Peru - Economic growth - problems and prospects

NVo tu&tt( RESTRICTED Report No. WH-206a This report was prepared for use within the Bank and its acffliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTIRNATIONAL BANK POR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION ECONOMIC GROWTH OF PERU: PROBLEMS AND PROSPECTS March 31, 1971 South America Department  CURRENCY EQUIVALENTS Currency Unit - Sol (S/) US$1 ' S/38.70 S/1 = us$0.026 S/1,000,000 - US$25,840 US$1,000,000 S/38,700,000 Above rate applies to some 85 percent of total foreign exchange transactions (largely trade) and is used throughout this report. There.is also a draft market r.ate of US$1 S/43.38 Which covers some 15 percent of foreign exchange transactions.  TABLE OF CONTENTS BASIC DATA SUMMARY AND CONCLUSIONS I. RECENT TRENDS: FINANCIAL CRISIS AND STABILIZATION ...... 1 A. The Period Prior to 1967-68 ............1* ............ I B. The Crisis of 1967 and 1966 . ........................ 6 C. Financial Improvement 1968-70 , .. . 7 II. DEVELOPMENT ISSUES AND STRATEGY .. ......................... 11 A. Employment and Growth ............................... 11 B. Income Distribution ....................... 13 C. Resource Mobilization and Resource Allocation ....... 14 Ill. SEC