Corruption and crime: the great fears of businessmen

Crime is the biggest risk for Peruvian entrepreneurs, according to the 2024 Business Fears Ranking by Peru Top Publications.

In 1998, when the first ranking was published, fear related to the unsafety It was ranked 18th. However, between 2005 and 2015, this fear rose to first place.

According to the publication, this indicates that, over the years, the actions of the authorities have been “insufficient” to manage the situation of insecurity. Corruption is in second place in the ranking. According to the publication, Comptroller’s OfficeThis problem, rooted in the public sector, caused the country to lose approximately S/24,268 million last year.

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“Peruvians have seen six presidents come and go, with subsequent changes of ministers, vice-ministers and other authorities, which creates uncertainty for investors and the paralysis of public works and infrastructure processes,” the publication says.

Uncertainty also stems from the lack of clarity over the duration of the current president’s term. In Boluarte and who will be his successor. “This creates a perception of Peru as an unfavourable and unsafe place for foreign and local investment,” he added. This fear remained in the top spots until 2004, but then it fell out of the top five to date.

The recession ranked fourth. Last year, Peru experienced a drop of 0.55%, its worst result in 25 years (not counting 2020 due to the pandemic).

“In addition to the effects of the recession on business investment decisions, the worst part is for an economy that is struggling to curb the advance of poverty and unemployment,” he stressed.

He Congress It is also positioned among the five main fears, due to the high percentage of disapproval towards this branch of the State, the result of decisions that have impacted the autonomy of various organizations and that have prioritized populism.

The Local Problem

According to Peru Top Publications, the 2024 survey highlights the concentration of fears on local issues and “how this uncertainty could be affecting the long-term vision in some sectors.”

“In 2024, seven of the top 10 fears are related to political issues,” the report said.

The top 10 fears also include terrorism, loss of democracy, labour laws, lack of local investment and inflation.