The Lost Route of Peruvian Gold and its implications for National Security

Abstract

n Peru, the mining sector has managed to improve the country's economy and society, contributing up to 10% of PIB and the main minerals are copper, zinc and gold, whose national exports represented more than 60% in 2019, being the gold the second most important mining product. The mining legal regulations that began in 1992, backed by the Peruvian Constitution, have managed to give the necessary impetus to turn this sector into the engine of the national economy; however, gold production in remote areas of the country still have governance problems that create opportunities for organized crime and illegal mining activity, facilitated by factors such as institutional weakness, corruption, poverty, an economy based on money in cash and high levels of informality that affect national security. Peru has complex and substantial challenges in the fight against the illegal gold trade and despite the time that has elapsed, it requires priority and effective attention, which benefits the inhabitants of those remote areas of the country.