Policy wonk digest: Peru

  • Taxes are lower in Peru if you haven’t finished building yet, presumably to encourage construction. So many, many, buildings sport unsightly unfinishedness to maintain the lower tax rate. A particular favourite is steal cables that reach to the sky. Classic #unintendedconsequences.
  • Peru’s railways are structurally separated: one company owns the tracks and any other company can run trains over them. Structural separation is normally spoken of in a telco context (split lines and retailer a.k.a Chorus and Telecom) to foster competition at the retail level.
  • A Chilean firm took over the government’s running of Peru Rail services to Machu Picchu and has increased the frequency and standard of service massively. Another competing called Inca Rail is also operating, something that would be inconceivable without the structural separation, or other regulation.
  • Sadly, we’ve not had enough time to learn much about Peru’s internal conflict in the 1980s and 1990s. What we do know is that the conflict has abated almost completely, and a truth and reconciliation commission more than ten years ago seems to have been a real aid in this process.

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