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United Nati Ons Limited UNITED NATI ONS LIMITED ECONOMIC vcn.«A.29 MujrT^H« June 1967 ENGLISH SOCIA*tY1fHlinH|tfmtltlHHimmilllHmtm*llttlfHIHlHimHmittMlllHlnmHmiHhtmumL COUNCIL n ^^ «mawi, «wo» ECONOMIC COMMISSION FOR LATIN AMERICA Santiago, Chile THE INDUSTRIAL DEVELOPMENT OF PERU prepared by the Government of Peru and submitted by the secretariat of the Economic Commission for Latin America Note: This document has been distributed in Spanish for the United Nations International Symposium on Industrial Development, Athens, 29 Novetnberwl9 December 1967, as document ID/CONF,l/R.B.P./3/Add. 13. EXPLANATORY NOTE Resolution 250 (XI) of 14 May 1965, adopted by the Economic Commission for Latin America (ECLA) at its eleventh session, requested the Latin American Governments "to prepare national studies on the present status of their respective industrialization processes for presentation at the regional symposium". With a view to facilitating the task of the officials responsible for the national studies, the ECLA secretariat prepared a guide which was also intended to ensure a certain amount of uniformity in the presentation of the studies with due regard for the specific conditions obtaining in each country. Studies of the industrial development of fourteen countries were submitted to the Latin American Symposium on Industrial Development, held in Santiago, Chile, from 14 to 25 March 1966, under the joint sponsorship of ECLA and the Centre for Industrial Development, and the Symposium requested ECLA to ask the Latin American Governments "to revise, complete and bring up to date the papers presented to the Symposium". The work of editing, revising and expanding the national monographs was completed by the end of 1966 and furthermore, two new studies were prepared. The ECLA secretariat attempted, as far as possible, to standardi the presentation of the reports, in order to permit comparison of the experience of the different countries with regard to specific problems, particularly in the field of industrial policy. The national studies on industrial development, to be presented to the International Symposium relate, in alphabetical order, to the following countries: Argentina, Bolivia, Brazil, Central America, Chile, Colombia, Cuba, Ecuador, Guyana., Mexico, Panama, Paraguay, Peru, Trinidad and Tobago, Uruguay and Venezuela. -, v » Pag;e FOREWORD » 1 I, HISTORICAL SUMMARY OF THE INDUSTRIAL DEVELOPMENT OF PERU BETWEEN 1950 AND 1964 • »... 2 II, RELATIVE IMPORTANCE, STRUCTURE AND GENERAL CHARACTERISTICS OF MANUFACTURING INDUSTRY • . h 1. The gross product of manufacturing industry in the total gross domestic product « 4 2. Industrial employment in the total active population e6il 5 3. Industrial investment in the gross formation of capital. C 4. The contribution of the'principal branches of industry to manufacturing industry as a whole ................... 12 5. General conditions of the development of production .... 16 6. Supply of raw materials and intermediate products 19 7. Characteristics of foreign trade * 20 8« Financing of manufacturing industry 2? 9. Size and characteristics of industrial establishments . » 36 10. Employment in industry 37 11. Geographical distribution of industrial production «..,>. 39 III. PLANS AND PROGRAMMES FOR INDUSTRIAL DEVELOPMENT 41 1. The Economic and Social Development Plan 1967-1970 ..... 41 2. The general strategy of industrial development ......... 42 3. Bodies having executive responsibilities in industrial development 43 4. Rules for authorization to instal industrial establishments 52 IV. THE MAIN SECTORS OF MANUFACTURING INDUSTRY 54 1. Food industries 54 2. The beverages industry 66 3. Textile industries 68 4. Wearing apparel and footwear industries 75 5. The leather industries 76 6. The pulp and paper industries 78 7. Rubber industries 85 /8. The -li- pase 8. The. chemical industries 88 9. Basic metal industries * - 10. Metal-transforming industries « 122 11. Miscellaneous manufacturing industries IS? V. POLITICAL MEASURES FOR INDUSTRIAL DEVELOPMENT =.............. 133 1. Government action for industrial promotion 133 2. Taxation policy and its effects on industrial development ........................ < 137 3. Promotion policy for exports of manufactures 140 4. Provisions relative to small-scale' industry 140 5. Regional industrial development policy 141 6. Manpower training programmes .;......, 143 7. Technical assistance for industry * 146 8. Technological research 148 9. Part played by the Industrial development organisations in providing basic services for industry •*.....*..«...« 149 10.' • Treatment of foreign capital .......... 149 VI. EXTERNAL ASSISTANCE FOR INDUSTRIAL DEVELOPMENT 153 1. - Technical assistance .................... 153 2. Financial assistance 153 1 3* Other means of transfer of technology 156 VII, OTHER ASPECTS OF ]2©USTRIALDEVELOPMENT 157 VIII. PERUVIAN INDUSTRY AND THE PROSPECTS OF LATIN AMERICAN • INTEGRATION ' 161 IX. -REFERENCE MATERIAL 163 /INDEX OF - vii - INDEX OF TABLES Table Page 1 Peru: Contribution of the gross product of manufacturing industry to the total gross product 3 2 Peru: Real gross domestic product, by sectors of the economy . 5 3 Peru: Number of establishments and employment in manufacturing industries giving information, 1964 7 4 . Peru: Number of establishments, employment and gross production value by sizes of establishments, 1963 8 5 Peru: Final supply and demand 9 6 Peru: Estimated investment in manufacturing industry ......... 10 7 Peru: Account of industries entered in the industrial register during 1960-1964 ». H 8 Peru: Value added of manufacturing industry and growth rates, by industrial divisions . 14 9 Peru: Main products exported 21 10 Peru: Structure of imports, I96C-I964 23 11 Peru: Loans of the Industrial Bank, 1953-1964 29 12 Peru: Commercial bank loans to industry in comparison with total loans, 1953-1963 29 13 Peru: Loans by the Industrial Bank according to size of loans 1962-1963 30 14 Peru: Loans by the Industrial Bank classified by use, 1963 ... 31 15 Peru: Movement of securities, 1961-1965 33 16 Peru: Geographical distribution of manufacturing industry .... 40 17 Peru: Apparent consumption of meat 56 18 Peru: Imports of milk, by types 57 19 Peru: Exports of preserved fish by types, 1964 59 20 Peru: Manufacture of sugar and sugar derivatives 6l 21 Peru: Apparent consumption of edible fat materials 62 22 Peru: Fish meal plants and their raw material reduction capacity per hour 64 23 Peru: Exports of fish oil by importing countries, 1964 ....... 65 24 Peru: Production of the beverages industries 66 25 Peru: Structure of the brewing industry - 1964 * 68 /26, Peru: » viii - Table Page 26 Peru: Imports of machinery for the textile industry ...» 70 27 Peru: Spindle and loom in use in the textile industry 72 28 Peru: Consumption of textiles manufactures 73 29 Peru: Apparent consumption of pulp ....• ....... 78 30 Peru: Apparent consumption of paper and paperboard * 80 31 Peru.: Paper, production by types 82 32 Peru:, Paperboard production by types ............. 82 33- - •Peru: Structure of the pulp, paper and paperboard industry •.« &U 34 Peru: Production, import' and apparent consumption of rubber . ¿ 86 35 1 Peru: Structure of the tyre and inner tube industry 37 36 Peru: Production of certain. chemical compounds 91 37 Peru: Structure of the basic chemicals industry, including fertilizers 96 38 Peru: Final uses of sulphuric acid 97 39 Peru: Apparent consumption of sodium alkalis 98 40 Peru: Island guano, exploitation, sales to domestic • agriculture and export 100 41 Peru: Production of Fertilizantes Sintéticos S.A. 102 42 Peru: Production of artificial and synthetic fibres .*........ 105 43 Peru: Production, imports and consumption of continuous filament rayon yams 106 44" ' Peru: Structure of the synthetic filaments industry .......... 108 45 Peru: Structure of the pharmaceutical products industry 111 46 Peru: Apparent consumption of paints 113 47 " Peru: Production of paints by types, 1961-1964 113 48 ' Peru: Structure of the paints industry 115 49 Peru: industrial production of ., basic metals 117 50 ' ' Peru: Production of the Chimbóte Iron and Steel Works, 1964 •• 118 51 ' Peru: Consumption of iron and steel products in 1964 119 52 Peru: Imports of manufactures of common metals, electrical and non-electrical machinery and transport, material 123 53 Perú: Plastic products industry production ................... 129 54 Peru: Structure of the plastic moulding industry "... 130 55 Peru: Number of pupils matriculating in the State Institutes of Industrial Education (for men) in 1965, by educational levels and by subjects of instruction 144 /FOREWORD FOREWORD The aim of the present work is to describe the state of Peruvian industry in the last few years and to show how its principal sectors have evolved. It is hoped that it will contribute to the prosing and study of the problems relating to industrial development which will be discussed and further investigated in the meetings of the Latin American Symposium on Industrial Development, to be held in Santiago, Chile in March 1966, under the auspices of the Economic Commission for Latin America. This report was commissioned by the National Planning Institute and has been jointly prepared by the research and economic study departments of the National Institute of Industrial Promotion and of the Industrial Bank of Peru, In certain cases the figures used are official, but in others they have been calculated on a provisional basis and will be subject to comparison with the results of the survey of
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