PERU TAKES THE OTHER PATH

Peru has been experiencing fast growth -- better than 6 percent annually -- for almost seven years. The key reform that has made all this possible is the opening of the economy, which until 1990 had very high tariffs designed to protect local industries:

• In 1990, inflation reached 7,000 percent, but over the past six years it has averaged 2.3 percent.
• That means that even before any other changes in government policy, every Peruvian has enjoyed a tax cut and a boost to his savings power.

All of this has been supported by the deregulation and privatization of key sectors like telecom and banking. And the biggest beneficiaries of openness have been consumers...

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