Peru Investment Hits Resistance
Billions of dollars in direct investment is poised to flow into Peru, one of the fastest growing regional economies. Social unrest and an LNG controversy highlight the risk.
by Lucien Chauvin
There is a new sense of enthusiasm in San Juan de Marcona, a
small, windswept town in southern Peru, where the rolling
desert meets the cold Pacific Ocean. Hotels and restaurants
have opened and businesses are thinking about expanding after
years of watching the population shrink. A renewed lease on
life is due to a long list of investment projects that should
have a significant impact on this town of 13,500 people located
530 kilometers from Lima.
Marcona is a test case for Peru as it tries to build on years
of steady growth to achieve per capita income levels on par
with first-world standards by 2021, its bicentennial, a target
set by president Alan García. If everything goes as
planned, Marcona could attract upward to $6 billion in the next
five years in the countrys traditional sectors like
mining, fishing and agriculture, as well...
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