In 1985, Peru was very poor with almost the lowest level of economic freedom in the world. In the early 1990s, former President Alberto Fujimori began major economic reforms. These reforms have continued through a series of administrations, including that of the current president, Ollanta Humala.

As a result of the economic liberalization and increase in economic freedom, Peru enjoyed an average rate of real economic growth of about 5.5 percent from 1994 to 2013. At that rate of growth, per capita income doubles about every 14 years. Peru did not begin its economic reforms until almost a decade after its neighbor to the south, Chile, began its reforms and resulting economic takeoff. Starting late and from a lower base, Peruvians only enjoy about half the real income per person of Chileans.

Economic growth slowed a bit last year and will slow further this year owing to the decline in the price of copper, gold, silver and other commodities that are its major export industries. However, if Peru can revive the growth rate of its economy back to 5 percent or more by further economic diversification and increasing economic freedom, in a decade and a half it could enjoy the per capita incomes that Chileans experience today, and it would be essentially a “developed economy.”

Peru is still plagued by too much corruption, a semi-dysfunctional legal system and many regulatory inefficiencies. On the positive side, Peru has opened up its markets and concluded many free-trade agreements, including one with the United States, which has given its businesses access to much of the global market. In Peru, government spending and debt are less than 20 percent of gross domestic product, which is a definite plus.

Many poor countries pay little attention to their historical culture. As countries increase their real per-capital incomes, they usually stop destroying significant historical ruins (even though they are in the way of population growth and development) and start preserving them. For example, in Lima, a new highway project was slated to split in two a large ancient Incan palace and burial complex with many artifacts that had been only partially explored. But after protests, it was decided to build a series of automobile tunnels under the complex, which is due to be completed in June. Now Lima will have both improved transportation and a more accessible and preserved historical site.

Given the progress that Peru has made in recent decades on many fronts, there is good reason to be optimistic about its future.