Social programs in Peru show considerable efficiency in their execution, even having better results than Chile, according to global rating agency Moody’s.
“Peru is much more efficient than Chile in terms of social programs.” “We must remember that these programs have been designed with multilateral organizations such as the IDB, the World Bank, and CAF,” said Jaime Reusche, vice president of Moody’s Investors Service, during an event.
Reusche stressed that this has allowed the fiscal space to be used to meet the objectives set.
“Efficiency allows resources to follow their destination, and there is not so much theft.” This is not the case in Argentina, where, through social programs, Argentines eat their steak and drink good wine; there is quite a lot of theft, almost 4.5% of GDP. “It’s a setback,” he said.
“We also observe that in Peru there are no inflated salaries in the public sector since salaries are relatively low,” the vice president of Moody’s Investors Service said.
Although Reusche pointed out that Peru is efficient in its social programs, it presents deficiencies in the execution of public investment and state purchases.
“In the execution of public works and infrastructure, there is a lot of disaster with resources. According to the IMF, 1.4% of GDP is wasted,” he added.
