#CADEejecutivos: Clear laws and formalization are the way to solve Lima’s problems and empower it as an engine of development

According to figures from the National Institute of Statistics and Informatics (INEI), Metropolitan Lima represents 50% of the Peruvian Gross Domestic Product (GDP) and 30% of the country’s population. Lima, without a doubt, is a great engine for the economy and development of the rest of the country. However, despite its undoubted importance, it continues to be the victim of serious problems such as citizen insecurity, corruption and the lack of adequate infrastructure.

In order to learn more about the challenges and opportunities for inclusive economic growth and the generation of well-being of the citizens, in CADE Executives, a business forum organized by IPAE Business Association, the session “Voces de Lima y Callao” was held. It was attended by Máx Barrueto, Representative of the Trade Union Centrals in the National Council for Competitiveness and Formalization; Aldo Facho, Urban Architect associated with FD Arquitectos and Co-founder of the Latin American Network of Urban Planners; Georgette Montalván, Central Finance Manager of Grupo Centenario; and Susana Saldaña, President of the Gamarra Peru Business Association. The session was directed by José Carlos Saavedra, Partner of APOYO Consultoría.

During the table, the exhibitors agreed that one of the capital’s main challenges is job creation and economic reactivation. To solve this, it is imperative to generate clear rules for the city, which allow the development of businesses and the formalization of informal workers and companies. This implies, for example, creating efficient and well-thought-out regulations to prevent COVID-19 infections, which are adapted to the reality of the city and make effective use of public resources.

Another big problem in Lima is the lack of real future-oriented urban planning. Although the Metropolitan Development Plan to 2040 (Plan Met 2040) is in preparation, it is undoubted that the city has grown without a real order or objective. It is important to direct it towards the future. For this, a citizen commitment is needed, honest authorities and specialists from different fields committed to the future of Lima.

The State and the private sector in the development of the regions

Continuing with the Bicentennial Edition of CADE Executives, the session “Lima and its relationship with the regions” was presented, led by Paola del Carpio Ponce, Research Coordinator of the Development Studies Network and where Carlos Casabonne, Managing Director participated as speakers from URBI Proyectos – Grupo Intercorp, Edgardo Cruzado, Chief of the Advisory Cabinet of the Ministry of Economy and Finance, Ramiro Postigo, Central Manager of Finance and Management Control of Caja Arequipa and Leonie Roca, President of the Association for the promotion of infrastructure .

This session addressed the issue of the role of decentralization and the relationship that exists between the State and the private sector in Lima and the regions of Peru. On this, Edgardo Cruzado mentioned the importance of Lima’s role in terms of national leadership. “We must work on stewardship issues to ensure that intergovernmental coordination is fluid and that has a lot to do with institutional development,” he said.

Carlos Casabonne agreed that, from the private sector, this issue is key and also highlighted the importance of predictability. “From the State, the national government needs to comply with the norm, so there will be greater predictability in the future of the projects. From the private sector, we must dare to use the mechanisms that the State offers to intervene in the communities ”.

Along the same lines, Ramiro Postigo agreed and also mentioned the role of the State in defining logical and realistic legal frameworks that provide the necessary conditions for the development of investment and protection of the rule of law. “With clear policies we can continue to bet on greater inclusion, greater banking and definitely greater development of the communities,” he added.

At the end of the session, Leonie Roca pointed out the urgency of leaving behind the corrupt practices that have fragmented trust between both actors. In addition, he added that changes of officials should not slow down the progress of the projects. “When this happens, disincentives are generated to continue participating and do not contribute to creating an environment of trust for the collaboration of the private sector,” he concluded.

CADE Bicentennial Executives

Under the slogan “Different voices, one Peru”, the most important annual meeting of businessmen at the national level brings together different voices from the regions of the country. This year’s Committee is chaired by Rosario Bazán, Founder and General Manager of Danper, and accompanied by Rolando Arellano, President of Arellano Consultoría para Crecer; Gonzalo Banda, Political Analyst and Professor at the Santa María Catholic University; Humberto Correa, Principal Professor at the University of Piura; Mariela García de Fabbri, General Manager of Ferreycorp; Mariana Rodríguez, President of CADE Executives 2020; Felipe Valencia Dongo, Manager of Business Development of the Strategy Group; Joaquín Valle del Olmo, Managing Director and partner of Boston Consulting Group; Sandro Venturo, Director of Toronja Strategic Communication; Elena Conterno, President of IPAE Business Association and Carlos Gallardo, Manager of National Development of IPAE.

For more information about the event, enter here: https://www.ipae.pe/cade-ejecutivos-2021/

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