Regional Inequality in Peru: Causes, Effects, and Strategies for Equitable Development

Jet Li Jorkaef Jaramillo Lizana

No j2mns, SocArXiv from Center for Open Science

Abstract: Regional inequality in Peru represents one of the most significant challenges to achieving sustainable economic growth and social cohesion. This paper explores the historical, economic, social, and institutional causes of regional disparities, examining how geography and resource distribution have led to uneven development across the country. Drawing on the historical legacy of colonialism, the analysis reveals how extractive economic models and centralized governance have perpetuated inequality, disproportionately affecting rural and indigenous regions such as the Andean highlands and the Amazon basin. The study assesses the economic effects of regional inequality, including its impact on national growth, labor market inefficiencies, and vulnerability to external shocks. Social effects are examined in terms of reduced social cohesion, internal migration, and increased social conflicts, particularly in areas rich in natural resources. The paper also evaluates the implications for human development, focusing on gaps in education, healthcare, and quality of life that perpetuate cycles of poverty and limit opportunities for upward mobility. To address these disparities, the paper proposes several strategies aimed at promoting inclusive development. These include investment in sustainable infrastructure to improve connectivity and access to resources, economic diversification to reduce dependence on volatile extractive sectors, strengthening of education and healthcare services to bridge social gaps, and enhancing regional governance to optimize decentralization and resource management. The paper concludes by emphasizing the importance of reducing regional inequality for the sustainable development of Peru. It argues that equitable development is essential for fostering national unity, economic resilience, and social well-being. Future research directions are also identified, including the impact of climate change on regional inequality, the role of digital technology in bridging gaps, and the potential for community-based approaches to resource management. By understanding and addressing the root causes of inequality, Peru can lay the foundation for a more inclusive and prosperous future for all its citizens.

Date: 2024-11-13
New Economics Papers: this item is included in nep-env, nep-geo and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:j2mns

DOI: 10.31219/osf.io/j2mns

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