It is no secret that the political crisis has dragged, under its mantle of instability, the Peruvian economy in the last decade – perhaps longer – in the face of the image it projects towards foreign investment markets. At this point, the release of former dictator Alberto Fujimori could take a special turn at a time when the recession hits the engines of growth and Peru seeks to join the OECD.
Economist José Távara, director of the Central Reserve Bank (BCRP), warned that various analysts and international lawyers who advise companies that invest in Peru see a bad sign in the State deciding to “openly and rudely violate international court rulings.” , based on a decision of the Constitutional Court that would ignore the agreements of the Inter-American Court.
The specialist recalled that the State resorted to the court in The Hague to resolve the conflict with Chile, and even though “one can discuss whether it was right or wrong, no one questioned the legitimacy and force of the sentence.” Accession to the OECD would suffer its first ravages.
It is no secret that the political crisis has dragged, under its mantle of instability, the Peruvian economy in the last decade – perhaps longer – in the face of the image it projects towards foreign investment markets. At this point, the release of former dictator Alberto Fujimori could take a special turn at a time when the recession hits the engines of growth and Peru seeks to join the OECD.
Economist José Távara, director of the Central Reserve Bank (BCRP), warned that various analysts and international lawyers who advise companies that invest in Peru see a bad sign in the State deciding to “openly and rudely violate international court rulings.” , based on a decision of the Constitutional Court that would ignore the agreements of the Inter-American Court.
The specialist recalled that the State resorted to the court in The Hague to resolve the conflict with Chile, and even though “one can discuss whether it was right or wrong, no one questioned the legitimacy and force of the sentence.” Accession to the OECD would suffer its first ravages.
“The same thing happens with international awards. When there is a conflict between international companies that sign, for example, tax stability treaties, they incorporate clauses to resort to international courts in these processes. The awards are respected and that is essential to maintain legal security,” said Távara.
The professor also states that there is a “serious risk of the perception of legal insecurity” following the release of Alberto Fujimori, with an evident “deterioration of the investment climate,” especially for multinationals.
“We are systematically ignoring a series of OECD recommendations aimed at strengthening institutions. There are numerous recommendations that we are not taking into account to protect and guarantee the autonomy of the institutions,” said Távara.
Peru off the radar
For his part, the former Minister of Economy, Luis Miguel Castilla, compares the controversy surrounding the release of Alberto Fujimori with the investigation centered on the Attorney General of the Nation, Patricia Benavides, and finds harmful similarities regarding foreign investment. .
The economist warns that, even though “it is more of a political than an economic issue,” the noise generated by not knowing international treaties in Peru – as would happen if arbitration decisions in ICSID are not known – is negative. He now sees it as impossible for our country to join the OECD in 2026, as the Ministry of Economy and Finance (MEF) had planned.
“Peru must scrupulously comply with all international agreements it signs. If you don’t do it, you lose credibility, and that does not discriminate in the economic or political sphere. For a foreign investor, respect for international law in any country is fundamental,” he asserted.
Peru: corruption and arbitrations as an offer to the investor
The MEF had projected that our country could be ready or “one step away” from joining the OECD in 2026. To this end, last week the organization had evaluated national efforts to be aligned with the international legal instruments. Everything was in vain.
Private investment in Peru is at a standstill. Between July and September, the investment of this type was S/27,722 million, a decline of 6.2% compared to the S/29,567 million disbursed in the same period of 2022, according to the BCRP.
Peru is one of the South American countries most in demand by foreign and national companies, according to ICSID history.
Corruption is another scourge that turns Peru into a hostile place. The Comptroller’s Office reported that in 2022 more than S/25,000 million were lost due to corruption of authorities.
“The same thing happens with international awards. When there is a conflict between international companies that sign, for example, tax stability treaties, they incorporate clauses to resort to international courts in these processes. The awards are respected and that is essential to maintain legal security,” said Távara.
The professor also states that there is a “serious risk of the perception of legal insecurity” following the release of Alberto Fujimori, with an evident “deterioration of the investment climate,” especially for multinationals.
“We are systematically ignoring a series of OECD recommendations aimed at strengthening institutions. There are numerous recommendations that we are not taking into account to protect and guarantee the autonomy of the institutions,” said Távara.
Peru off the radar
For his part, the former Minister of Economy, Luis Miguel Castilla, compares the controversy surrounding the release of Alberto Fujimori with the investigation centered on the Attorney General of the Nation, Patricia Benavides, and finds harmful similarities regarding foreign investment. .
The economist warns that, even though “it is more of a political than an economic issue,” the noise generated by not knowing international treaties in Peru – as would happen if arbitration decisions in ICSID are not known – is negative. He now sees it as impossible for our country to join the OECD in 2026, as the Ministry of Economy and Finance (MEF) had planned.
“Peru must scrupulously comply with all international agreements it signs. If you don’t do it, you lose credibility, and that does not discriminate in the economic or political sphere. For a foreign investor, respect for international law in any country is fundamental,” he asserted.
Peru: corruption and arbitrations as an offer to the investor
The MEF had projected that our country could be ready or “one step away” from joining the OECD in 2026. To this end, last week the organization had evaluated national efforts to be aligned with the international legal instruments. Everything was in vain.
Private investment in Peru is at a standstill. Between July and September, the investment of this type was S/27,722 million, a decline of 6.2% compared to the S/29,567 million disbursed in the same period of 2022, according to the BCRP.
Peru is one of the South American countries most in demand by foreign and national companies, according to ICSID history.
Corruption is another scourge that turns Peru into a hostile place. The Comptroller’s Office reported that in 2022 more than S/25,000 million were lost due to corruption of authorities.
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
