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View from Davos January 2 2013

Peru's finance minister refuses to rest on his laurels

Peru is one of the fastest growing economies in South America and is making strong progress in developing its infrastructure to establish itself as a gateway between Asia and Latin America. However, its finance minister is still focused on boosting the country's prosperity and eradicating poverty.
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Peru's finance minister refuses to rest on his laurels

Sitting in his office, at the Peruvian ministry of finance’s understated building in Lima’s historic centre, a Unesco’s World Heritage site, Luis Castilla is more interested in talking about Peru’s planned reforms than he is pondering the country's recent successes, which include a sustained economic growth and some large international investments. It is, however, the modernisation of Peru's civil service, which is intended to introduce a meritocracy and improve efficiency, that Mr Castilla wants to discuss.

“We have a state that really hasn’t upgraded or modernised itself at the same pace as the economy,” he says. “We have been [suffering] in terms of government efficiencies because of lack of appropriate human capital. We are trying to put a bill through congress – a reform that has been postponed several times – but there is the will to undertake it from the president and we now have the resources to fund it.”

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