Peru's Urban Crisis: Centralization and the Need for Territorial Development

Aldo G. Facho Dede, in an analysis by Veredes, examines the severe urban centralization in Peru, where Lima and Callao house one-third of the population and account for 50% of the country’s GDP and formal jobs, labeling this situation as unsustainable. Data from INEI reveals that since 2017, urban poverty has increased while rural poverty has decreased. The second-largest city, Arequipa, contributes under 5% to these metrics. Facho Dede supports the Ley de Ordenamiento Territorial and emphasizes the importance of investing in transport and communication infrastructure. He highlights the necessity for urban infrastructure planning and references E. Glaeser on urban density, cautioning that without decentralization, cities like Chiclayo and Piura may face difficulties, advocating for a network of intermediate cities to foster national development.