Living in Peru : your everyday companion

Peru's cabinet offers to resign over scandal

Sixteen Cabinet ministers offered their resignations to Peruvian President Alan Garcia on Thursday in the wake of an oil-kickback scandal. Opposition lawmakers had called for the officials to step down, but it is not known if Garcia will accept the offer, which comes just days after the resignations of Peru's energy minister and the president of the state-run oil company. (AP - click here to read complete article)


Peru's cabinet in turmoil over scandal

Peru's entire cabinet offered their resignations on Thursday following a scandal that has linked president Alan Garcia's party with the granting of oil concessions to a favoured bidder. Jorge del Castillo, prime minister, made the promise as he left Congress, after members of the opposition walked out in protest. Mr del Castillo said he felt it necessary to make the offer to defend "the honour of this Cabinet, which has worked with honesty, austerity and dedication". (FT - click here to read complete article by Naomi Mapstone)


Peru's Central Bank Holds Rate at 6.5% Amid Turmoil

Peru's central bank left its benchmark rate unchanged as concerns over the global financial crisis tempered worries about rising consumer prices. The central bank's board, led by President Julio Velarde, voted to maintain the benchmark rate at 6.5 percent. Nine economists surveyed by Bloomberg predicted the bank would leave rates steady; eight others expected a quarter-point increase. (Bill Faries - click here to read complete article by Bill Faries)


Can Free Trade be Fair? Lessons from the Peru-U.S. Free Trade Agreement

The U.S.-Peru Free Trade Agreement has provided President Alan García with an excuse to dismantle the nation's environmental and labor standards. The President's approval ratings have sunk as popular support for his policies continues to vanish. The United States has been complicit in Peru's legal and economic deterioration, a fact which must be taken into account before further FTAs are signed. (CHA - click here to read complete article)


PERU: Banking sector remains optimistic

Peru is considered one of the most promising banking markets in Latin America, as about half of all working Peruvians still do not have bank accounts. As the economy continues to perform well, loans to the small- and medium-sized business sector in Peru are seen as a driver of growth. About 80% of all the country's exporters are classed as small companies and many are in need of loans. Global banks HSBC, Citibank, Scotiabank and BBVA are all present in Peru. Development of financial products such as derivatives, corporate bonds and exchange-traded funds tracking local and regional indexes has allowed banks to serve corporate clients. (IHT - click here to read complete article)


Del Solar Confident In Peru's Chances

Jose del Solar affirmed to the press on Thursday, that "when playing in La Paz, Bolivia are the favourites, even when they face Brazil or Argentina", but he hopes this changes with a victory for his side when they meet Bolivia on Saturday. "We have prepared ourselves to change history, and to pick up a positive result that will allow us to stay alive in the qualifiers", the coach stated only hours after travelling to Tacna with his national side. (Goal - click here to read complete article)


Peru work on the altitude

Peru must face Bolivia in La Paz in round 9 at the South American Qualifiers. Due to the fact that the altitude is always something that affects all players seriously, the team coached by Jose del Solar work hard on the physical aspect. Moreover, one of the exercises done by the players were kicking the ball from any point of the field; it proves that will be Peru's main weapon for the ball goes faster in the altitude. (Sports Ya - click here to read complete article)

PETA blasts Peru's cat-eating festival

An annual festival of fried cat-eating in Canete, Peru, has raised the ire of animal rights groups, officials with the groups said. The "Gastronomical Festival of the Cat," a two-day event at the end of September, involves the eating of specially bred cats that locals claim can cure bronchial disease and work as an aphrodisiac, The Sun reported Wednesday. A spokesman for People for the Ethical Treatment of Animals sharply criticized the event. (UPI - click here to read complete article)


Fury over Gastronomical Festival of the Cat in Peru

Kitty burgers, hot cats, puss on a hot tin griddle... Peru will have them all at an upcoming festival. Animal rights groups are fuming about the annual festival near the Peruvian capital that serves up hundreds of fried cats to locals. The Gastronomical Festival of the Cat features people in Canete, near Lima, eating the fluffy creatures because they believe that eating cat burgers – and fried cat legs and tails – can cure bronchial disease. (Herald Sun - click here to read complete article)


Peru: disappearances in Ayacucho

Forensic examinations have determined that five bodies found in Ayacucho department, Peru, are relations of Lucy Pichardo, a peasant woman who reported the disappearance of 11 family members after the National Police had conducted a "counter-subversive" operation in the area. The bodies are reportedly those of her husband, brothers and a sister-in-law, who had been pregnant. Pichardo says two children and four adults remain missing. (WW4 Report - click here to read complete article)


Nonprofit medical group returns from Peru

The Corazones con Esperanza (Hearts with Hope) Foundation recently wrapped up its third annual trip to Arequipa, Peru, where they spent over three weeks providing free medical care to children. Founded by Dr. Juan Alejos, associate professor of pediatric cardiology at the Mattel Children’s Hospital UCLA, the nonprofit foundation raises money to send medical experts to Latin America, where they help local hospitals and orphanages screen, diagnose and treat children for cardiac and dental problems. (Daily Bruin - click here to read complete article by Jennifer Lin)


Minister fired as oil scandal threatens to engulf Peru president Garcia

Thousands of protesters denounced Peruvian president Alan Garcia on Tuesday, a day after his energy minister quit in a widening scandal over steering oil concessions to favoured bidders. Members of Peru's largest labour confederation, the CGTP, demanded President Garcia shake up his cabinet and change his free-market economic model, which critics say has caused growth to surge, but failed to lift people out of poverty quickly. (Irish Times - click here to read complete article)


Peru Bank May Struggle on Rate as Inflation, Economy Pose Risks

Peru's central bank will struggle to balance concerns about quickening inflation with uncertainty over the impact of the global financial crisis when it decides whether to raise rates for the seventh time this year. Economists surveyed by Bloomberg are split over whether the bank will raise or hold its benchmark rate today. Seven of 13 economists forecast a quarter-point increase to 6.75 percent; six say the bank will leave the reference rate unchanged. (Bloomberg - click here to read complete article by Bill Faries)

Oil contract scandal shakes Peru

Peru's energy and mines minister Juan Valdivia has resigned after a scandal allegedly involving kickbacks for oil concessions came to light. Mr Valdivia denied any wrongdoing but said he was stepping down as he had to assume political responsibility. On Sunday, a TV station broadcast a tape allegedly of a top state oil official and a lobbyist discussing payments to help a firm win contracts. The two men have been suspended pending an investigation. The company involved, Discover Petroleum of Norway, has denied any role in the scandal. Managing director Jostein Kjerstad said that the company "has never known about or been party to any payments like these". (BBC - click here to read complete article)


Discover Petroleum Issues Statement Regarding Corruption Allegations in Peru

With reference to today’s news headlines at Norwatch and dn.no regarding allegations of corruption in Peru, Discover Petroleum International (DPI) will give the following statement: According to our understanding, several Peruvian individuals have since February last year been monitored and suspected of corruption. (Oil Voice - click here to read complete press release)


Native Groups Hemmed in by Coca Threat

Small farmers from Peru’s impoverished Andean highlands provinces of Ayacucho are moving into indigenous land in the country’s central jungle region to grow coca. The growing numbers of people occupying land in the traditional territories of Amazon jungle communities are driving away members of the groups, who fear drug traffickers and guerrillas that operate as allies in the area. (IPS - click here to read complete article by Milagros Salazar)


UCLA medical team returns to Peru to help kids with heart conditions

Hundreds of Peruvian children suffering from congenital heart conditions will be resting a little easier, thanks to a visit by a team of volunteer pediatric heart experts from UCLA. The group, led by Dr. Juan Alejos, associate professor of pediatric cardiology at Mattel Children's Hospital UCLA, wraps up its third annual trip to Arequipa, in southern Peru, on Oct. 4, following more than three weeks of free surgeries, clinical evaluations and other medical procedures for needy children at local hospitals, orphanages and clinics. (Media-Newswire.com - click here to read complete article)


Peru Hoping To Spoil The Party

Peruvians Juan Vargas, Hernan Rengifo and Paolo de la Haza all declared their intentions to obtain the six points in their upcoming World Cup qualifiers against Paraguay and Bolivia. Vargas stated, on arrival at Lima, that both matches will be "very complicated", but Peru will confront them with a "positive" attitude, as they are in great need of the points. (Goal.com - click here to read complete article)

Peru children demand right to work, end to exploitation

Child labour may be condemned as a gross abuse of human rights, but in Peru children are demanding their right to lawful employment as an alternative to labour exploitation, arguing if poverty persists, so will child labour. The Manthoc Child and Adolescent Workers' Association uses its scarce resources to promote the rights of children and a better quality of life for labourers under the legal working age. (Indo-Asian News Service - click here to read complete article)


Family adventures, Peru to Alaska

Since 2005, Adventures by Disney has led family trips in locations around the world. Among the 23 itineraries set for 2009 is "Sacred Valleys and Incan Cities," an eight-night Peruvian journey that delves into the ruins of the Sacsayhuaman fortress and rediscovers the once-lost cities of Machu Picchu. A raft trip down the Urubamba River, a tour of the salt pan terraces of Maras and up-close encounters with llamas and alpacas await Indiana Jones wannabes, young and old. (Chicago Tribune - click here to read complete article)


Gas pipeline for southern Peru

Construction of a $1.4bn, 700-mile pipeline to carry natural gas from Peru's Camisea fields to its impoverished south will begin in 2010, according to Kuntur Transportadora de Gas, which will sign a contract with the country's government today. Kuntur, a subsidiary of US private equity firm Conduit Capital which focuses on infrastructure in Latin America and the Caribbean, has announced that construction will take up to three years. (Financial Times - click here to read complete article by Naomi Mapstone)


Ball boys spark fight in Peru

Ball boys attempted to delay a Peruvian championship match by deflating the balls on Sunday, sparking a brawl between officials from the two teams. In another game, Sport Boys supporters attempted to attack their own goalkeeper after he conceded a late goal. (Reuters - click here to read complete article)

Peru inaugurates APEC workshop on anti-corruption

Peruvian Justice Minister Rosario Fernandez inaugurated on Thursday an anti-corruption workshop to be attended by delegates from 21 economies from the Asia Pacific Economic Cooperation Forum (APEC). Fernandez said Peru is striving to maintain the political stability after a long period "when the corruption was present at all the power spheres." The "Anti-corruption workshop to ease the international cooperation on the recovering of assets" is part of the prior meetings to the APEC Dignitaries Summit to be held in November in Peru. (Xinhua - click here to read complete article)


Ancient Peru Pyramid Spotted by Satellite

A new remote sensing technology has peeled away layers of mud and rock near Peru's Cahuachi desert to reveal an ancient adobe pyramid, Italian researchers announced on Friday at a satellite imagery conference in Rome. Nicola Masini and Rosa Lasaponara of Italy's National Research Council (CNR) discovered the pyramid by analyzing images from the satellite Quickbird, which they used to penetrate the Peruvian soil. (Discovery News - click here to read complete article by Rossella Lorenzi)


Peru studies climate riddle as the world heats up

Scientists are using everything from a yellow submarine to weather balloons and special airplanes to solve a climate conundrum: why is Peru getting colder while the rest of the world heats up? Researchers from Europe, the United States and South America started collecting reams of data this week from clouds, the shoreline and deep underwater to try to figure out the dynamics of the southeastern Pacific. (Reuters - click here to read complete article by Terry Wade)


Velarde Says Peru Bank May Add Liquidity to Economy

Peru's central bank President Julio Velarde said policy makers may cut reserve requirements for banks to give the Andean country's financial system more liquidity as international loans become costlier. The central bank last week eliminated reserve requirements for international bank loans for terms longer than two years, giving banks $100 million in additional liquidity. Reserve requirements may be reduced further, Velarde said. (Bloomberg - click here to read complete article by Alex Emery and Karla Palomo)

President says Peru financial structure sound

Maybe sometimes it helps to be poor. Peru's President Alan Garcia on Thursday urged his country not to panic over the global financial crisis — in part because it's "a problem of the world's rich countries." Garcia said "imprudent" decisions over financial regulation contributed to the U.S. crisis, as did out-of-date government oversight that failed to adapt to a U.S. economy driven by new high-speed technologies. (AP - click here to read complete article)


Poverty in Peru has unlikely supporter

Peru's fight with poverty has an unlikely supporter in the shape of a Streatley charity. The Streatley ALPACA Project, targets specific projects in the Vilcashuamán province which they hope will improve the health and education of the indigenous Quechua people. (The Reading Chronicle - click here to read complete article)


Poverty rampant throughout Peru

"These kids have a rough go … but have eyes filled with hope," associate professor of history Patrice Olsen said when referring to the children living in Amauta, Peru. According to Olsen, poverty strikes hard in this region of South America. (Daily Vidette - click here to read complete article by Alyssa Siegele)


Peru to Investigate Disappearances

Parliament and human rights organizations in Peru announced investigation of reports over disappearance of 11 farmers during counter-rebel military operations. The Commission of Andean People's Congress agreed to send an investigating team to Pichis Rio Seco locality, in the Andean central region of Ayacucho, from where the denunciations came. (Prensa Latina - click here to read complete article)


Peru to create special force to protect Amazon biodiversity

Peru plans to create a special task force to safeguard forests and monitor the rivers in the Amazon basin, Environment Minister Antonio Brack has said, EFE reported Thursday quoting Peruvian media. The environment and the interior ministries have been working together to create the special cell of some 3,000 officers to be known as the Environment Police, the minister told the official Andina news agency. (Indo-Asian News Service - click here to read complete article)


Perú: Bloggers Adopting Congressional Representatives

At the beginning of this month, television host Rosa María Palacios published on her column in the Peru21 newspaper an article titled We Have the Right to Know [es] in which she wrote about her fruitless tries to get information on a congressman's expenses, we may supposed, as the base for one of her television notes. When she wasn't able to get them, she prompted other citizens to do the same and pressure congress. (Global Voices - click here to read complete article by Juan Arellano)


Latin American Currencies: Peru Sells Record Dollars, Sol Falls

Peru's sol sank below the 3-per-dollar level for the first time this year, prompting the central bank to pour $443.8 million into the foreign exchange market, the most ever in a single day, to stem the decline. The sol's tumble was part of a rout in currencies across Latin America that was fueled by concern that a $700 billion U.S. financial-rescue plan won't avert a global economic slump. (Bloomberg - click here to read complete article by Drew Benson)

Workers strike Freeport's Cerro Verde mine in Peru

The union at Freeport-McMoRan's Cerro Verde copper mine, the third-largest in Peru, said on Thursday workers were on strike. In June, union workers struck at the mine for 11 days in an attempt to pressure the company to comply with provisions in their labor contract. "The strike started, at 6:00 (1200 GMT) this morning," Leoncio Amudio, head of the mine's union, told Reuters. (Reuters - click here to read complete article)


LAN Sponsors Humanitarian Mission to Earthquake-Ravaged Region in Peru

For the second time in 2008, LAN Airlines, South America's leading airline, is working with its partner Break Away: The Alternative Break Connection, to send students from the U.S. on a humanitarian trip to South America this week. As part of an ongoing commitment by LAN to help communities in need in its home territory, on September 25th, the airline flew students from Loyola Marymount University in Los Angeles to Chincha, Peru, where they joined "Un Techo Para Mi Pais" (A Roof for my Country) in helping local residents who are still recovering from the deadly earthquake that struck in 2007 in the construction of houses with materials that have been donated by LAN. (MarketWatch - click here to read complete article)


Peru to create special force to protect Amazon biodiversity

Peru plans to create a special task force to safeguard forests and monitor the rivers in the Amazon basin, Environment Minister Antonio Brack has said, EFE reported Thursday quoting Peruvian media.The environment and the interior ministries have been working together to create the special cell of some 3,000 officers to be known as the Environment Police, the minister told the official Andina news agency. (IANS - click here to read complete article)


Antonio Guerrero’s mother returns from Peru, impressed

Mirtha Rodríguez, the mother of Antonio Guerrero, one of the five anti-terrorist fighters imprisoned in the United States, returned from Peru today and announced that she felt a tremendous impact from her emotional exchanges with young people from that country. During her participation in the 9th National Conference of Peruvian-Cuban Friendship Societies, Mirtha met with intellectuals and young people, and shared stories of her son’s life, especially those related to his time in prison. (Granma - click here to read complete article)

Peru: Interview with Political Prisoner Lori Berenson

American activist Lori Berenson was pulled off a bus in Peru in November of 1995, detained by anti-terrorist police, and tried for treason against the Peruvian state by a hooded military tribunal. A gun was held to her head as she received her sentence: life in prison. Accused of being a leader of the MRTA (Tupac Amaru Revolutionary Movement), Lori was one of thousands of people kidnapped, tortured, disappeared, and/or imprisoned during then-president Alberto Fujimori’s campaign to defeat rebel groups. (Indybay - click here to read complete article by Emma Shaw Crane )


Peru well-prepared for global financial crisis

Peruvian Prime Minister Jorge del Castillo said on Tuesday that his country is well prepared to cope with the fallout of the international financial crisis. The Peruvian government has long tasked the Economy and Finance Ministry (MEF) to take preventive measures against potential economic risks, Castillo said. "Peru has prepared itself in a good way," Castillo said, adding the financial crisis may be a "hurricane" for other countries, but it would only be a "cold wind" for Peru. (Xinhua - click here to read complete article)


Peru eager to sell its avocados to Americans

Guacamole lovers could soon dip their chips into a bowl of the appetizer made with Peruvian avocados. Peru wants to compete with California growers after a free trade agreement between the U.S. and the South American nation takes effect. "We're going to be a direct competitor to them," Ricardo Romero, Peru's Los Angeles-based trade representative, said to Greater Houston Partnership members Tuesday in Houston. (chron.com - click here to read complete aritcle by Jenalia Moreno)


Peru cenbank works to keep Sol stronger than 3/dlr

Peru's central bank intervened in the local foreign exchange market again on Tuesday in what traders said was a move to keep the sol firmer than 3 per dollar. The monetary authority, which for much of this year was buying dollars to prevent a surging sol <PEN=PE> from overshooting, has since June been selling dollars from its $35 billion in international reserves. Reserves hit a record this year thanks to the central bank's dollar purchases. (Reuters - click here to read complete article)


TAM expands flights to Lima, Peru

TAM will be launching a new daily flight service with promotional fares from Sao Paulo to Lima, Peru starting this October 17. Promotional fares, which are valid for tickets issued before October 17, will start at US$ 585.00 in economy class and US$ 2,041.00 in executive class for round trip service, not including fees. The new Lima service will continue TAM’s international expansion strategy, according to Paulo Castello Branco, TAM's Vice President of Sales and Planning. (eTravel Blackboard - click here to read complete article)


Peru squad prepares for World Cup qualifying

Peru manager Jose Guillermo del Solar continued not to give a hint whether he will reinstate four top players in a squad with newfound confidence in World Cup qualifying. For this month's qualifiers, del Solar opted to forgo activating the four stars who were suspended for holding a hotel party during training for World Cup qualifiers in late 2007. (AP - click here to read complete article)

Living in Peru
Israel J. Ruiz

Peru's Cabinet Chief Jorge del Castillo urged fellow Peruvians today to "nationalize" their consumption of food to reduce the country's dependence on imported products.

Del Castillo assured that the government was already doing this to save money and move away from depending on imported products.

"That's why in barracks, hospitals and prisons native products with a higher quality will be used to reduce costs," said Del Castillo during the inauguration of the "Consume what Peru produces" campaign.

When explaining the aim of the program, the Premier stated that the Andean country's most common products would be identified and their consumption would be promoted.

In this manner, we will reduce the importation of products such as soy and wheat, which increase the cost of living, affirmed Del Castillo.

This is not the first campaign Del Castillo has embarked on to foster the consumption of national products in an effort to help citizens save money and help Andean farmers sell their products.

Peru moved up four places to seventh in the 2008 Democratic Development Index for Latin America, ahead of Colombia and Brazil and among 18 countries analyzed by the Konrad Adenauer Foundation.

Costa Rica is first in Latin America with an index of 10.00, followed by Chile at 6.50 and Uruguay 8.7.

Argentina ranks sixth 5.7, Colombia eighth 4.6 and Brazil ninth 4.5, according to the seventh annual report of this index.

The lowest ranked countries are Ecuador, Bolivia and Venezuela.

Some 50 percent of Latin American countries show a low democratic development while the number of nations with a mid democratic development increased.

According to the report, Peru grew more than 22 percent compared to last year and moved up four places.

With this result, Peru became one of the countries with mid democratic development and best performance in this group.

The score in the item Respect for Civil Rights and Freedom increased more than 6 percent compared to last year.

This is due to a rise in the insecurity index. The rest remained stable, except in Gender, which fell slightly. In this item Peru still ranks 6th place and its index is above the regional average.

Peru’s performance on Dimension III has been positive, based on better values in Perception of Corruption, Participation of political parties in Congress and Accountability.

The other indexes of this dimension show no changes. Peru achieved the best score in the series and ranks 5th place in the table. Peru’s index has already exceeded the regional average and presents a high level of democratic development.

In the economic area, results have been higher than previous years due to favorable results in the Index of Economic Freedom, GDP per capita and Investment.

Other economic indexes remained unchanged. Peru ranks 10th in this area, moving up one place compared to 2007, just below the regional average.

The slight rise in Capacity to generate policies that ensure Welfare has been the result of a strong growth in high school enrollment rates, but the other indexes decreased.

Peru is still one of the last in the regional table (15th) and its index is below the regional average in this item.

News source: ANDINA