By Adolfo Figueroa
This learn analyses the functioning of the peasant financial system in Peru within the context of the current predominantly capitalist approach. The crucial topics are the commercial relationships of the peasantry to the remainder of the financial system of the rustic and the function of the peasant economic climate within the complete approach, including the adjustments that experience taken position in that function through the years. those subject matters are investigated via a examine intimately of a pattern of peasant groups within the most standard and backward zone of Peru, the southern sierra. The historic strategy has generated in Peru the most severe circumstances of inequality, rural poverty and cultural duality. Nowhere else does the idea of 'economic duality' appear extra appropriate. therefore an research of the case of Peru has methodological price for the knowledge of the peasant economic system all through Latin the United States, and the result of this survey have very important implications for the entire sector.
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Extra resources for Capitalist Development and the Peasant Economy in Peru
The communities taken as a whole derive income from each of the A, P and Z-activities and the temporary migration of labor. 2, which constitutes, in addition, an approach for determining the productive structure of the communities. 1 In Jacantaya, where the participation of A + P is the lowest, Z-activities and temporary migration are important components in the income structure. Within the Z-activities the important components are the fishing carried out in Lake Titicaca, together with commerce, particularly that of vegetables.
6). Thus, the peasant family allocates the greater part of its monetary income to the acquisition of consumer goods. The family's accumulation is very much reduced, as only a small part of its monetary budget is destined for investment. Net investment is even smaller, almost nil, as much of investment expenditure (in animals and tools) is replacement. The low expenditure in hiring labor is the result of our definition of peasant family: a family that does not hire labor. The proportion spent on modern inputs is also relatively small and clearly indicates the limited incorporation of modern inputs into the production process.
Finally, in Acobamba, 80% of agricultural exports consist of beans, and cattle and sheep are also sold. The community is located at the end of a road, and is therefore a commercial center; its market is a source of trading income for the members of the community. This list illustrates the diversity of export products both within and between communities. The one exception to this variation is cattle, which clearly constitutes a cash-product produced specifically for export in all the communities, but even then its relative importance varies, thus further underlining the differences between them which were emphasized above.