on Thursday said it is impossible to speak of a developed country if there is no functioning and optimal civil service.
"When a large company turns to a State-run entity for the development of a task, it does not have an interlocutor who truly understands what the company needs," Velarde stated.
"That is indeed pathetic and very problematic," he added during his presentation at the 62nd edition of CADE Executives held in the southern city of Arequipa.
Velarde said it is almost impossible to imagine significant growth without a proper civil service.
"This is a reform that we must boost as soon as possible if we want to achieve higher growth rates," he noted.
The BCR head stated that, although it is true that Peru has grown more than the rest of South America, this growth has slowed down, and there are several factors that influence this.
"A more recent (example) has been political instability with a potential change in the rules of the game. There has been much discussion about the political and economic spheres being separate, and that is true. If the change is made by those who maintain the same economic framework, the rules of the game remain unchanged," Velarde indicated.
"But when there is a prospect of a change in the rules of the game, the situation is different; we have experienced very dire situations in this regard, such as the largest capital flight in our history, recorded in 2021," he added.
Velarde remarked that this situation affects confidence and security, since no one could feel safe in a place where their savings are at risk.
"This is something unimaginable, something that does not cross anyone's mind, but it actually happened in Peru, and it certainly has an impact that takes some time to dissipate," he indicated.