Peru: financing for development and its recent evolution

Abstract

The poor performance of Latin American economies, especially Peru, in recent years, brings us back to the need to analyze financing for domestic development. This brief article seeks to present the changes that, during and after the pandemic, have taken place in the institutions and mechanisms of public financing for development in Peru. We briefly review the previous history, the response to the pandemic and its subsequent transformation. We discuss the strong response of public financing to the economic crisis of the pandemic, how the mechanisms adopted did not facilitate institutional modernization, and the subsequent political conditions that have led to its rapid return to the previous situation with little public policy presence and the predominance of a highly concentrated private banking sector.