The Duke GVC Center conducted a study, Opportunities for Upgrading in Peru, commissioned by the World Bank (2015) to support the growth and productivity agenda in Peru with a focus on three important industries for the country: table grapes, mining equipment and pima cotton. The study resulted in three reports with the overarching objectives being to understand the participation of Peru in each GVC and to recommend upgrading trajectories.
Challenge: The goal of the reports was to understand Peru’s position in each sector from the perspective of the global value chain and highlight potential for upgrading.
Approach & Outcome: The Duke GVC Center research team identified opportunities for improvement in the areas of labor productivity, participation of small firms, and creating linkages that would enable the values from these export activities in these three sectors to spill over into the rest of the economy. To take advantage of these opportunities, the research studies highlighted different policy shifts. The report was based on both primary and secondary information sources. In addition to interviews with firms operating in the different sectors and supporting institutions, the reports drew on secondary research and information sources, including Peruvian organizations.
This report analyses the mining equipment GVC and the position of Peru. The country is facing great challenges with the global slowdown of the mining sector. Mining equipment, which is in its infancy, is facing similar problems. The objective of this project was to identify opportunities for industry growth. Key takeaways: Industry is small but growing. Few companies are involved in sophisticated activities, while most manufacture simple products for the local and regional markets. The following upgrading trajectories are recommended: (1) process upgrading to increase the efficiency, ensure local firms can meet global standards, and improve their technological processes, amongst others; (2) consolidate Peru’s position as a parts provider within those segments, and begin to leverage relationships with clients to produce permanent components; and (3) firms that are already competing need to diversify into other segments to mitigate the risk of overexposure to the mining sector.
