The president of the Central Reserve Bank, Julio Velarde, stated that to grow at rates above 3%, our country needs a series of reforms. The head of the monetary authority highlighted among them the improvement of education. He argued that with current levels it is impossible for us not to continue having poor people. According to economist Elmer Cuba, only 40% of primary school students understand what they read, and only 20% of said students can solve math problems for their age.
“To grow you need economic stability, you need education,” he said during his presentation at CADE Executives 2024.
Among other reforms that he described as “deep reforms”, Velarde referred to politics. He said that outside the country there is a perception that the head of state can be changed at any time. Therefore, care must be taken to use ‘nuclear weapons’ as a presidential vacancy.
He also mentioned that a more predictable Judiciary is required.
In the fiscal area, he highlighted that it is necessary to improve the quality of spending, given that without this, the public investment that has been made will not bear fruit.
Velarde was against the tax cuts that have been taking place, such as the reduction of VAT for hairdressers. He said that over time this encourages mercantilism.
developed country
At another time he mentioned that with civil service reform it is impossible for us to be a developed country.
He added that labor flexibility is required, although this would be for new workers.
