Peru and its challenge in managing resources for the construction of decent housing

Peru is not a country poor in resources, but in the way those resources are managed and distributed. Despite the cultural richness, diversity, and entrepreneurship of its population, monetary poverty and economic vulnerability affect more than half of Peruvians. However, there are sectors that show significant potential for the country's economic and social development, such as informal housing construction. According to data from the National Institute of Statistics and Informatics (INEI), informal housing construction generates around S/25.000 billion annually directly, which is equivalent to 10% of the public budget approved for 2024. This sector represents a major economic engine, involving a significant portion of the Economically Active Population (EAP) and contributing significantly to the labor productivity of the Peruvian economy. Despite the importance of this sector, there are challenges regarding access to housing loans, especially outside Lima and Callao. Social housing programs are not effectively reaching the majority of families, forcing them to turn to the informal market. This issue was discussed at a meeting organized by UN-Habitat and Grade, where the need to work on financial inclusion, improve urban planning, and strengthen State decentralization was emphasized. One of the main obstacles identified is the lack of leadership and comprehensive focus in key institutions such as the Ministry of Housing and the Ministry of Economy. While the former is limited by an organizational structure that does not comprehensively address the housing problem, the latter maintains an efficiency-driven vision of investment, without considering the economic and social impact of reducing the housing gap. It is crucial to change these approaches to improve the quality of investments and promote policies that encourage sustainable urban development and financial inclusion. Collaboration between the public and private sectors is essential to drive innovative projects that harness the economic potential of the population and improve the living conditions of Peruvians. In summary, Peru is not a country poor in resources, but in the way those resources are managed and distributed. There is significant potential in sectors such as informal housing construction, which can be key to the country's economic and social development. However, a change in focus and greater coordination between institutions is necessary to more effectively channel efforts into building cities and dignified, safe housing for all Peruvians. #WeAllWin.