Peru is set to work with the Korean International Cooperation Agency to help countries in the Arab world.

Peru’s Vice Minister of Foreign Affairs Jose Beraun said the Latin American country’s growing economy was now ready to help other nations after being one of the world’s greatest beneficiaries of KOICA support.

Beraun discussed potential projects with KOICA duting his trip here last week as well as preparing for Peruvian President Ollanta Humala’s visit to Korea, scheduled for around May 10.

“This visit was first of all to thank for the good cooperation, but also to present the fact that Peru, being already a medium-high income country, has also now a new responsibility to share its expertise with other countries,” he said.

Peru is now one of the fastest growing economies in the world ― expanding at about 6 percent in 2011 ― and is classed as an upper middle income country by the World Bank. 

“Peru is a country that has been very successful in recent years and can show important growth in its economy, but the Peruvian government sees this just as a tool to have the possibility to do something else,” Beraun added.

“That means the concern for social inclusion, concern for the wellbeing of the people and also to develop new areas such as science and technology, with which Korea can help with very much.”

Poverty in Peru has decreased by more than 19 percent since 2002, but inequality remains a challenge in the diverse but resource-rich South American nation. KOICA has assisted the country with building hospitals in the past and is continuing projects in the health sector there.

“Even though the numbers show that Peru has come to be this high-medium income country due to the geography and history we still have sectors of the population that are under poverty conditions and need help, assistance and cooperation,” he said.

In spite of these challenges, the Peruvian government is now seeking to work with Korea on behalf of third countries.

Following Peru’s recent growth, the two have also already cooperated on projects such as potato production in Algeria, and now wish to assist more Arab states.

“One of the pillars of the new president Humala is the openness toward the world. In that sense the Arab world has become one of the main objectives,” Beraun said.

“Peru has acquired expertise in several areas and we would like to share them with other countries. We are aware that we cannot do things alone therefore we would like KOICA to continue to work with us and we have received a very positive answer.”

He added that many countries in the region faced similar issues to areas of South America including challenges concerning irrigation, agriculture, other environmental issues, and health. He will tour Arab countries ahead of the Summit of South American-Arab Countries being held in Lima in September to gauge interest in such proposals.

“Also, Korea is very interested in the Arab countries, and they have good expertise to show,” he added.

The Korean Government struck a free trade deal with Peru in August last year. There is currently about $3 billion bilateral trade between the two countries, and Beraun predicted that trade between the two countries could triple as a result of the pact, saying there was room for growth in Peruvian agricultural and textile exports, including alpaca wool products.

A direct flight from Incheon to Lima is also being discussed with Korean airlines to improve connections between the countries.

Korean firms including SK, POSCO, Samsung and Hyundai are already doing business in the country, and Beraun discussed social responsibility of companies investing in Peru when he MOFAT’s First Vice Minister Ahn Ho-young in Seoul on March 8.

The third Korea-Peru High-level Policy Consultation saw the two discuss ways to work more closely on the economy, trade and investment, science and technology, as well as on the international stage. The two countries formed a comprehensive cooperative partnership in November 2008, but Beraun said they were looking to raise diplomacy to a higher level during his president’s visit in May. He also discussed Peru’s participation in the Expo 2012.

By Kirsty Taylor  (kirstyt@heraldcorp.com)