Verified Document

Peru Is The Fifth Most Thesis

According to an article found in the Wall Street Journal, Low metal prices will have a negative impact on Peru's economy well into 2009. The article explains that the Lima Stock Exchange which is dominated by mining shed 60% in 2008. This is the most significant percentage loss in the region. The decrease in stock price coincided with the problems occurring in the global economy.

The article also explains that recovery will be slow because of the condition of economic growth world-wide. According to Gustavo Urrutia, chief of research at Peruvian brokerage Centura SAB, "In terms of metals prices, I don't think the outlook will change much (Josephs, 2009)." However, the exchange's president asserts that recovery is most likely at the end of 2009. He asserts that "Stronger activity on the exchange will start when the international economy shows some sign of recovering (Josephs, 2009)." The article also reports that

"The exchange's performance over the last two years was a marked contrast to the advances posted the previous year. The Lima Stock Exchange experienced a record high in 2007 and gained 36%, after a 168% surge in 2006. But a plunge in commodities prices midway through 2008 sent the index into a downward spiral. Last January, macroeconomic indicators showed that Peru's breakneck growth would continue in 2008. But lower metal prices and global financial instability, particularly in the fourth quarter, dispelled ideas that Peru was immune to the international crisis. The index lost more than 37% since Sept. 30. The exchange's General Index closed 2008 at 7048.67 (Josephs, 2009)."

Other literature discusses the prevalence of poverty in Peru and the reasons why the recent economic growth in the country has not led to reduced amounts of poverty. For instance, Altamirano et al. (2004) explains that Peru is stuggling to reconcile the rapid economic growth thtat the company has experienced with the poverty that still exist in the country (Altamirano et al., 2004). The article explains that one of the reasons for the disparities between the rich in the poor is that many people in Peru only have skill sets that are consisten with traditional Peruvian jobs (Altamirano et al., 2004). Many of the jobs are either obsolete or they do not offer the type of income that newer jobs offer (Altamirano et al., 2004). Carnoya and. Luschei (2008) explains this clearly. The authors insists that if sustained economic development is to be realized countries and regions must have the capacity to implement new technologies and educate their labor force to use these technologies (Carnoya and. Luschei, 2008). The authors also explain that within the context of the current global economy, which is characterized by factors such as mobility of capital, economic competition, and expanded information and communications portals, there is a unique opportunity for many countries in Latin America including Peru (Carnoya and. Luschei, 2008).

In addition, Zwane (2007) aserts that poverty may have a profound effect on deforestation. The author asserts that

The contention that poverty causes households to degrade the environment has been made in several contexts (e.g., United Nations [63], World Commission on Environment and Development. In the case of deforestation, the story goes, households would like to invest in maintaining the quality of soil on existing cleared land, or increasing yields on this land, but are unable to do so because they cannot finance the necessary investments (Zwane, 2007)."

The deforestation can lead to a host of other problems in Peru. For this reason many studies...

This crisis is currently affecting Peru as it relates to industries that are connected to mining and hospitality services. Both Mining and the services industries are substantial percentages of GDP in Peru. As is pertains to mining, stock prices are dropping as it relates to metals. Because Peru's natural resources are plentiful as it pertains to precious metals, this decline in worldwide prices for these metals can be economically damaging.
In addition to the metals industry, hospitality services are also affected by poor economic conditions. The poor economic conditions throughout the world mean that people are not traveling as frequently. A good percentage of Peru's economy is dependent upon tourist. The decrease in the number of tourist because of the economic crisis can have a devastating effect on Peru's economy. With this understood the country must adapt certain strategies to ensure that it will be able to weather this financial storm. This might be a very difficult task because of the types of industries that Peru is dependent upon for economic growth.

Overall a preliminary review of the literature reveals that Peru's economy has been quite robust for many years. However, there are still many Peruvians who live in poverty. The research indicates that this is the case because a large percentage of the population does not have the ability to work in certain industries, and they depend on more traditional jobs to survive. As a result jobs that are more geared toward technology and other industries that require additional education and training cannot be performed by many Peruvians. This created huge gaps between the rich and the poor in Peru. In addition, the recent economic woes all over the world have also affected Peru's economy. As a result Peru must extremely mindful of the economic decisions that it makes. Like other nations around the world, Peru must work with other nations around the world during these difficult economic times.

Methodology

A critical analysis approach will be utilized for the purposes of the proposed research. A critical analysis approach is subjective because it simply states the opinion of the writer based on the information presented in the study. This approach was chosen because it allows for the explication of the literature. This is also important because it provides insight concerning how the problem can be addressed. In other words, this approach will allow the researcher to cultivate a solution to the economic issues facing Peru.

This methodology will utilize secondary research. Secondary research is information that already appears in the literature available about the topic. Secondary research is used because it provides the broadest scope of information. A broad range of information is needed in order to determine how Peru should behave during these difficult economic times.

Works Cited

Altamirano, T., Copestake, J. Figueroa, A. Wright-Revolledo K. (2004) Universal and Local Understanding of Poverty in Peru. Global Social Policy, Vol. 4, No. 3, 313-336

Carnoy M.and Luschei T.F. Skill acquisition in 'high tech' export agriculture: a case study of lifelong learning in Peru's asparagus industry. Journal of Education and Work

Vol. 21, No. 1, February 2008, 1 -- 23

Josephs, Leslie. (2009) HD International Finance:…

Sources used in this document:
Works Cited

Altamirano, T., Copestake, J. Figueroa, A. Wright-Revolledo K. (2004) Universal and Local Understanding of Poverty in Peru. Global Social Policy, Vol. 4, No. 3, 313-336

Carnoy M.and Luschei T.F. Skill acquisition in 'high tech' export agriculture: a case study of lifelong learning in Peru's asparagus industry. Journal of Education and Work

Vol. 21, No. 1, February 2008, 1 -- 23

Josephs, Leslie. (2009) HD International Finance: As Go Metals, So, Too, Will Peruvian Stocks . The Wall Street Journa. C2
"Peru." http://www.state.gov/r/pa/ei/bgn/35762.htm
"South America: Peru." https://www.cia.gov/library/publications/the-world-factbook/geos/PE.html
Cite this Document:
Copy Bibliography Citation

Related Documents

Economics, Politics, Trade Geopolitical Base
Words: 7721 Length: 22 Document Type: Term Paper

For the period of the late 1960s and early 1970s, West Germany strived to assist the dollar. The United States and many other nations pushed West Germany to reassess so as to make up for the dollar excess. (Germany in the World Economy) At last, after escalating waves of conjectures, the Bretton Woods system had a collapse in August 1971. All through the post-Bretton Woods period, the deutsche mark stayed

Latin America American Terrorism Issues and Possible
Words: 7613 Length: 25 Document Type: Research Paper

Latin America American terrorism issues and possible convergence with drug cartels in Central and South America Terrorism in Latin America Columbia The leftist National Liberation Army (ELN) United Self-Defense Forces of Colombia (AUC) The leftist Revolutionary Armed Forces of Colombia (FARC) Cuba Venezuela Mexico Iranian Activity and Sponsorship Focus Tri- Boarder area of Argentina, Brazil and Paraguay Regional Overview and Criminal Activities and Concerns Parallel developments of Terrorism and Organized Crime Poverty, Discrimination and Relative Denial Interconnections between Terrorism and Organized Crime Groups Abu Nidal organization (ANO) The

Native Societies and Disease Numerous Reports From
Words: 2339 Length: 8 Document Type: Essay

Native Societies and Disease Numerous reports from European traders, missionaries, soldiers and explorers in the 16th and 17th Centuries reveal the same information about the devastating effect smallpox and other epidemic diseases had on the aboriginal populations of the Americas. Europeans were colonizing Africa and Asia at the same time, but "on no other continent in historic times has a combined disease and Construct phenomenon led to the collapse of an

Vinos Andinos Vineyard Report Dating
Words: 2570 Length: 9 Document Type: Term Paper

Yet another argument in favour of the expansion towards Luxembourg is the fact that the country is most specialized on producing high quality white wines. This means that Vinos Andinos has an increased chance of selling their red and rose wines to a population that might desire a change from Luxemburg's white wines. Switzerland Switzerland (fifth by GDP and sixth by wine consumption) produces low amounts of wine internally, but has an

Joshua's Goldstein Book 5th Edition
Words: 7033 Length: 20 Document Type: Term Paper

history of events in the twentieth century, one might surmise that the twenty-first may not be all that different. Why? Because human nature and the pursuit of self-interest has not changed from one century to the next. To explain what drives international relations, Joshua Goldstein provides a brief history of the world, in addition to information about the geographical features and the consequences of different nation's economies. (Goldstein, 2003)

Ethical Evaluations About Doe Run
Words: 1831 Length: 5 Document Type: Term Paper

With regard to the issue of environment, the company has faced the ire of EPA and lot of other legal authorities for its failure to confirm to emission standards within the permissible limits. The company has not been able to contain emission levels on a year to year basis. With regard to the issue of employment, the employees of the company have occupational hazards being faced by its employees

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now