In the article “Don’t Turn Your Back on Reforms: Can Democratic Market Economies
Take Root in Latin America?” that was published by CIPE, I mentioned that one of the biggest challenges for Latin America is to make people feel that they are part of the system. This is the case in Peru where according to recent opinion polls, 86 percent of Peruvians between 18 and 27 are either unhappy or extremely unhappy with democracy, and 80 percent are not interested in issues related to democracy.
Since about 30 percent of the Peruvian population is between the ages of 15 and 24 years old, this presents a significant challenge for the future of democratic institutions in the country. Peru is generally viewed as a successful economic model with some of the highest growth rates in the region in recent years, but the wealth and opportunity in Peru are centralized in Lima, and negative attitudes towards democracy are much more prevalent in rural areas outside Lima that have been left out of the economic success.
In response to this lack of confidence in democracy and the free market economy and a negative image of the private sector and entrepreneurship among the youth, especially from low-income families located in the countryside, the LíderAcción program was designed by the Peruvian NGO Instituto Invertir, the Peruvian University of Applied Sciences (UPC), and CIPE. This education program opens a window of opportunity to foster private enterprise, democracy, and leadership development in Peru.
The first LíderAcción education program awarded 200 scholarships to university students from rural areas in Peru to attend three separate three-day education sessions in Lima on leadership, entrepreneurship, communication, market economy, business plan development, and civic engagement.
The students from the first graduating class are all between 21 and 25 years of age and currently enrolled in a university. These students all come from cities and regions outside of the capital, and they are pursuing different careers including business, engineering, and law. More than 1,300 students initially applied to the program and went through a rigorous selection process that chose the best 200 students. Among the most important results of the first course of studies are the following:
- 200 students from rural Peru learned how to assume a leadership position in their communities and foster the democratic and economic development of Peru.
- 47 business plans were developed by the students with the advice of faculty of the UPC business school that proposed interesting development plans for their communities. The winners of the business plan competition were a group of students from the Amazon region that are planning to start an eco-tourism business in their home province.
- A LiderAcción alumni network has been created to help students assume a leadership role in their communities and to build a support network for implementing some of the business ideas that were developed during the education program.
- LiderAcción received the support from a number of Peruvian companies that have expressed interest in continuing to support the graduating students. These companies include Interbank, Backus, TEPSA, Gloria, Southern Copper and RPP News.
Hopefully we will see more initiatives like this in other countries in the region to show everyone that lasting development can only be achieved through a market economy and a democratic system. Cuba, Venezuela, and other countries in the region remind us of what will happen if we fail.
Published Date: November 21, 2008