Peru | growth and wellness

Summary

Although economic growth is not everything, it is important because it is usually accompanied by an improvement in the well-being and quality of life of citizens.

Key points

• Key points:
• The countries that have reached higher levels of income per inhabitant are those that have been able to accumulate more physical and human capital (per worker), technological knowledge, and make better use of these factors. These elements raise productivity and thus sustainably increase income.
• Institutions are crucial in explaining why some countries accumulate more of these factors and organize their use better than others. Institutions that generate adequate incentives to invest, work and save, and that align personal interest with social interest, generate an adequate environment for economic growth.
• In today's Peru we see with dismay that the few institutions that we have left continue to be undermined. This puts the prosperity and well-being of millions of people at great risk.

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