Economic disparity between Chile and Peru: the challenge of copper and internal policies.

The difference in Gross Domestic Product (GDP) per capita between Chile and Peru is notable and has sparked significant debate among economists and analysts. According to recent data from the World Bank, the per capita income in Chile is approximately US$ 17,093.24, while in Peru it stands at US$ 7,789.87. This disparity raises the question: what factors are behind this economic chasm?

Carlos Prieto, manager of Economic Studies at Banco de Crédito del Perú (BCP), addressed this topic in a recent conference, focusing on a key resource that both countries possess: copper. Prieto highlighted that Chile produces more than 5 million tons of this metal annually, in contrast to the 2.8 million tons produced by Peru. This production not only marks the difference in figures but also reflects the economic structures and policies of each nation.

Copper production is crucial for the Chilean economy. With copper prices showing a considerable increase, Chile has been able to capitalize on this advantage, while Peru, despite its resources, faces difficulties in increasing its production. Prieto mentioned that, in an optimistic scenario, Peru could raise its production to between 4 and 4.5 million tons in the next decade, thanks to projects such as Tía María, Zafranal, and Michiquillay. However, even with this growth, it would still be insufficient to catch up with its southern neighbor.

The importance of the local context becomes evident in this analysis. Despite having favorable external conditions that could boost significant mining investment, Prieto emphasized that it is the internal factors that hinder economic progress. The lack of adequate infrastructure, a climate of insecurity, and the difficulty in retaining talent are some of the problems that Peru must face.

Furthermore, the BCP manager suggested that an increase in mining investment could bring benefits to other sectors of the Peruvian economy, generating jobs, increasing consumption, and ultimately fostering more robust economic growth. However, for this to happen, effective public policies are required to incentivize investment and facilitate development.

The current situation highlights that, although Peru has enormous potential, the implementation of strategic investment projects is essential to leverage it. However, Prieto warns that political instability and social tensions may continue to be significant obstacles that impede the desired investment climate.

Another aspect to consider is how the management of natural resources can influence long-term economic sustainability. Chile's experience in the mining sector has been supported by policies that promote foreign investment and responsible environmental management. In contrast, Peru faces challenges related to public perception of mining and its environmental impact, which can complicate the realization of new projects.

In summary, the difference in GDP per capita between Chile and Peru lies in a combination of productive factors, internal contexts, and economic policies. For Peru, the challenge is to transform its mining potential into real and sustained growth that not only reflects in figures but also benefits the entire population. The path to economic development is complex and requires a comprehensive approach that prioritizes investment, infrastructure, and social well-being.

Meanwhile, the economic future of both countries will depend on how they manage their resources and address their respective realities. Competition in the mining sector and the decisions made in the political and social spheres will be crucial in closing the income gap between these two neighbors in South America.