Impact of privatizations in Peru

This article examines the impact of privatization on economic growth and macroeconomic stability in Peru following the structural reforms initiated in 1990. The research focuses on how privatization has simultaneously reduced the fiscal deficit, improved efficiency and competitiveness, and increased productive capacity through private investment. The study analyzes more than 180 privatizations carried out between 1991 and 1998, which generated revenues of US$6,138 million and investment projects totaling US$7,935 million. The methodology employed includes a quantitative approach to assess changes in employment, productivity, and fiscal accounts. The results indicate that, although privatization had a negative short-term effect on employment due to layoffs, more than 560,000 new jobs are projected to be created in the medium term, highlighting a notable increase in service quality and consumer access. The economic policy implications suggest that privatizations should be part of a robust regulatory framework that ensures competition and protects the interests of consumers and workers. (Abstract and audio: Department of Economic Publications)