IMPORTANCE OF MINING AND AGRICULTURE ON THE PERUVIAN ECONOMY

Abstract

This paper presents thd Mining and Agriculture sectors contribution to the Peruvian economy. Describes the performance of these sectors, during the last two decades, using macro-economic indicators; besides it describes how in this period the Peruvian economy shows an impressive growth 5.44% in terms of gross domestic product (GDP); this period is also known as the ¨mining boom¨. The excellent performance of mining and agriculture sectors contributed to this economic performance. However, despite the economic growth and changes during the last two decades, extreme poverty, malnutrition and childhood anemia are still a serious problem. To eliminate the extreme poverty Peru has to grow at least 6% per year in terms of GDP. This study proposes that mining and agriculture must keep growing, as well as the other sectors to insure the Peruvian development. It recommends that private and public investment must keep increasing, it recognizes the importance of competitiveness. Another conclusion is that there is no real conflict between mining and agriculture for water resources; since it is needed by both sectors. The recent Peruvian economic is due to the last mining investments and support from the present government.