The Ministry of Foreign Affairs confirmed yesterday that it received the invitation from the Organization for Economic Cooperation and Development (OECD) to start the process of joining Peru to the institution made up of the 38 most powerful economies in the world.
The Foreign Ministry stressed that this is a historic event for the country because it recognizes the efforts made over the years to implement the standards and good practices required by the OECD.
Likewise, the portfolio recalled that in 2012 Peru expressed for the first time its formal interest in belonging to the OECD, which became a State policy sustained throughout the last decade and ratified in October 2021 by the president. peter castle.
Later, the head of state reiterated the commitment and strengthening of public policies “to be part of the countries with strong and dynamic economies.”
Meanwhile, the Minister of the Economy, Pedro Francke, welcomed the invitation from the OECD and asserted that it is essential to finalize this accession. “We have worked on different aspects with the organization, and we will follow this line to achieve the approval of the roadmap.”
The route to follow
It is worth emphasizing that this event represents just the first step on a path that usually takes a few years, according to José La Rosa, general director of the MEF’s General Directorate of International Economic Affairs, Competition and Productivity.
“It does not go directly through a political decision of the Council (of the OECD) for direct access. The adequacy of the candidate, his legal heritage and his instruments is being reviewed (…) Peru has not yet been issued a roadmap, ”explained the official a week ago before the Cesip-OECD Special Commission of Congress.
In that sense, the OECD indicated that it will begin the evaluation of the candidatures in order to determine if the countries comply with “the preservation of individual freedom, the values of democracy, the rule of law and the protection of human rights”.
In addition, technical reviews will focus on areas such as trade and investment opening, advances in public governance, anti-corruption and climate change efforts, and environmental protection. They also stressed that OECD members must be committed to “an open market economy based on free trade, competition, sustainability and transparency.”
La Rosa added that, once the go-ahead is received by the twenty committees that make up the OECD, the Council makes a “political decision” that approves the access of the applicant and an instrument of incorporation is issued, which must be ratified by the authorities of the country seeking full membership. In general terms, After the invitation to dialogue, between 3 and 5 years pass for eventual accession to the OECD.
It is worth mentioning that together with Peru, Brazil, Argentina, Romania, Bulgaria and Croatia will also begin the inclusion process. Currently, from the region there are only Mexico, Chile, Colombia and Costa Rica.
Economic context
The International Monetary Fund (IMF) yesterday updated its economic growth forecasts for this year, reducing the forecast for Latin America and the Caribbean to 2.4% (0.6% less than in its October report).
The multilateral alleges that the reduction in forecasts is explained because “the fight against inflation has caused a strong monetary response, which will weigh on domestic demand.” However, despite the new calculation, The Peruvian economy continues to have a better forecast compared to the average for the entire region: from 3.2 to 4.4% compared to 2.4% (see infographic).
From the MEF they explained that the gross domestic product (GDP) of 2022 – which would achieve a maximum of 4% – will reach S / 572,000 million, exceeding the official forecast of the Multiannual Macroeconomic Framework 2022-2025 (S / 563,000 million).
In turn, Fitch Ratings reported this Tuesday that Peru has a stability perspective of over 80%, which positions it as one of the most solid countries along with Colombia, Mexico and Chile.
Finally, for BBVA Research, copper production will grow 12.7% during this year, reaching 2.3 million metric tons per Quellaveco, and by 2023 they forecast that 2.6 million metric tons will be achieved.
The requirements to join the OECD
1. Encourage a better education that ensures the realization of the potential of people as human beings and with skills and abilities to meet the labor market demand.
2. Design and implement appropriate policies and reforms to strengthen and, especially, give sustainability to economic and financial growth.
3. The correct design and execution of various research and development programs that stimulate scientific and technological research for innovation.
4. Maintain and extend the liberalization of capital movements.
5. Encourage research and professional training in the local market.
6. Guarantee the expansion of export markets.
reactions
Pedro Castillo, President of the Republic
“With the commitment and strengthening of our public policies, we will be able to enter the OECD to be part of the countries with strong and dynamic economies. We will continue betting for more”.
Oscar Maurtua, Chancellor of the Republic
“This is a historic event because it recognizes the efforts over the years to implement standards and good practices required by the OECD and that will directly benefit our citizens.”
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