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Opinion | 4 October, 2007 [ 13:30 ]

Lima, Peru's People Choose Spain as the Favorite Country to Immigrate to


(LIP-ir) -- According to a survey done by the University of Catolica Public Opinion Institute, polls showed that Spain was the country where the majority of Peruvians planning to immigrate to another country would like to go.

The survey done by the Public Opinion Institute, from August 31 to September 1, revealed that the second favorite destination for those wishing to immigrate to another country was the United States. The reasons for immigrating ranged from working to studying.

The next most popular country was Italy, followed by Argentina. Chile and Canada were the countries ranked in last place when Peruvians considered where to immigrate to work or study.

According to survey results, 61 percent of the people polled stated they would travel to a foreign country to look for a better job and a better income. 22 percent stated they would immigrate to a foreign country to study, while 1 percent stated they would travel to have a family with a native of the foreign country.

In addition, it was reported that 41 percent of the people surveyed stated that they had a family member in a foreign country which sent them a remittance. The majority of them (56 percent) stated they received a remittance once a month.

Peru's Catolica University reported that the survey was done in 27 districts throughout Lima, Peru.

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Opinion | 20 April, 2007 [ 15:30 ]

More than half of Peru's government entities use pirated software


(By Joe Lara)

As Intellectual Property Week is set to begin, I thought it would be appropriate to shed the light on a problem associated with the issue and Peru's government.

While the problem of product piracy is blamed on a number of reasons, no reason on earth could justify why 59% of Peruvian government entities use pirated software for their day-to-day operations.

According to the International Intellectual Property Alliance (IIPA), losses of approximately US$93.3 million were attributed to Peru's piracy problems.

Despite the Peruvian government's decreasing dependency on pirated software, the IIPA says it still is one of the country's biggest violators of piracy laws.

How hypocritical is it when government officials conduct sting operations which target formal and informal vendors in places such as Polvos Azules, Polvos Rosados, Las Malvinas, El Hueco, and Mesa Redonda while Peruvian government offices use bootleg products to run their operations.

Again, as is typical in Peru, an example is always made out of the 'little guy.'

While I agree some type of action needs to be done to deter vendors and producers who supply illegal and pirated products, a much stronger message could be sent by cleaning up the government's own house.

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Opinion | 24 October, 2006 [ 18:07 ]

Doe Run response to our "La Oroya" article


(LIP-wb) -- After we published our article "World's worst polluted places - La Oroya is among them" on October 19, 2006, we received a comment from Barb Shepard, Vice President, Human Resources and Community Relations of the the Doe Run Company.

We at "LivinginPeru" are always anxious to show both sides of the coin, so we thought we should pass this information along in a separate article:

Dear Editor:

Thank you for covering news about The Doe Run Company’s subsidiary operations abroad. We appreciate your interest in learning more and we welcome the opportunity to provide additional, yet often overlooked, information about our facility in La Oroya, Peru. We hope the following will help in clarifying some of the claims in the Blacksmith Institute’s report. In addition, we’ve added you to our regular distribution list for company news.

The Doe Run Company has always been committed to the safety and welfare of our employees, their families, and the local community. Since purchasing the La Oroya facility in 1997, we have made significant progress in improving the quality of life for the people of La Oroya. To date:
  • We have already reduced lead emissions by almost a third since our arrival. By the end of 2006, we expect to bring lead emissions to within Peruvian environmental guidelines.
  • More than $100 million has been invested to correct the decades of unchecked pollution Doe Run Peru inherited from the Peruvian government and prior owners.
  • Since 1997, we have seen worker blood lead levels decrease by 30 percent, a testament to safety practices, facility upgrades and hygiene programs.
  • More than $500,000 in financial and additional support has been provided annually for measures to more effectively control blood lead levels such as medical facilities, blood testing materials, and in-home education for families on diet, nutrition, and hygiene – all of which are important in reducing blood lead levels.

Doe Run Peru received a three-year extension of the PAMA (the operating agreement set forth by the Peruvian government to upgrade the facility) for one of the nine PAMA projects in La Oroya--we are on track to complete the other eight on time. The remaining project, a sulfuric acid plant, is already underway. This reprioritization of projects was done so that Doe Run Peru could better address the more pressing need, lead emissions.

In addition to ensuring the health and safety of the community, Doe Run Peru is working with government officials, national and international organizations, and universities to build a strong economic and social foundation for La Oroya. We have made significant contributions to community programs, including:
- vocational training for women
- the refurbishment of local schools
- the reforestation of public spaces; and
- the establishment of public parks, bathrooms, and laundry facilities.

Currently, Doe Run Peru is working with the National University of the Center of Peru to support sustainable economic development programs in 13 communities in the Yauli-La Oroya Province, and with the Universidad del Pacifico and the Wharton School to improve the productivity of local silver artisans. The company intends to stay in Peru and to continue building a business that gives important support to a vibrant community.

The Doe Run Company remains committed to meeting our environmental obligations and minimizing the impact of our operations; however, we recognize it requires the efforts of others to resolve all of the issues in the community. Doe Run Peru will continue to work with the government to address the people’s needs and welcomes the participation of those interested in bringing constructive solutions to the people of La Oroya.

Again, we thank you for your interest in Doe Run Peru as we continue our progress there.

Sincerely,


Barb Shepard
Vice President, Human Resources and Community Relations
The Doe Run Company

P.S. We invite you to visit our Viewpoints page at www.doerun.com/news/viewpoints.aspx,
which contains some outside perspectives on the progress that has been made.

- related articles -

- World's worst polluted places - La Oroya is among them (LIP, Oct. 15, 2006)

-



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Opinion | 5 October, 2006 [ 22:06 ]

Welcome to Washington, Mr. Garcia


(official press release by the Council on Hemispheric Affairs - link -)

Welcome to Washington, Mr. Peruvian President:
Alan García Perez’s Regional Foreign Policy


* García is out to prove that this time he will be able to get along with Washington and Wall Street, while helping to spearhead the Bush administration’s anti-Chávez strategy

On October 10, newly inaugurated President Alan García Pérez will arrive in Washington where he will be warmly greeted by a grateful White House and State Department. For the Bush administration, which is very much on the defensive in Latin America and whose reputation has hit rock-bottom in much of the region, García – once held in contempt by the Reagan administration for refusing to pay Peru’s international debt his first term in office – will now be a welcomed figure.

Peruvians voted former president García, who made his presidential debut in 1985, back into office earlier this year. This event was of international interest as opinion polls showed that there was a strong possibility that retired military officer and former-coup-leader-turned-leftist-politician, Ollanta Humala, could win. García’s triumph was seen by the State Department as helping to construct a “political wall” preventing Venezuelan President Hugo Chávez’s left-leaning “Pink Tide” from spreading throughout the continent. Many Peruvians, however, are anxious to see what policies García and his American Popular Revolutionary Alliance (APRA) will carry out during the next five years. This will be his second attempt to combat the economic instability and overall social unrest that marked his disastrous first term. Attracting foreign investment, increasing exports and making new allies around the globe are scheduled to be integral parts of the new president’s foreign policy.

Foreign Policy 1985-1990
In 1985, at 36 years of age, García became the youngest civilian president in Peru’s history. It was also the first time that APRA took control of the country. García assumed the presidency at a time when the nation was in a particularly dire state: the economy was in shambles and the outgoing president, Fernando Belaunde Terry (1965-68 & 1980-1985) had ceased paying off the country’s external debt. In addition, two rebel movements, the Maoist Shining Path and the Marxist Túpac Amaru Revolutionary Movement, had gained control of most of the country’s highlands and jungle zones. Additionally, the country was still recuperating from the short-lived 1981 border conflict (essentially a non-declared war) with Ecuador. Meanwhile, in the international context of the Cold War, third-world nations such as Peru had to carefully choose allegiances.

It was during this period of tumult that García tried to take a leadership role in Latin America. He went to the United Nations to address the General Assembly, explaining his plan to deal with world poverty. He argued that heavily indebted countries should only have to pay 10 percent of the income deriving from export earnings. He was initially applauded for this bold agenda, but in 1985, Peru needed to pay back more in international debt than the 10 percent was able to allow. This shortcoming destroyed Peru’s credit rating, prohibiting it from attracting additional foreign loans or new investments. The country’s economic condition was further aggravated by hyperinflation that García ignited when he “statized” banks later in his term. These events drove the International Monetary Fund and other lending institutions to declare the country ineligible for credit. Ultimately, García’s foreign policy proved ineffective in facilitating third world debt relief.

García Takes on the Left
With the weakening of ties to the Soviet Union, which were developed during Peru’s earlier military administrations, García prioritized foreign policy objectives in an effort to gain new friends abroad. He began attending international events such as two summits of the Non-Aligned Movement (NAM) to bring the country into diplomatic spotlight. He also hosted the Socialist International XVII Congress in Lima in 1986, in which he upgraded APRA’s ties to that social democratic body. Despite his debt-thesis fiasco, García persevered in his efforts to establish Peru as a prominent member of the Latin American community. In 1985, Peru joined Argentina, Brazil and Uruguay in the 1983 Contadora group, which sought an end to the Central American wars of that period. In December 1989, Peru withdrew its ambassador from Washington in protest to the first Bush administration’s invasion of Panama, aimed at overthrowing Manuel Noriega. García then took matters a step further and ordered the Panamanian flag to be hoisted in Peru’s presidential palace, as Noriega was being overthrown. In contrast to his first term, García now employs a shrewder foreign policy, and avoids alienating any future allies.

The Usual Suspects: García’s Potential Allies
Shortly after García’s 2006 electoral victory, but before he took office, he traveled extensively to neighboring nations. Colombian President Alvaro Uribe expressed his congratulations by sending his presidential plane to transport the new president-elect to Bogotá. García also visited Ecuador and Brazil. Regarding Lima-Brasilia relations, García supports the idea of constructing an inter-oceanic road tying Lima, via the southern Andean regions, to São Paulo to expedite the transport of agricultural products. Recently, the Brazilian oil company Petrobras and the Peruvian state oil company Petroperu signed an agreement. The agreement exemplifies Petrobras’ commitment to modernize Petroperu’s oil facilities and signifies its desire for a lasting relationship. Furthermore, García could certainly use his worldwide Socialist International (SI) contacts in order to boost the number of Peru’s allies abroad, particularly in the European Union. In theory, he could even facilitate the renewal of SI influence in Latin America.

The Unholy Friendship: Chile and Peru
One of García’s most surprising foreign policy decisions is his seeking rapprochement with Chile. The countries’ historical animosity dates back to the 1879 War of the Pacific, in which Chile, with considerable assistance from the U.K., defeated Peru and Bolivia (transforming the latter into a landlocked nation). Since then, each country has regarded the other as a security threat, and military purchases are usually seen as an arms race provoking renewed tensions.
In spite of this antagonistic legacy, García and Chilean President Michelle Bachelet have become friends. Bachelet was the only visiting leader who remained in Peru an additional day after García’s inauguration on July 28, accompanying the new president to a number of public events. García also spearheaded the movement to bring Chile back into the Andean Pact (Chile was a founding member of the Pact in 1969, but left in 1976), and both nations are now discussing a free trade agreement. This is not to say that historical tensions and an ancient border dispute have completely dissipated. The emerging relations between García and Bachelet merely suggest that he has been wise enough to avoid discussing many sensitive issues for the time being.

Why Washington and García Will Get Along
In spite of past tensions, it is likely that Washington and Lima will have a cordial relationship. U.S. policymakers were pleased with García’s victory over the populist indigenous leader, Ollanta Humala. For his part, the Peruvian president recognizes the importance of strong economic ties with the U.S. Currently, a Free Trade Agreement (FTA) between Lima and Washington’s waiting to be ratified by the U.S. Congress. The Peruvian media has reported that the U.S. Congress will most likely wait until after the November mid-term elections before dealing with such a contentious issue as the free trade agreement, and even then its ratification is not certain. Furthermore, Vietnam will be prioritized on the agenda as President Bush would like such an economic agreement signed before he undertakes his December Asian tour. Regardless of this back-burner status, one topic that the leaders are sure to agree on during President García’s visit is the hotly contested Latin American seat in the UN Security Council (UNSC).

Lima-Caracas Relations
García’s estrangement from Chávez has produced tension, providing proof that Lima will not likely back Caracas’ bid for a UNSC seat. During the recent Peruvian elections, Chávez was an unambiguous supporter of Ollanta, which led García to baptize Chávez as Ollanta’s “godfather.” In turn, Chávez described the APRA candidate as “Washington’s lapdog.” Tensions have continued to this day, with the Peruvian media recently reporting that Chávez has not forgotten García’s tart comments. “¿Olvidar yo? No. Si allá no hay dignidad aquí sí hay dignidad” (“Me, forget [what happened]? No. If there is no dignity over there [in Peru], it means there is dignity here [in Venezuela].” Chávez clarified that Peru-Venezuela relations would only be commercial, not political. As for the UNSC seat, Peru’s foreign affairs minister, Jose Antonio García Belaunde, recently informed La Republica that: “no hemos decidido a quien apoyar aun” (we have not decided who to support yet). This is not to say that Lima will necessarily back Guatemala (the U.S. choice for the Council seat), but possibly some third country. Peru might also choose to abstain from voting in order to keep a neutral stance.

Overall, García’s stance is seen by the State Department as part of a “Pacific Bloc” that could potentially counter Chávez’s “Pink Tide” movement, with Chile’s Bachelet and Colombia’s Uribe also standing between Chávez and the Pacific Ocean. Venezuela has also been at odds with Chile after Victor Delgado, the Venezuelan ambassador in Santiago, denounced the Christian Democratic Party (part of Bachelet’s ruling coalition) for its position against Venezuela’s bid for the UNSC seat. The net result was that Chávez, in his attempt to attack his adversaries, brought traditional foes Peru and Chile closer together. One challenge to this “Pacific Bloc” could arise from the upcoming Ecuadorian presidential elections, particularly if front runner and professedly pro-Chávez Rafael Correa wins the race.

An Optimistic Outlook for Peruvian Foreign Policy
Alan García’s second term as Peru’s president commenced in a far more tranquil time for him and the country than in 1985. Two decades ago, he was still a novice in politics, having to steer the country through the final years of the Cold War, as well as rule a nation plagued by two strong rebel movements. Today, he is a political veteran, navigating contentious issues and establishing strategic relationships abroad while presiding over a more peaceful domestic setting. García, and Peruvians, hope that this more pragmatic outlook will be much more conducive to alleviating poverty in today’s Peru.

This analysis was prepared by COHA Research Staff
October 5th, 2006


The Council on Hemispheric Affairs, founded in 1975, is an independent, non-profit, non-partisan, tax-exempt research and information organization. It has been described on the Senate floor as being “one of the nation’s most respected bodies of scholars and policy makers.” For more information, please see our web page at www.coha.org; or contact our Washington offices by phone (202) 223-4975, fax (202) 223-4979, or email coha@coha.org.



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Opinion | 8 September, 2006 [ 11:26 ]

Peru's Alan García: The sequel


Gabriela Perdomo at "Angus Reid" gives us an in-depth political analysis about Peruvian President Alan Garcia's first six weeks of his second tem in office, reasons for his rising popularity and the pressure he is facing.

The president is under great pressure to deliver to those who elected him despite a disastrous first term.

Gabriela Perdomo - The options in Peru’s presidential election earlier this year were hardly ideal. After an exhausting and negative campaign, voters were left with two candidates for the run-off. One was Ollanta Humala, a radical nationalist and former military man of indigenous descent who ran an aggressive campaign, claiming to be the saviour of the poor. The other was Alan García, an infamous former president who left the country in bankruptcy after his mandate between 1985 and 1990. 

read more .....


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Opinion | 6 September, 2006 [ 10:11 ]

The corrupt judge - something smells fishy


(by Wolfy Becker)

A "provisional" Peruvian Supreme Court Justice is arrested for allegedly accepting a S/. 2,000 Soles bribe (today the prosecutor's office said it was 600 Soles). I have followed this latest case of corruption in Peru very closely and I am appalled and disgusted but hardly surprised, just like everyone else. However, there are many questions that linger in my mind. Perhaps our readers can help me out here to fully understand this case, its impact on other cases (Humala!), and Peruvian law in general :

1) Why wasn't the ex-police officer Willy Ipanaqué Lescano, the man who offered the bribe not arrested? Did he not commit a crime as well? Does the national police only throw its hook to the "big fish"? It almost seems that Ipanaqué has now become some sort of hero and wants special protection.

2) How did law enforcement authorities know about the hand-off? Obviously they must have been tipped off. By whom? Ipanaqué himself? If this is the case, is this his chosen way to make his case for reinstatement into the police force?

3) Why would a (provisional) Supreme Court Justice, who receives a salary of S/. 26,100 monthly, - an amount that almost doubles the current President's self-imposed salary -, put his whole carreer and reputation on the line for as little as S/. 600 or S/. 2,000 ?

4) How can a Supreme Court Justice be dismissed one day after the alleged crime? Doesn't Peru's Justice System work under the premise "innocent until proven guilty in a court of law"?

5) How come the judge was arrested and is still in police custody for a presumed crime involving a couple of hundred bucks while Ollanta Humala, indicted for human rights violations, double murder and battery, holds a press conference in Peru's Congress?

6) If the judge really accepted such a rather miniscule bribe, what impact does that have on cases, trials and rulings he presided over? Why doesn't anyone know which judicial cases he was involved in? Why does it seem justice officials are downplaying his judicial influence?

6) Does anyone have any faith in Peru's Justice system? Under these conditions, do you think Humala will receive a fair trial? If extradited, do you think Fujimori will receive a fair trial?

Feel free to make additions if you feel like it. Answers and opinions are also appreciated, of course.

(PS: I am not trying to defend the judge, nor Humala, nor Fujimori. All I am trying to do is to find some answers)


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Opinion | 28 July, 2006 [ 11:33 ]

Alan Garcia’s second coming


(by John Crabtree, OpenDemocracy.com)

Alan Garcia returns to the presidency of Peru as a far less radical figure than in the 1980s, but the political and institutional challenges facing him are just as great, reports John Crabtree.

Alan García Perez – someone who most Peruvians never imagined would regain the sash of office, after his first period as head of state (1985-90) ended in hyperinflation and political crisis – was sworn in as president on 28 July 2006, among all the pomp and ceremony of his country's independence day. However, he seems a very different Alan García to the figure sworn in twenty-one years ago, when he used his inaugural speech as a platform to announce Peru's unilateral moratorium on debt-service payments. Today, he pledges to follow orthodox economic policies, and is keen to avoid the mistakes that led to his leaving office in 1990 in disgrace, amid a shambolic, unsustainable economy.

The new cabinet

García's appointment of a sixteen-member cabinet, announced on 27 July, underscores this point in three ways. First, he selected the conservative banker Luis Carranza as minister of economy and finance. Carranza returns to Peru from Spain, where he held a senior position at the Banco Bilbao Vizcaya Argentaria (BBVA). Before this, he was one of the key confidants of Pedro Pablo Kuczynski, the prime minister (and former finance minister) of outgoing president, Alejandro Toledo. Kuzcynski's imprimatur on Peru's economic policy during 2001-06 has been seen by the international financial community as a guarantee of fiscal and monetary rectitude.

It is precisely García's former heterodoxy (which included the ill-fated attempt to nationalise Peru's private banks in 1987) that makes him determined to take every step to convince the outside world that he has learned the errors of his former ways. In practical terms, he and Carranza will follow economic policies that are close to those of the Toledo administration. As always in Peru, however, there will be tension between the economy ministry and those in government who would like to see more public spending. In the short term, at least, the new economy minister will seek to maintain a tight grip on the public purse.

Second, García is determined to show that he is not going to pack his government with party loyalists as he did in his first term, when these became widely viewed as the beneficiaries of institutionalised corruption. Card-carrying members of the centre-left Alianza Popular Revolucionaria Americana (Apra) are in a distinct minority in the new cabinet. García has gone out of his way to bring in independent technocrats. He has even reserved a seat round the cabinet table for the far-right Opus Dei militant, Rafael Rey, who becomes minister with responsibility for production. Apra militants privately feel rebuffed by García's initial choice of ministers, though at least prime minister Jorge Del Castillo is one of their number.

A third criterion that has prevailed in the selection of the new cabinet is the number of women represented. García has strained to comply with a campaign promise – perhaps reflecting a concern not to be outdone in this respect by Chile's new president Michelle Bachelet – to have a fifty-fifty split between men and women ministers. But to honour this commitment as far as possible (in the event only six women are included in the cabinet, including Mercedes Araoz as trade minister and Pilar Mazzetti as interior minister), there had to be last-minute changes which left one or two highly eligible males out in the cold.

The party landscape

The composition of García's government also reflects new political realities arising from the results of the 2006 presidential contest. This saw the leftwing nationalist Ollanta Humala win more votes (just over 30% of ballots cast) in the first round on 9 April, with García only beating third-placed Lourdes Flores of the right-of-centre Unidad Nacional (UN) by the narrowest of margins. In order to win in the second round on 6 June, García had to appeal to conservative voters who had previously supported Flores. This meant that Apra found itself pushed to the right.

Humala's party, Unión Por el Perú-Partido Nacionalista Peruano (UPP-PNP), is also the largest (with forty-five representatives) in the new 120-seat congress sworn in for a five-year term on 25 July; Apra (with thirty-six representatives) is the second-largest grouping. García could expect little support from Humala's deputies who have no sympathy with neo-liberal economics and want a radical shift in Peru's foreign and social policies. He therefore had little alternative but to seek collaboration where he could find it, on the right, and Unidad Nacional was the first port of call.

Although not prepared to enter any formal coalition with Apra, UN has made clear that it will support the government's legislative agenda for the time being, so long as it roughly corresponds to policies that the right finds acceptable. Since Apra and the Partido Popular Cristiano (PPC), the senior partner in UN, are both reasonably disciplined parties, this should mean that the government can rely on majority support in the single-chamber congress. And even if it suffers defections, there are others from smaller parties that can probably be relied upon for help when needed. Moreover, Humala's opposition UPP-PNP is proving extremely flaky, with early signs of internal schism.

The foreign-policy picture

If in its economic policies, Peru under García will seek to play by the established rules of the "Washington consensus", in its foreign policy it is also likely to fall in closely with the United States in contraposition to countries like Venezuela and Bolivia that reject Washington's tutelage in Latin America.

An early sign here is García's apparent willingness to go along with the free-trade agreement (FTA) with the United States, negotiated by Toledo and signed in December 2005. During the presidential campaign, he argued the need for changes in the text agreed by Toledo, but these doubts seem to have dissipated in the face of Realpolitik. Although ratified by the outgoing Peruvian congress, it now seems unlikely that the FTA will be considered by the United States congress before the US's mid-term elections in November 2006.

The pattern of García's pre-inauguration travels – which have included trips to Brasilia, Santiago and Bogotá – suggest the flavour of likely alliances within Latin America. Peru will seek to align itself with governments that are moderate in their economic policies and prepared to do business with Washington. García has been particularly effusive towards Bachelet, promising détente in the prickly relationship between Peru and Chile in recent years. The Peruvian military regards the military balance as being stacked in Chile's favour and regards rapprochement with suspicion; perhaps it is partly for this reason that García has chosen a retired general as his first vice-president.

The acrimonious war of words between Venezuela and Peru in recent months, heightened by Venezuelan President Hugo Chávez's open support for Humala in the Peruvian presidential race, is set to diminish. However, García is not inclined to cultivate friendship in Caracas if it means alienating Washington, and Chávez was conspicuously absent from the heads of state attending García's inauguration.

In the case of Bolivia, the Peruvian position may be more accommodating. But, as in the past, the bottom line may prove to be Peruvian reluctance to go along with any territorial arrangement along its southern frontier that affords Bolivia some sort of access to the Pacific.

The social agenda

Peru has been among Latin America's fastest growing economies in recent years, but a major challenge for the García government will be whether it has any more success than its predecessor in extending the benefits of this growth to the majority of the population officially classified as "poor".

One of the main reasons for deep public disillusionment with the Toledo administration, which began with high hopes in 2001, was its abject failure to honour its campaign slogan of más trabajo (more work). More than half of the workforce continues to labour in the so-called "informal sector" where remuneration is low, employment unstable and where social benefits (such as pensions) are nil.

Alan García has promised to maintain Toledo's flagship social programme, called Juntos. Like Bolsa Familiar in Brazil and Oportunidades in Mexico, this is a scheme for making direct payments to poor households where families accept the conditions attached by sending their children to school and having the stipulated health injections. The main problem here is that the programme (if implemented throughout the country) is fiscally expensive and is dependent on the highly deficient educational and health provision offered by the relevant ministries. Many families complain, for example, that there is little point in sending their children to school when there are not adequate numbers of qualified teachers and when children can earn money for the family by going to work.

The problem of poverty in Peru is most acute in the Andean highlands, especially in rural areas. Here García has promised to introduce a scheme known as the sierra exportadora whereby peasant farmers are encouraged to produce for niche export markets. For instance, there has been some success in exporting broccoli from the highland valleys, echoing Peru's previous success as an exporter of asparagus. However, it is most unlikely that this will benefit more than a tiny fraction of Peru's highland farmers, while many producing for the domestic urban market face the prospect of disabling competition from subsidised United States producers due to the FTA.

The scale of discontent among low-income households, especially in rural areas, was made clear by a United Nations Development Programme (UNDP) report released in March 2006 which showed a clear rejection of the way in which democratic institutions work in Peru. The elections themselves showed voters dividing along clear lines of class and income, with lower-income Peruvians (especially those of indigenous origin) voting massively for Humala. If García wants to avoid growing social tension and possibly political conflict, he will need to show that he can do something concrete for the millions of poor Peruvians who expressed confidence not in him but in Humala.

The next elections

Even before Peru's new president and congress were installed, politicians' minds were turning to the next electoral hurdle: municipal and regional elections scheduled for November. This will be the first major pointer as to whether Alan García can hold on to his newfound popularity or whether Humala and his friends will take advantage of a mood of disillusion and discontent at the sub-national level.

The last time regional elections were held, Apra won in nearly half of Peru's twenty-five departments. This time, especially in light of their relegation to second place in the congressional elections, the party will be on the defensive. A weak result in the November elections could prove a major psychological blow for the country's new government and its ruling party. Alan García has work to do.

opendemocracy.net This article originally appeared on openDemocracy.net under a Creative Commons licence. To view the original article, please click here.

John Crabtree is a research associate at Oxford University’s Centre for Latin American Studies. He is the author of Peru under Garcia: Opportunity Lost (Macmillan, 1992), Fujimori’s Peru (ILAS, 1998), and Patterns of Protest: Politics and Social Movements in Bolivia (Latin America Bureau, 2005). He is the editor of Making Institutions Work in Peru: Democracy, Development and Inequality since 1980 (Institute for the Study of the Americas, London University, April 2006).



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Opinion | 14 July, 2006 [ 07:43 ]

César Hildebrandt: 'Elefantastic" media is worrysome


Cesar Hildebrandt, Peruvian journalist In an interview with Radio RPP, Peruvian TV moderator César Hildebrandt expressed his concerns about the journalistic quality presented in Peru's mass media.
“The 'elefantastic' style of our press worries me" said the journalist when commenting that in a country filled with omissions and lacking proper authorities, like Peru, the mass media is in charge to dictate the agenda, to decide what is bad or good and to demonize or to idolize.

In his opinion this will change when the media companies' decision-makers improve their “quality”.

In Peru, he added, investigative journalism is simply suspicions turned into certainties, indications turned into conclusiveness, speculations are slanted with ideology and inner demons, converted into a journalistic report or article and presented to the viewer or reader who generally “swallows it”.

“We are here to inform about the truth, until it becomes discomforting”, he remembered. "A journalistic investigation requires time, money and specialized people. An investigative report awarded with the "Pulitzer" takes at least eight months. But in our country media companies demand that investigations are completed in four days.

When being asked about his impression of president-elect Alan Garcia, he responded that Garcia is his own worst enemy, the same problem that Venezuelan president Hugo Chavez has, who thinks that he is the reincarnation of liberator Jose Bolivar, but with oil.

Hildebrandt thinks that Garcia Perez wanted to make history and create tremendous things during his first five years in office, but the possibility that unconsciously he may screw up again.

“I think that he has changed. I believe that the criticism and blows, the experience, his exile, the shame to have governed so badly, have changed him”, he expressed.

In the case of nationalistic leader Ollanta Humala, he considered that he discredited the opposition with his violence, the stupidity of his family, the anarchistic character of his proposals and with his rather darksome spirit of change.

As for Alejandro Toledo, he believes he is one of those presidents whose legacy will soon be forgotten.

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Opinion | 13 July, 2006 [ 09:04 ]

Congress Should Advance U.S.-Peruvian Free Trade Ties


(by Ana I. Eiras and Stephen Johnson, The Heritage Foundation)

On April 12, the United States and Peru concluded negotiations for the United States-Peru Trade Promotion Agreement, a major advance in economic and security relations between the U.S. and Latin America’s fifth most populous country. Peru’s legislature has already approved the deal, and it now awaits action in the U.S. Congress. Economically, this free trade agreement (FTA) with Peru will benefit producers in both countries with greater market access and consumers with less expensive products. From a security standpoint, it will consolidate a partnership with the seventh largest economy in South America—critical in a region where opposition to free markets and U.S. influence is being fed by populist, nationalist governments in Venezuela and Bolivia. While the FTA commits Peru to improving labor standards and their enforcement, a lingering misconception that Peru fails to fully protect workers’ rights will make passage of the agreement contentious. But failure to approve the agreement would jeopardize U.S. influence in Latin America.


Economic Benefits

Despite the small size of Peru’s economy relative to the United States’, the U.S.-Peru FTA will substantially benefit consumers and producers in both countries. Peru already enjoys low barriers for exports to the U.S. market under the Andean Trade Promotion and Drug Eradication Act (ATPDEA), which will expire in December 2006. The new FTA will make some of those benefits permanent while lowering barriers for U.S. exporters and investors. The U.S. International Trade Commission estimates a variety of benefits:

U.S. imports from Peru will increase by $439 million, or 8 percent, and U.S. exports to Peru will increase by $1.1 billion, or 25 percent;
  • The largest value increases in U.S. exports will be in machinery and electrical equipment, chemicals, rubber, plastics, wheat, rice, pork, and poultry;
  • Trade facilitation provisions, such as the definition of custom procedures, administration, and dispute, will lead to a more stable and reliable trading environment, further buttressing U.S.-Peru trade and investment; and
  • The protection of intellectual property in Peru, through new rules Peru commits to under the agreement, will be significantly improved.

Security at Stake

After only Chile and Colombia, Peru is an important democratic ally in South America’s Andean region. It trades nearly $6 billion in goods and services annually with the United States and cooperates in combating illegal drug trafficking.

Under outgoing President Alejandro Toledo, Peru has enjoyed five years of peace and prosperity. Steady GDP growth of 5 percent per year helped balance accounts and reduce poverty by a few percentage points. However, as in all Andean countries except Chile, poverty still afflicts about half the population. Peru needs a more skilled workforce, stronger rule of law, a reduction in burdensome regulations, and a commercial code that helps the poorest of citizens start a business as easily as the richest. The FTA will advance these objectives.

On June 4, Alan García won the Peruvian presidency over Lieutenant Colonel Ollanta Humala in a runoff election. Humala is an admirer of Venezuela’s Hugo Chávez, and so his loss represents a setback for Chavez’s leftist agenda for the region. But Humala’s strong showing demonstrates that his plans to nationalize industries and boost business taxes to fund social spending appeals to many Peruvians as the best answer to blocked social and economic advancement. The FTA will provide incentives for Peru to become more competitive and thus less likely to succumb to authoritarianism and closed markets. For U.S. interests in the region, this is critical.


The Right Approach on Labor Standards

The U.S.-Peru FTA fully meets the labor objectives set out by the U.S. Congress in its Trade Promotion Authority legislation. Labor obligations are part of the core text of the FTA. It specifies that both workers and employers must have adequate access to tribunals to enforce labor laws and that proceedings be fair, equitable, and transparent. It establishes a bilateral Labor Affairs Council so that the countries may cooperate to improve labor standards. Further, the FTA imposes monetary fines and loss of preferential trade benefits should a party fail to enforce its own labor regulations. This obligation is enforceable through the FTA’s dispute resolution procedures.

Beyond that, Peru is already making progress in addressing concerns over its labor standards:
  • Peru’s constitution guarantees freedom of association, collective bargaining, and the right to strike;
  • Under the Toledo administration, Peru enacted laws to reduce the number of workers needed to form a union and abolished regulations that prohibited unions from engaging in political activity; and
  • Peru is a member of the International Labor Organization (ILO) and, as such, has ratified the eight core ILO conventions.

Conclusion

The 9/11 Commission concluded that a comprehensive strategy to counter terrorism and enhance U.S. security “should include economic policies that encourage development, more open societies, and opportunities for people to improve the lives of their families and to enhance prospects for their children’s future.” The United States-Peru Trade Promotion Agreement advances those goals, as well as economic growth and prosperity in both countries.



Ana Isabel Eiras is Senior Policy Analyst for International Economics in the Center for International Trade and Economics, and Stephen Johnson is Senior Policy Analyst for Latin America in the Douglas and Sarah Allison Center for Foreign Policy Studies, a division of the Kathryn and Shelby Cullom Davis Institute for International Studies, at The Heritage Foundation.


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