Living in Peru : your everyday companion

LivinginPeru.com
Isabel Guerra

An online survey conducted by the website Peru.com states that 72% of the participants thinks that Peru's President, Alan García, must do changes on the Cabinet's structure, because of the past events in Bagua (Amazonas).

The survey, run between July 1st and 3rd, also indicates that a 25% of the cybernauts believe that the Simon Cabinet should stand.

Also, 4% of the voters have serious doubts, so they prefer not to give opinion.

It is worth mentioning that Peru's Prime Minister Yehude Simon said today that his resign is “irrevocable”, and that he's waiting for Garcia's answer.

Have other topics you'd like to see in our news section? If you or someone you know would like to contribute a news article to Living in Peru, whether it's translated or based on a personal investigation, send it to editor@livinginperu.com

LivinginPeru.com
Isabel Guerra

The leftish newspaper La Primera printed today an interview to Farid Matuk, former Director of the National Institute of Statistics and Informatic (INEI), who claims that the economic figures “are being manipulated” by the government.

Matuk affirms that INEI is deliberately adding 2 points to the growth figures and lowering the poverty indicators since 2008, in order to enhance the government's alleged achievements.

“INEI is manipulating the statistics to create a false growth” he said, adding that “the growth and poverty figures are pretty much the same as the ones of the 80's”

Matuk claims that once he was removed from the INEI, the methodology he had setup was discarded, and replaced for a new one that allows the government to alter the statistics, and that “INEI has become a pro-governmental propaganda agency”.

According to Matuk, the Gross Domestic Product (GDP) would be impossible to be measured monthly, so he dismisses the INEI monthly GDP figures as a mere “card readings”.

Matuk, who was INEI's Director during the government of Alejandro Toledo, has a blog where he publishes his analysis and currently lives in Iraq, alleging that he is being politically persecuted by Alan Garcia in Peru.

Have other topics you'd like to see in our news section? If you or someone you know would like to contribute a news article to Living in Peru, whether it's translated or based on a personal investigation, send it to editor@livinginperu.com.

LivingInPeru.com
Isabel Guerra

The Peruvian netizens have started an original campaign: they are requesting the soccer fans to shut down their TV's tonight and not watching the scheduled Peru-Brazil qualifier game, so they won't have to witness a probable humiliating defeat of their team against Brazil.

This humorous campaign has been called "The lots-of-goals for planet hour" and is inspired on the Peruvian's disenchantment after the recent poor performances of their national soccer team.

The campaign, another example of Peruvian proverbial sense of humour, takes advantage of the mediatic success of last saturday's worldwide "Earth Hour" initiative, that invited all the people to turn off and unplug each and every electric device during one hour, in order to give the planet a break.

Thus, the "Lots-of-goals for planet hour" requests the Peruvians to shut down their TV's tonight between 8:10pm and 10:20pm Local Time (03:10 and 05:20 GMT), during which the soccer game will take place in Porto Alegre (Brazil).

"You'll give the Earth and your liver a break" states the campaign's ad, which is spreading very quickly amongst popular social networks such as Facebook and Twitter.

(RPP-EFE)

Have other topics you'd like to see in our news section? If you or someone you know would like to contribute a news article to Living in Peru, whether it's translated or based on a personal investigation, send it to editor@livinginperu.com.

Living in Peru
Israel Ruiz

A survey done by a public opinion group for the University of Lima showed that the majority of Limeans were in favor of a free trade deal with Chile.

Local media reported that 58.9 percent of the population in Metropolitan Lima and Callao said they supported the free trade agreement.

47.5 percent of those surveyed assured that both countries would benefit from this pact.

The study, which was done on March 7 and 8, also revealed that over 50 percent of participants had little or no information on Alberto Fujimori's trial for the massacres at Barrios Altos and La Cantuta.

Despite this, 70.7 percent said Fujimori would be found guilty. On the other hand, 23.3 percent of those surveyed said he would be acquitted.

Polls from the University of Lima also showed that Alan Garcia's approval rate had risen to 42.6 percent.

It was reported that the majority of his supporters were between the ages of 18 and 27 years old.

Have other topics you'd like to see in our news section? If you or someone you know would like to contribute a news article to Living in Peru, whether it's translated or based on a personal investigation, send it to editor@livinginperu.com.

(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.

(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.

(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

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

* 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.