In all honesty, it is not currently a good time for Canadians to invest in Peru.
The economy and government in Peru is extremely unstable and it is not worth the risk to invest money in the country. The
country's currency is also very unpredictable and if one were to invest in the Peruvian market, even with a successful investment,
all may still be lost due to the lackluster currency. There also are not many goods and services that are of high demand from
within the country.
In the capital city, Lima, one third of all capable people are currently
unemployed. This unemployment rate has lead to many problems, one of which is financial difficulty which in turn has lead
to a high crime rate of youth. Other problems that a Canadian company might have include the regular practice of child labour
in Peruvian business. The common use of children for work is a way of life in third-world countries, so unless North American
companies are willing to condone such behaviour, they might have difficulty "fitting in" with a business environment which
is run so much different than home. Peru's human rights record has also been relatively poor in several areas, including
protection of civil and political rights. This further demonstrates Peru's contrasting way of life to Canadians, and could
be very problematic for an expanding North American business whose roots value human rights.
Peru is still a developing nation and their industrial and commercial
companies are not very advanced in technology. Peru is trying to obtain more recognition by other nations and organizations
by joining these well-known groups and pacts around the world. However, joining these organizations has not necessarily helped
them in further developing their country. Peru does not export or import many products, but rather they act independently
and produce all of the necessities that they need. Because of this, shares in a company rarely fluctuate, and remain stable.
The country's imports and exports are mainly natural resources, but still only exports about $9 billion per year.
In current times, with high risk of war terrorist acts, and other potentially
delicate global phenomena occurring, countries that would be a smart investment would be those with excellent homeland security
and also who are uninvolved in any form of terror. Recently, terrorists have been arrested and interrogated in Peru for hijacking
airplanes and plotting terrorist attacks. In the event of war, Peru could become a potential target since they have inadequate
security, their economy would be in greater turmoil than it currently is in.
Since Peru is a developing nation, it is likely that a few decades
from now (or when they are more developed) they would be a great county to invest in. For example, their GDP's growth rate
was 4% as of 2003, which made a significant increase since 2001 when it was only about 0.3%. Although the statistics do not
show that investments in Peru would be stable and reliable, they do illustrate that if Peru keeps growing the way it
has, that they will be a great country to invest in for the near future.