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  • map of Peru highlighting coffee departments

    Project

    Latin America

    Peruvian Atlas of Economic Complexity

    The Growth Lab developed The Peruvian Atlas of Economic Complexity as a diagnostic tool that firms, investors and policymakers can use to visualize economic patterns and geographical distribution of exports, assess the export ecosystems of departments and provinces, and identify potential opportunities for diversification of products in each location.
  • wooden houses on a river in Peru

    Project

    Latin America

    Promoting Sustainable Economic Growth and Structural Transformation in the Amazon Region of Loreto, Peru

    This project is aimed at providing inputs and policy recommendations to accelerate the development of the region and generate prosperity in a sustainable way.
  • wooden houses on a river in Peru

    Project

    Peru

    Transformación estructural y restricciones limitantes a la prosperidad en Loreto, Perú

    Sembrado en el flanco oeste de la selva amazónica, Loreto es un lugar de contrastes. Es el departamento más grande del Perú, pero también está entre los de menor densidad […]
  • Working Papers

    Hausmann, R., et al., 2020

    Buscando virtudes en la lejanía: Recomendaciones de política para promover el crecimiento inclusivo y sostenible en Loreto, Peru

    Loreto es un lugar de contrastes. Es el departamento más grande del Perú, pero se encuentra entre los de menor densidad poblacional. Su capital, Iquitos, está más cerca de los […]
    Growth Lab

    Loreto es un lugar de contrastes. Es el departamento más grande del Perú, pero se encuentra entre los de menor densidad poblacional. Su capital, Iquitos, está más cerca de los estados fronterizos de Brasil y Colombia que de las capitales de sus regiones vecinas en el Perú – San Martín y Ucayali. Sólo se puede llegar a Iquitos por vía aérea o fluvial, lo que la convierte en una de las mayores ciudades del mundo sin acceso por carretera. Desde la fundación del departamento, la economía de Loreto ha dependido de la explotación de recursos naturales, desde el boom del caucho a finales del siglo XIX y principios del XX hasta la extracción petrolera y explotación de recursos forestales que predomina en nuestros días. Este modelo ha traído consigo daños ambientales significativos y ha producido un patrón de crecimiento lento y volátil, que ha abierto una brecha cada vez más amplia entre la economía de la región y la del resto del país. Entre 1980 y 2018, Loreto creció a una tasa promedio compuesta anual cuatro veces menor a la del resto del Perú. Es decir, mientras el resto del Perú triplicó el tamaño de su economía, la de Loreto creció algo menos que un tercio.

    En la última década (2008-2018), la región también se ha venido distanciando de sus pares amazónicos en el país (Ucayali, San Martín y Madre de Dios), que han crecido a una tasa promedio anual cinco veces mayor. En este período, el ingreso promedio por habitante en Loreto ha pasado de ser tres cuartas partes del promedio nacional en 2008 a menos de la mitad para 2018. Además del rezago económico – o quizás como consecuencia de él -, Loreto también se ubica entre los departamentos con peores indicadores de desarrollo social, anemia y desnutrición infantil del Perú.

    En este contexto, el Laboratorio de Crecimiento de la Universidad de Harvard se asoció con la Fundación Gordon and Betty Moore para desarrollar una investigación que proporcionara insumos y recomendaciones de política para acelerar el desarrollo de la región y generar prosperidad de forma sostenible.

  • Working Papers

    Hausmann, R., et al., 2020

    Diagnóstico de Crecimiento de Loreto: Principales Restricciones al Desarrollo Sostenible

    Sembrado en el flanco oeste de la selva amazónica, Loreto se encuentra entre los departamentos más pobres y con peores indicadores sociales del Perú. El desarrollo enfrenta allí un sinfín […]
    Growth Lab

    Sembrado en el flanco oeste de la selva amazónica, Loreto se encuentra entre los departamentos más pobres y con peores indicadores sociales del Perú. El desarrollo enfrenta allí un sinfín de barreras, pero no todas son igualmente limitantes y tampoco hay recursos para atender todos los problemas a la vez. El Laboratorio de Crecimiento de la Universidad de Harvard, bajo el auspicio de la Fundación Gordon and Betty Moore, ha desarrollado un Diagnóstico de Crecimiento que buscar identificar las restricciones más limitantes, y priorizar las intervenciones de políticas públicas alrededor de un número reducido de factores con el mayor impacto. La investigación, que se fundamenta en análisis de bases de datos nacionales e internacionales, e incluye factores cuantitativos y cualitativos derivados de las visitas de campo, identifica a la conectividad de transporte, los problemas de coordinación asociados al autodescubrimiento, y la energía eléctrica, como las restricciones más vinculantes para el desarrollo de Loreto. De acuerdo con nuestras conclusiones, mejoras en la provisión de estos tres factores tendrían un mayor impacto sobre el desarrollo sostenible de la región que mejores en la educación y los niveles de capital humano, el acceso a financiamiento, y otros sospechosos habituales. Este reporte es el segundo de una investigación más amplia – Transformación estructural y restricciones limitantes a la prosperidad en Loreto, Perú – que busca aportar insumos para el desarrollo de políticas públicas a escala nacional y regional que contribuyan a promover el desarrollo productivo y la prosperidad de la región.

  • Book Chapter

    Cheston, T., 2025

    Economic Prosperity With Environmental Preservation

    Cities in Amazonia: People and Nature in Harmony, 165-167.

    The publication sheds light on the ongoing urbanization in Amazonia and emphasizes the need for urgent action to guide it towards sustainability, improving both forest protection and the well-being of its residents.

    This book explores the complex and rapidly evolving urbanization of Amazonia, a vast, diverse, and ecologically critical region undergoing a profound transformation. Amazonia is now home to nearly 41 million urban residents across 895 settlements — and yet its urbanization remains poorly understood, underestimated in scale, fragmented in form, and frequently overlooked in policy.

    Through multidisciplinary perspectives and contributions from more than 50 experts, this book examines how urban growth intersects with environmental degradation, social inequality, and gaps in governance. Despite these challenges, cities in Amazonia are also places of promising innovations, from tailored healthcare services and environmental monitoring to community-led planning and cross-border cooperation.

    Rooted in both local insight and regional coordination frameworks, including the Amazonia Forever program, this work offers a holistic and evidence-based understanding of urbanization in Amazonia. It argues for urgent, coordinated action to guide sustainable, inclusive development — before current urbanization trajectories lead to irreversible ecological and social consequences. The book invites researchers, policymakers and practitioners to recognize Amazonia’s cities not only as sites of vulnerability but as key agents in shaping the region’s — and the planet’s — future.

    Chapter four highlights successful practices and innovative approaches that address this region’s urban challenges. Some focus on people, improving healthcare, and mapping needs for riverine communities. Others emphasize environmental care, with cities leading sustainability efforts, nature-based solutions, partnerships and ecosystem restoration to boost resilience. It also stresses the importance of increasing prosperity by finding opportunities even under difficult, cross-border conditions

    Keywords: urbanization, cities, urban areas, sustainability, climate, productivity, well-being, infrastructure, Amazonia, urban development

    JEL Codes: R11; R12; O18; R58; J24; R42; Q54; Z13

  • Working Papers

    Hausmann, R. & Klinger, B., 2008

    Growth Diagnostics in Peru

    This paper presents a growth diagnostic of Peru. It notes that although Peru has recently enjoyed high rates of economic growth, this growth is actually a recovery from a significant […]
    Growth Lab

    This paper presents a growth diagnostic of Peru. It notes that although Peru has recently enjoyed high rates of economic growth, this growth is actually a recovery from a significant and sustained growth collapse that began in the 1970s. The growth collapse was caused by a decline in export earnings due to the fall in international prices and an inadequate investment regime in export activities that led to a fall in market share. This situation led to collateral damage in the form of a balance of payments, fiscal and financial crisis, accompanied by hyperinflation and violence, but these aspects were corrected in the 1990s. However, the transformation of the export sector has been surprisingly small: the same activities that declined – mining and energy – are the ones that are leading the current recovery in exports to levels that in real per capita terms are similar to those achieved 30 years ago. We argue that the lack of structural transformation is associated with Peru’s position in a poorly connected part of the product space and this accentuates coordination failures in the movement to new activities. In addition, Peru’s current export package, is very capital intensive and generates few jobs, especially in urban areas where the bulk of the labor force is now located. This limits the welfare benefits of the current growth path. The key policy message is that the public sector must act to encourage the development of new export activities that better utilize the human resources of the country. This involves action on the macro front to achieve a more competitive real exchange rate, improvements in the capacity to solve coordination failures in the provision of specific public sector inputs and programs to stimulate investment in new tradable activities.

  • Working Papers

    Hausmann, R., et al., 2020

    La Riqueza Escondida de Loreto: Análisis de Complejidad Económica y Oportunidades de Diversificación Productiva

    El Laboratorio de Crecimiento de la Universidad de Harvard, bajo el auspicio de la Fundación Gordon and Betty Moore, ha desarrollado esta investigación para identificar las capacidades productivas existentes en […]
    Growth Lab

    El Laboratorio de Crecimiento de la Universidad de Harvard, bajo el auspicio de la Fundación Gordon and Betty Moore, ha desarrollado esta investigación para identificar las capacidades productivas existentes en Loreto y las actividades económicas con potencial para liderar la transformación estructural de su economía. Este reporte forma parte de una investigación más amplia – Transformación estructural y restricciones limitantes a la prosperidad en Loreto, Perú – que busca aportar insumos para el desarrollo de políticas públicas a escala nacional y regional que contribuyan a promover el desarrollo productivo y la prosperidad de la región, tomando en cuenta sus características particulares.

  • Working Papers

    Hausmann, R., et al., 2023

    Looking for Virtue in Remoteness: Policy Recommendations for Sustainable and Inclusive Growth in the Peruvian Amazonia

    Loreto is a place full of contrasts. Although it is the largest department in Peru, it is one of the least populated in the country. Its capital, Iquitos, is closer […]
    Growth Lab

    Loreto is a place full of contrasts. Although it is the largest department in Peru, it is one of the least populated in the country. Its capital, Iquitos, is closer to Brazil and Colombia’s border states than it is to the capitals of its neighboring regions in Peru – San Martin and Ucayali. Iquitos can only be reached by air or river, making it one of the largest cities in the world without road access. Since its foundation, Loreto’s economy has depended on the exploitation of natural resources: from the Amazon rubber boom at the end of the 19th and the beginning of the 20th centuries, to the oil extraction and exploitation of forest resources that predominate today. This model has brought with it significant environmental damage and has produced a pattern of slow and volatile growth, which has opened an ever-widening gap between the economy of the region and that of the rest of the country. Between 1980 and 2018, Loreto grew at an average compound annual growth rate four times lower than the rest of Peru. Otherwise stated, while the rest of Peru has tripled the size of its economy, Loreto increased it by just under one-third.

    Within the last decade (2008-2018), the region has distanced itself from its Amazonian peers in the country (Ucayali, San Martín, and Madre de Dios), which have grown at an average annual growth rate five times higher. Loreto’s average per capita income fell from three-quarters of the national average in 2008 to less than half of it by 2018. In addition to – or perhaps as a consequence of – its economic challenges, Loreto is also among the departments with the worst indicators of social development, including the highest levels of anemia and child malnutrition in Peru.

    In this context, the Growth Lab at Harvard University partnered with the Gordon and Betty Moore Foundation to develop a research study that would provide inputs and policy recommendations to boost the development of the region and foster sustainable prosperity.

  • Working Papers

    Hausmann, R., et al., 2021

    Loreto’s Hidden Wealth: Economic Complexity Analysis and Productive Diversification Opportunities

      This report has three main objectives. Firstly, to identify and assess the agglomeration of know-how that is currently present in Loreto’s existing economic activities. Secondly, to define technological proximity metrics […]
    Growth Lab

     

    This report has three main objectives. Firstly, to identify and assess the agglomeration of know-how that is currently present in Loreto’s existing economic activities. Secondly, to define technological proximity metrics based on available data in order to identify the economic activities that generate the most value-added and which require similar productive capacities to those that are already present in the region. Finally, this paper seeks to identify those economic activities that are relatively “adjacent” to Loreto’s stock of productive know-how and which, therefore, have high potential to lead the productive transformation of its economy.

    The Growth Lab at Harvard University, with funding provided by the Gordon and Betty Moore Foundation, has undertaken this investigation with the aim of identifying the existing productive capacities in Loreto, as well as the economic activities with potential to drive the structural transformation of its economy. This paper is part of a broader investigation – Promoting Sustainable Economic Growth and Structural Transformation in the Amazon Region of Loreto, Peru – which seeks to contribute with context-specific inputs for the development of national and sub-national public policies that promote productive development and prosperity in this Peruvian state.