Peru boosts the productivity and competitiveness of its economy through the strengthening of public institutions and actions to improve regulatory quality and planning in favor of private investment and innovation, with the support of a $50 million loan approved by the Bank Inter-American Development (IDB).
The Productivity and Competitiveness Improvement Program is the first of two operations under the IDB Program Reform Support Program Loan modality. This type of loans grants financing once the commitments of policies and actions assumed by the country have been fulfilled. Through this instrument, the Government of Peru has the Bank's technical support to achieve its short-term objectives, as well as the accompaniment to the medium-term agenda for the improvement of productivity and competitiveness in key productive sectors.
Under the Program, since 2018 the Government of Peru has developed, agreed and approved the National Competitiveness and Productivity Policy, strengthening the National Competitiveness and Formalization Council and the public-private and public-public coordination bodies of the Ministry of Economy and Finance (MEF) in new sectors with high competitive potential, such as forestry.
Likewise, this Program recognizes the actions carried out by Peru to improve the sectorial, transversal and planning regulatory quality to accelerate investment in key productive sectors, through the work carried out by the executive tables, the promotion of free competition, and the prioritization and articulation of public investment in a set of infrastructure projects necessary for a first closing of gaps by 2025, incorporating a sectoral and territorial perspective.
Finally, the Program also includes the recognition of innovation support policy commitments through the improvement in the governance of the national innovation system, the extension of the scope of public policies to support innovation through, for example, from improvements in the tax benefit to research and technological innovation expenses, and facilitation actions to access the protection of intellectual property rights, benefiting small and medium enterprises and innovative entrepreneurs.
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.