Rise of a subsistence capitalist economy in Peru

Abstract

The Peruvian economy depends on the export of its mineral resources for its growth. This dependence comes from the role of the country in the international division of labor and is expressed in its export, economic and business structure. Peru dependence on its mineral resources, an economic structure made up mainly of non-tradable sectors and a business structure dominated by micro-enterprises, which makes lasting economic progress very difficult. We argue that the Peruvian economy is divided into an advanced economy and a subsistence capitalist economy (ECS). This structural characteristic of the Peruvian economy prevents the successful implementation of a process that would make the country less dependent on its natural resources and could place it on a path towards development based on greater added value production.