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Can we become a developed country in a generation? Yes, if we implement the following re- forms. Sustain macroeconomic stability. Sustain commercial and inancial openness to become the source of sustained economic growth. Complement openness with the following reforms: improvements in human capital via increases in the quality of education and health, increase in private investment via improvement in the investment climate and complementary infrastruc- ture, inancial deepening and labor market reform. A new source of growth is the promotion of a broad entrepreneurial middle class via the elimination of the distortions in the productive structure that have induced the increase of informality and the concentration of entrepreneur- ship in microenterprises and in a low productivity services sector. he elimination of distortions in the tax system, the social security system and the labor market will increase the demand for quality labor and the improvements in human capital will increase its supply and induce the emergence of a broad entrepreneurial middle class. Finally, for this entrepreneurial middle class to emerge, we have to reform the estate to eradicate corruption, reduce crime and to create a predictable and fair judicial system to defend property rights including compliance with com- mercial contracts. [ABSTRACT FROM AUTHOR]

Services account for 47% of global output and, as per several studies conducted, the liberalization of their trade brings more advantages than trade in goods. Despite of this fact, there has been little research on the subject, and the definition of services has remained controversial. Peru sticks to global trend, as services represent 65% of GDP and 75% of EAP. Moreover, the development of tertiary sector is essential to attain a hub position. This paper is aimed at identifying the potential trade in services with Asia Pacific, based on trade and liberalization indicators --this region accounts for nearly 18% of current world trade--. It considers the commercial behavior of Peru, as well as that of Chile and Colombia, which are regarded as competitors in their condition of "access platform" to the Andean sub region. It is concluded that there are many possibilities to intensify relations with Asia Pacific and policy recommendations that should be taken into account by the Peruvian foreign policy are provided. [ABSTRACT FROM AUTHOR]