The Challenge: Peru is the 6th most economically productive, extralegal economy in the world. Annually, $118 billion dollars in product and money is traded and remitted, both domestically and abroad. Migration trends play a significant role in the governance and growth of the informal market network structure. Historically and today, Peruvian, Chilean, and Bolivian networks have built and continue to grow trading networks rooted in millennia of relationships. These networks are characterized as ‘smuggler’ networks, despite their historical existence, licit trade, and overwhelming market dominance in the national food and textile industry. Quechua and Aymara women are the main network actors. The informal market supply chain is strongest in the central and southern region of Peru. Thirty years of strife in the countryside sustained a population shift toward urban centers. Mass migration saw an uptick in the 80s and by 2010, the number of internal migrants reached 7 million persons. The population living in Lima’s metropolitan area rose over nine-fold1940 to 9 million today. Due to the recent COVID pandemic, these trends are rapidly changing.  A deeper understanding of the these movements will have a critical impact on Peru’s economic recovery.

Interventions Tested:
Thought-leadership: Master’s thesis, A Reassessment of The Drivers of Economic Informality, Opportunities in Mobile Technology,with tailored recommendations provided to various stakeholders.  In 2018, I was asked by the Association of Gamarra, the largest textile hub in Peru, to lead a digital skills building workshop for 100 small and medium producers.  While there was strong will from the participants there was never funding associated and most of the gains were made sporadically based on producer capability and personal access to resources (2013-2018).

Engagement: Heavy engagement with micro-financial institutions, however, the modern approach of the intervention was too early for the market (2013).