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A comparative study between Mexico and Peru

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Mexico and Peru, two developing countries, offer many varied opportunities for investment that is necessary and beneficial to capture, for both the development of these countries as well as for the interests of investors. We selected the water sector because this is one of the most important needs in both the countries and addressing them is feasible for the private foreign investors. The manufacturing industry appears to be the most appropriate medium of realizing a project in this sector. In this paper, we will demonstrate what social and commercial developments and taxes our project requires. We will first present a summary using a table, and then will develop it further.

2006 is a year of change in Latin America. Indeed, the orientation towards the left continues (election of Michele Bachelet in Chili and Evo Morales in Bolivia) and Peru and Mexico will soon have new presidents.

In Peru, the new president is social democrat Alan Garcia, who defeated nationalist Ollanta Humala. It should be a huge change in the country since Garcia has promised to increase public spending in education, access to drinking water, etc. But it will be difficult because of economic limitations.

In Mexico, left wing candidate Andres Manuel Lopez Obrador (AMLO) is likely to win over Felipe Calderon Hinojosa. If Obrador wins, he will be the first left wing candidate to lead the country. His program contains some elements characterized by Latin American nationalism and Obrador takes into account the economic constraints of the market.

Population:
? Urban and Multiethnic
? Mayas, Incas and Aztecs in Mexico and Quechua in Peru. Great inequalities exist between indigenous peoples and others.

Human Development in 2003:
? Ranking in the HDI: Peru is 79th (.762) and Mexico is 53rd (0.814) of 177 countries
? 9.9% of the Mexican population living on less than $1per day, or in extreme poverty. In Peru, they are 18.1%.
? Education: There are 90.3% of literates in Mexico and 87.7% in Peru. Lower quality education in Peru.
? Health: In Mexico, life expectancy is 75.1 years while it is 70 years in Peru. The share of health expenditure in public spending is the same share of GDP in both countries, about 2.6%. Social policy for several years has improved the health of the population.

B. Presidential election of April 9, 2006 in Peru: Humala is the winner of the first round with 30.6%, but fails against Alan Garcia in the 2nd round of voting which collects 55% of the vote.

C.In Mexico, presidential elections will be held on July 2, 2006. Andres Manuel Lopez Obrador (Party of Democratic Revolution) is the first candidate to appear on the left, his main opponent is Felipe Calderon Hinojosa (National Action Party).
The country risk in Mexico is 2 on a scale of 1 to 7,with 1 being low risk in the political, and 7 very high risk. In Peru it is 1.

Tags: Latin American politics, Peru infrastructure, Mexican economy

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