The Peruvian economy faces the challenge to create an effective social protection network, which does not distort the proper performance of the economic market, Peruvian Ambassador to the U.S. Luis Miguel Castilla affirmed on Wednesday.
At the Latin American level, policies aimed at enhancing the labor market have not been developed. "Thus, a challenge in the short-term is to generate an effective social protection network, which does not distort the proper market performance [...]," the Ambassador indicated.
According to Mr. Castilla, social programs are not addressed to low-skilled urban population.
"We have temporary public employment programs [...]. These initiatives have had a positive social impact, but we must focus on other tools to tackle the problems for a potential group composed of labor-force that could not find a job," the former Finance Minister told.
In this sense, he said the temporary employment programs in the region tend to perpetuate. Thus, it is very difficult to graduate them.
"In Peru, there was a very effective experience that consisted of intending to link them [programs] to the execution of great social impact projects; a good idea is to bond these temporary job programs to training," he expressed.