barriers ................................... 4.6 ............41
Trade tariffs, % duty* .............................................. 2.0 ............36
Prevalence of foreign ownership............................. 5.3 ............34
Business impact of rules on FDI ............................. 5.3 ............21
Burden of customs procedures .............................. 4.1 ............68
Imports as a percentage of GDP* ........................ 25.5 ..........129
Degree of customer orientation .............................. 4.9 ............45
Buyer sophistication ............................................... 3.6 ............54

7.01
7.02
7.03
7.04
7.05
7.06
7.07
7.08

Cooperation in labor-employer relations ................. 4.3 ............66

Flexibility of wage determination ............................. 5.3 ............50
Hiring and firing practices ....................................... 3.4 ..........107
Redundancy costs, weeks of salary* ....................... 11 ............48
Pay and productivity............................................... 3.6 ............88
Reliance on professional management ................... 4.6 ............47
Brain drain ............................................................. 3.9 ............43
Women in labor force, ratio to men* ..................... 0.81 ............67

8.01
8.02
8.03
8.04
8.05
8.06
8.07
8.08

Availability of financial services ............................... 5.0 ............46

Affordability of financial services ............................. 4.6 ............39
Financing through local equity market .................... 3.6 ............61
Ease of access to loans ......................................... 3.6 ............26
Venture capital availability ....................................... 2.9 ............46
Soundness of banks .............................................. 6.0 ............20
Regulation of securities exchanges ........................ 3.6 ..........105
Legal rights index, 010 (best)* ................................. 7 ............43

9.01
9.02
9.03
9.04
9.05
9.06
9.07

Availability of latest technologies ............................ 4.9 ............75

Firm-level technology absorption ............................ 4.7 ............79
FDI and technology transfer ................................... 5.0 ............30
Individuals using Internet, %* ............................... 36.5 ............76
Broadband Internet subscriptions/100 pop.* .......... 3.5 ............83
Intl Internet bandwidth, kb/s per user* .................. 9.3 ............88
Mobile broadband subscriptions/100 pop.*............ 1.4 ..........108

7th pillar: Labor market efficiency

8th pillar: Financial market development

9th pillar: Technological readiness

10th pillar: Market size

10.01 Domestic market size index, 17 (best)*................. 4.3 ............43
10.02 Foreign market size index, 17 (best)* .................... 4.8 ............55

11th pillar: Business sophistication

11.01
11.02
11.03
11.04
11.05
11.06
11.07
11.08
11.09

Local supplier quantity ........................................... 5.0 ............47

Local supplier quality.............................................. 4.6 ............61
State of cluster development.................................. 3.6 ............75
Nature of competitive advantage ............................ 3.1 ..........101
Value chain breadth................................................ 3.4 ............90
Control of international distribution ......................... 4.0 ............68
Production process sophistication.......................... 3.5 ............78
Extent of marketing ................................................ 4.2 ............57
Willingness to delegate authority ............................ 3.7 ............78

12.01
12.02
12.03
12.04
12.05
12.06
12.07

Capacity for innovation........................................... 2.8 ..........103

Quality of scientific research institutions ................. 2.8 ..........116
Company spending on R&D................................... 2.6 ..........118
University-industry collaboration in R&D ................. 3.1 ..........110
Govt procurement of advanced tech products ...... 3.2 ............99
Availability of scientists and engineers .................... 3.4 ..........120
PCT patents, applications/million pop.* .................. 0.2 ............88

12th pillar: Innovation

Notes: Values are on a 1-to-7 scale unless otherwise annotated with an asterisk (*). For further details and explanation, please refer to the section How to Read
the Country/Economy Profiles on page 83.
The Global Competitiveness Report 20122013 | 291
2012 World Economic Forum