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City Guide - Lima - Business | ||
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Business Business Profile: Lima is a microcosm of the country at large, reflecting the vast divide between Peru's different classes and the ways they make a living. The economic recovery, now faltering but originally set in motion by Alberto Fujimori's government in 1990, has only highlighted the gap between rich and poor. Most business in Lima is in the informal sector, which includes jobs such as shoe polishing, selling fruit or mending old radios, to mention a few. Ex-president Alberto Fujimori passed several economic measures in the early 1990s to liberate the market and revamp the 53-billion-Dollar economy. A series of multimillion-Dollar privatisations, topped by the two-billion-Dollar sale of the telephone network to Spain's Telefonica, created a boom in the financial markets. The new prosperity prompted massive investment in new buildings, particularly in San Isidro and Miraflores. It also sparked a rush of foreign interest led by US giants, such as Citibank and McDonalds, hoping to cash in on the boom. Profiting from its coastal location, Lima has been the centre for Peru's most lucrative industries. Exporters of guano (bird droppings turned into fertiliser) brought much wealth to the city, as did the sugar and cotton that was grown in rich estates along the coast. Oil production also contributed to the city's well-being. While these industries have dwindled, fishing continues to play a key role, particularly the production of fishmeal, which remains one of the country's top export earners. In terms of gross domestic product, fishing was the biggest growth area in 2000, followed by agriculture and electricity production. Tourism has recently become a highly important motor of the economy. In particular, the country is trying to promote the Amazon jungle as a centre for eco-tourism, in order to broaden Peru's appeal beyond just Machu Picchu and Lake Titicaca. Quality of life in Lima ranges from dire to extremely good. The average per capita annual wage for an ordinary worker is around US$1500 but often much less, while a successful banker could expect to make around US$30,000. Unemployment in the capital stands at 9.1%, somewhat above the national average of 7.7%. Business Etiquette: A distinctly old-fashioned sense of politesse lingers in the way Limeños do business. Nothing is rushed and the greeting ritual can seem almost as important as the actual meeting. Men shake hands, while women or men meeting other women often greet each other with a kiss. Breakfast meetings are common, but lunch remains an important way to entertain contacts. Latin Americans are careful about their clothes and overall appearance and appreciate it when visitors are equally well turned-out. Despite a reputation for Latin time-keeping, Limeños expect visitors to make appointments and to stick to them. Business cards are usually exchanged before a meeting begins. A business trip that spans several days is likely to include an invitation for drinks or dinner at the house of a colleague. Visitors should arrive with a small gift - a bottle of wine or flowers. As a mark of respect, Peruvians associates should be addressed as Usted (the polite form of tu) unless they indicate otherwise. Many Peruvian businesspeople speak English but a foreigner should make the effort to try and speak Spanish. Normal business hours are 0900-1700. |