Contents -- Preface -- Acknowledgments -- Editor Biographies -- Acronyms -- Synthesis -- I. Rationale-Why This Book? -- II. The Opportunity for a Different Peru-The Main Messages -- III. An Economy That Creates Jobs -- IV. A New Social Contract -- V. A State to Be Proud of -- VI. Putting It All Together-An Agenda For Action -- Part I Thematic Chapters -- Chapter 1. The Power of Growth to Build a Prosperous Society -- I. Introduction -- II. Growth and Poverty Reduction-Over Time and Across Countries -- III. How to Achieve Sustained High Growth -- Bibliography -- Chapter 2. Governance: A Strategy for State Reform -- I. Introduction -- II. Toward a New Strategy for State Reform -- III. Diagnostic: Four Areas of State Reform -- IV. Policy Recommendations -- V. Conclusion -- Bibliography -- Annex -- Part II An Economy That Generates Jobs -- MACROECONOMIC STABILITY -- Chapter 3. Macroeconomic Framework for Sustainable Growth -- I. Background -- II. Sources of Economic Growth: An Accounting Framework -- III. Recent Macroeconomic Performance and Key Challenges -- IV. Key Policy Recommendations -- Bibliography -- Chapter 4. Toward a More Efficient Tax Policy -- I. Introduction -- II. Structure and Trends in the Tax System -- III. The Three Main Problems: Exemptions, Business Informality and Tax Evasion, and Constantly Changing Rules -- IV. Current Tax Policies and Some Policy Options -- V. Conclusions -- Bibliography -- Annex 1. Principal Changes in Tax Legislation over the Past 10 Years -- Annex 2. Estimated Fiscal Impact of the Principal Tax Law Changes, 1997-2000 -- Annex 3. Estimated Fiscal Impact of the Principal Tax Measures, 2001-05 -- Chapter 5. Fiscal Sustainability and Debt Management -- I. Background -- II. Debt Sustainability -- III. Debt Management and Debt Market Development, 2000-05 -- Annex I. International Comparisons: Tables and Graphs.

Annex II. Analytical Framework for Fiscal Sustainability -- Bibliography -- Chapter 6. Infrastructure Concessions: Moving Forward -- I. Main Infrastructure Sector Issues -- II. Infrastructure Needs and Impact on Poverty and Growth -- III. Moving Forward -- Bibliography -- GROWTH AND COMPETITIVENESS -- Chapter 7. Access to Financial Services: Setting the Basis for Sustainable and Inclusive Growth -- I. Current Status -- II. Future Challenges -- III. Key Policy Recommendations -- Bibliography -- Annex -- Chapter 8. Trade and Competitiveness in Peru -- I. Recent Performance and Challenges for Trade and Competitiveness -- II. Key Policy Recommendations -- Bibliography -- Chapter 9. Toward Agricultural Competitiveness and Rural Social Equity -- I. Background -- II. Conditions: Foundations for a Policy of Equitable Agricultural Development -- III. Options: Competitiveness and Social Equity -- Bibliography -- Chapter 10. Territorial Development -- I. Introduction -- II. The Context -- III. Progress in the Territorial Approach -- IV. Creation of the Mechanism to Support Territorial Development -- V. Some Steps for Implementation -- Bibliography -- INFRASTRUCTURE -- Chapter 11. Urban Transportation -- I. Transportation Problems in Lima -- II. Recent Initiatives -- III. Regional Reform Trends in the Sector -- IV. Policy Options and Recommendations -- V. Problems and Outlooks in Other Urban Centers of Peru -- Bibliography -- Chapter 12. Rural Infrastructure -- I. Key Problems -- II. Options for a Rural Infrastructure Policy and Recommendations -- Bibliography -- Chapter 13. Electricity Sector -- I. Introduction -- II. Main Issues and Recommendations -- Bibliography -- Chapter 14. Potable Water and Sanitation -- I. Introduction -- II. Principal Challenges for the Sector -- III. Recommendations -- Bibliography -- Chapter 15. Housing -- I. Background.

II. Recent Policies -- III. Recommendations -- Bibliography -- NATURAL RESOURCES -- Chapter 16. Natural Resources and Development -- I. Background -- II. Biological Diversity -- III. Conserving Biodiversity through Natural Protected Areas -- IV. Forestry -- V. Soil Degradation -- Bibliography -- Chapter 17. Oil and Gas Sector -- I. Background -- II. Upstream Investments and Oil Production -- III. Refining and Distribution of Petroleum Products -- IV. The Gas Industry -- V. Environmental and Social Impacts -- VI. Overall Recommendations -- Bibliography -- Chapter 18. Water Resources -- I. Overview -- II. Water Resources Challenges and Possible Solutions -- III. Recommendations -- Chapter 19. Increasing the Benefits from the Fisheries Sector through Policy Reform -- I. Introduction -- II. Background -- III. Specific Problems -- IV. The Future -- V. Policy Recommendations -- Annex -- References -- Chapter 20. Mining: The Challenge of Sustainability -- I. The Importance of Mining -- II. Challenges and Potential Impediments to Growth -- III. Mining Environmental Legacies -- Bibliography -- ENVIRONMENTAL POLICIES -- Chapter 21. Setting Environmental Priorities in Peru -- I. Background -- II. Setting Priorities from the Cost of Environmental Degradation -- III. Tackling Environmental Priorities -- IV. Institutional Analysis -- V. Policy Options -- Bibliography -- Chapter 22. Environmental Degradation and Environmental Health Policy in Peru -- I. Introduction -- II. Diagnosis of Factors and Recommendations -- III. Conclusions and Recommendations -- Bibliography -- Part III A New Social Contract -- GENERAL WELLBEING -- Chapter 23. Poverty, Inequality, and Inclusion -- I. Poverty and Inequality Update and Trends, 2001-04 -- II. Poverty Profile -- III. Poverty Dynamics -- IV. Policy Recommendations -- Bibliography -- Annex I. Statistical Tables.

Annex II. Measuring the Size and Living Standards of the Indigenous Population -- Chapter 24. Property Rights and Land Tenancy -- I. Property Rights and Land Ownership: Contribution to Economic and Social Development -- II. Background -- III. Current Property Rights and Land Tenancy Problems -- IV. Conclusions and Recommendations -- Bibliography -- Annex 1. Urban Property Rights Project -- Annex 2. Organization Chart of National and Local Institutions associated with Property Rights in Peru -- Annex 3. Institutions that Handle Information on Property Rights in Peru -- Chapter 25. Youth -- I. Introduction -- II. The Situation of Youth -- III. Conclusions -- Bibliography -- Annex -- SOCIAL SECTORS -- Chapter 26. The Power of Growth to Build a Prosperous Society -- I. The Current Situation -- II. The Role of Spending -- III. Two Special Problems: Desertion and Bilingual Education -- IV. Many Peruvians Know What to Do, But the System Still Doesn't -- V. Decentralization's Challenges and Opportunities -- VI. Policy Recommendations -- VII. Short-Term Priorities -- VIII. Summary of Priorities -- Bibliography -- Chapter 27. Tertiary Education -- I. Introduction -- II. Expansion and Diversification -- III. Financing of Tertiary Education -- IV. Equitable Access to Tertiary Education -- V. Quality and Relevance -- VI. Efficiency -- VII. Linkages and Articulation -- VIII. University Research -- IX. Recommendations -- Bibliography -- Chapter 28. Health Outcomes and Public Health Sector Performance -- I. Introduction -- II. Background and Context -- III. Innovations and Challenges in the Management and Financing of Health Care -- IV. Recommendations -- Bibliography -- Chapter 29. The Social Safety Net -- I. Sector Background: The Social Safety Net Sector -- II. Key Issues in the Social Safety Net Sector.

III. Future Prospects: Constraints and Opportunities in Reforming the SSN Sector -- IV. Policy Recommendations -- Bibliography -- Chapter 30. Human Resources in Public Health and Education in Peru -- I. Low-Level Equilibrium -- II. Antipoor Bias -- III. Conclusions and Policy Recommendations -- Bibliography -- Chapter 31. The Pension System -- I. Background, Context, Diagnosis -- II. The Future -- III. Policies -- Bibliography -- Part IV A State to Be Proud of -- MODERNIZATION OF THE STATE -- Chapter 32. Decentralization -- I. Background -- II. Challenges -- III. Policy Options -- Bibliography -- Chapter 33. E-Government -- I. Trends and the Current Situation -- II. Peru in the International Context -- III. The Risks of Nonimplementation -- IV. Policy Recommendations -- Bibliography -- Chapter 34. Justice -- I. Introduction -- II. Composition of the Justice Sector -- III. Barriers in Access to Justice: Diagnostics and Issues for the Sector -- IV. Policy Recommendations -- Bibliography -- ACCESS TO WELLBEING -- Chapter 35. Crime and Violence -- I. Diagnostic -- II. Players and Policies -- III. Policy Recommendations -- Bibliography -- Chapter 36. Voice and Participation -- I. Introduction -- II. Communications Channels and Participation -- III. Functionality of Voice Mechanisms -- IV. A Look Towards the Future: Trends and Recommendations -- Bibliography.