Peru | endemic corruption

Summary

Corruption induces significant economic damage, reduces the quality and capacity of public spending, and diverts resources that could be used to improve public education and health systems, as well as infrastructure.

Key points

• Key points:
• In Peru, citizens consider that the main problem that afflicts the country is corruption, a perception that has been maintained since the beginning of 2017.
• Corruption, defined as the abuse of a position of authority for private gain, erodes society's trust in its institutions and democracy, and inhibits economic growth and citizens' quality of life.
• This problem can significantly reduce the capacity of the State to provide quality public goods and services, necessary to increase the productivity and competitiveness of the economy.
• Although it is difficult to estimate the economic damage of corruption, some studies indicate that the amounts can be significant. In Peru, in July of this year, the Comptroller indicated that in 2021 corruption caused economic damage to the country of S/ 24.2 billion (approximately USD 6 billion, an amount equivalent to 2.7% of GDP).

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