A Strategy for Sustaining Growthand Prosperity for Peru: Cade 2010

Click here to load reader

  • date post

    12-Nov-2014
  • Category

    Travel

  • view

    961
  • download

    1

Embed Size (px)

description

Michael Porter

Transcript of A Strategy for Sustaining Growthand Prosperity for Peru: Cade 2010

  • 1. A Strategy for Sustaining Growth and Prosperity for Peru Professor Michael E. Porter Harvard Business School Urubamba, Peru November 12, 2010This presentation draws on ideas from Professor Porters books and articles, in particular, Competitive Strategy (The Free Press, 1980); CompetitiveAdvantage (The Free Press, 1985); What is Strategy? (Harvard Business Review, Nov/Dec 1996); Strategy and the Internet (Harvard BusinessReview, March 2001); and a forthcoming book. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form orby any meanselectronic, mechanical, photocopying, recording, or otherwisewithout the permission of Michael E. Porter. Additional information maybe found at the website of the Institute for Strategy and Competitiveness, www.isc.hbs.edu. Version: November 27, 2009 1 Copyright 2010 Professor Michael E. Porter
  • 2. Recent Performance of the Peruvian Economy Peru has been one of the most remarkable economic growth stories of the last decade, both compared to its own historic record and to its peers 2 Copyright 2010 Professor Michael E. Porter
  • 3. Perus Prosperity Performance GDP per Capita 1950-2009 (in 1990 PPP US$) CAGR: CAGR: CAGR: $6,000 +2.07% - 0.73% +4.41% $5,000 $4,000 $3,000 $2,000 $1,000 $0 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2009Note: PPP using Geary Khamis calculation methodology. Source: Groningen Growth and Development Centre, Total Economy Database (June 2009) 3
  • 4. Prosperity Performance Selected Countries, 1999 to 2009PPP-adjusted GDP per Capita, 2009 ($USD) $ 20,000 United States ($46,460) Canada ($37,840) $ 18,000 $ 16,000 Panama Russia Mexico Chile Argentina $ 14,000 Malaysia Trinidad & Tobago Uruguay Venezuela $ 12,000 Brazil Dominican Republic $ 10,000 Cuba Costa Rica Guatemala Colombia $ 8,000 Belize Thailand Peru Ecuador China $ 6,000 El Salvador Jamaica Bolivia $ 4,000 Paraguay Honduras Indonesia Philippines India Nicaragua Vietnam Laos $ 2,000 Haiti Cambodia $0 0% 2% 4% 6% 8% 10% 12% 14% Growth of Real GDP per Capita (PPP-adjusted), CAGR, 1999 to 2009Source: EIU (2010), authors calculations 4
  • 5. Recent Performance of the Peruvian Economy Peru has been one of the most remarkable economic growth stories of the last decade, both compared to its own historic record and to its peers Sound macroeconomic policies since the mid 1990s, trade opening and a supportive international economic environment have allowed the country to prosper 5 Copyright 2010 Professor Michael E. Porter
  • 6. Export Intensity Exports as % Selected Countries GDP, 2009 80% Trinidad & Tobago 70% Panama Thailand Vietnam 60% Belize 50% Paraguay Honduras Cambodia Chile 40% Costa Rica Bolivia Nicaragua Jamaica Ecuador China 30% Canada Russia Uruguay Mexico Peru Indonesia Guatemala 20% Dominican Republic El Salvador Argentina Venezuela India Colombia Cuba 10% Haiti Brazil USA 0% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% Change of Exports as Share of GDP, 1999 to 2009Source: EIU (2010) 6
  • 7. Recent Performance of the Peruvian Economy Peru has been one of the most remarkable economic growth stories of the last decade, both compared to its own historic record and to its peers Sound macroeconomic policies since the mid 1990s, trade opening and a supportive international economic environment have allowed the country to prosper Improvements in basic security and political stability provided an important pre- condition for these achievements HOWEVER Growth has been highly heterogeneous across different segments of society and different parts of the country 7 Copyright 2010 Professor Michael E. Porter
  • 8. Unemployment Performance Unemployment Selected Countries Rate, 2009 16% Improving Deteriorating