Natural resource profits and the implications for Peru's public health system

Abstract

Purpose – The Peruvian Canon system was designed to collect a percentage of taxed profits from the country's natural resource industries and redistribute these funds into communities that are important to the natural resource extraction process. However, these communities often lack significant basic resources, such as adequate public health facilities and basic medical supplies. The paper aims to discuss these issues. Design/methodology/approach – This analysis focusses on the political and economic factors within Peru's Canon distribution system and proposes public policy strategies that could more effectively ensure natural resource profits reach extraction zone communities. Findings – Policymakers should consider the implementation of policies that require a transparent Canon collection and distribution system. Policies should be developed that mandate an adequate percentage of Canon funds for investment in Peru's public health system. Research limitations/implications – A significant portion of the available literature on local conditions within natural resource extraction communities and systematic empirical data available are lacking. Originality/value – This analysis can lead to the development and implementation of public policy that more effectively targets improvements throughout Peru's natural resource communities.