Exploratory study on corrosive capital in Peru
| Areas | : | Natural resources, extractive industries and social conflict |
|---|---|---|
| Researcher/s in charge | : | Manuel Glave |
| Other researchers | : | Álvaro Hopkins, Marcela Cavassa |
| Execution time | : | May 2023 |
Presentation
Commissioned by the Center for International Private Enterprise (CIPE), GRADE is developing an exploratory study with the objective of conducting a diagnosis of corrosive capital in Peru, in order to support CIPE’s strategy of creating a global initiative to work on corrosive capital. In particular, the study will focus on analyzing internationally funded projects that have potentially deviated from the national regulatory framework, as well as identifying future areas of research.
According to the literature, corrosive capital is defined as financing, whether state or private, with a lack of transparency, accountability and market orientation, which, originating in authoritarian regimes, exploits institutional gaps to influence recipient countries economically, politically and socially. In contrast, constructive capital corresponds to financing flows with adequate management standards at source and destination, responding to the market, with transparent management and accountability to stakeholders in the recipient country. However, the condition of authoritarian regime does not seem to be a necessary condition for capital to constitute corrosive capital, since it is feasible for capital from countries with origins classified as “non-authoritarian” to exploit institutional gaps to influence recipient countries economically, politically and socially.
Thus, the central research questions are: Does corrosive capital exist in Peru, understood as the use of institutional gaps to influence the country? Which institutional gaps represent a risk for the existence of corrosive capital? What are the characteristics of corrosive capital, if it exists?
Project identification number: 1029
