Mining and the Peruvian economic model

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Peru’s role as an international provider of raw materials is the principal reason why the country’s economic structure is dominated by non-tradable sectors or why the principal tradable sector is the mining sector. The countries in the Global North and, especially, transnational capital, are not particularly interested in the development of other sectors and branches. The lack of this interest is demonstrated in the capital flows that are principally directed towards those sectors that reinforce the country’s role in the international division of labor. Hence it is of no surprise that the top of the Peruvian business structure is occupied by corporations that operate in the extractive sectors of the economy. In more philosophical terms, the relation between Peru’s role in the globalized capitalist world, the economic structure of the country, the character of FDI and the business structure is not causal but dialectical.

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