LIMA, 21 September 2018 – The Industrial Development Report 2018 (IDR 2018) was presented today at the Lima Chamber of Commerce and a panel of experts from the Peruvian government explored how the conclusions of the report could inform policy design and formulation in the country.
Developed by the United Nations Industrial Development Organization (UNIDO), the IDR 2018 considers the importance of demand as a driver of industrial development. It argues that a critical mass of consumption of manufactures can set in motion a virtuous circle of industrial development – comprising income creation, demand diversification and massification of consumption – but that this requires specific policy measures to attain socially inclusive or environmentally sustainable industrialization.
Cecilia Ugaz Estrada, Director of UNIDO’s Department of Policy Research and Statistics and Alejandro Lavopa, UNIDO Research and Industrial Policy officer, opened the event with a presentation of the key messages of the IDR 2018; drawing out some key findings relevant to Peru.
Ana Maria Vera, Director of Economic Studies at the Ministry of Foreign Trade and Tourism, summarized salient trends in Peruvian trade and highlighted the importance of manufacturing exports as an avenue for economic development. “An increase in manufacturing exports will enable a higher rate of per capita income growth,” said Vera, in line with one important finding of IDR 2018.
Juan Manuel García Carpio, General Director of the Department of Economic Studies and Impact Evaluation at the Ministry of Production, added that export diversification will be important in order to achieve long-term economic growth.
The growing middle-income class in Peru can play an important role in supporting industrial development by creating domestic demand for manufacturing goods and providing incentives for domestic firms to improve the quality of their good, said García Carpio. He however noted that the lack of a “quality culture”, high level of heterogeneity among firms and strong informality rates will need to be addressed.
Humberto Ortiz, representative from the National Institute for the Defence of Free Competition and the Protection of Intellectual Property, highlighted the importance of competition policies to achieve a virtuous circle of manufacturing consumption and industrial development. “To benefit from innovation, consumers need high competition among firms but also information about product characteristics,” said Ortiz, concluding that it is “necessary to reduce the asymmetries of information.”
The event was closed by Javier Dávila Quevedo, Vice-Minister of the Ministry of Production, who highlighted the importance of this type of activities for discussing issues related to industrial development and the way to achieve it in an inclusive and sustainable manner.
“We cannot continue thinking that a sustainable industrialization is not possible,” said Dávila Quevedo, while stressing the importance of the collaboration with UNIDO. He also stressed the need for countries to “align the economic system in such a way that producers and consumers reconciliate industrial activities with the safeguard of the environment.”
Find out more about the IDR 2018 here.
For more information, please contact:
Research and Industrial Policy Officer
UNIDO Research and Industrial Policy Advice Division