Peru president apologizes to poor, vows increased anti-poverty aid

[Judi Lynn]

Source: International Herald Tribune/Associated Press

Peru president apologizes to poor, vows increased anti-poverty aid
The Associated Press
Published: July 28, 2007


LIMA, Peru: President Alan Garcia apologized to poor Peruvians for failing to improve their lives during his first year in office, and vowed renewed efforts against poverty.

Garcia, one of Washington's closest allies in Latin America, has presided over an economic boom driven by high world metal prices, but his popularity has slipped as the poor grow frustrated at being left out of the bonanza.

"I would have loved to do a lot more," Garcia said in his nationally broadcast state of the nation address to Congress, acknowledging that his government had not worked fast enough to help the poorest Peruvians.
(snip)

Resentment toward Garcia, 58, is most visible in rural highland regions such as Huancavelica, where nearly 90 percent are poor.

"They're not making us a priority," said Jorge Quinto Palomares, a regional government official. "The Huancavelica hospital is the only one in the region. The equipment is more than 50 years old."




Read more: http://www.iht.com/articles/ap/2007/07/29/america/LA-GEN-Peru-Slumping-Garcia.php

[Judi Lynn]

1. Oh, that's O.K. The poor are lucky to live in a country with such beautiful new fountains!

27 July, 2007 < 08:00 >

New Fountains in Lima, Peru Recognized by Guinness Records


8005...

© Andina
(LIP-ir) -- Due to the color, lighting, music and beauty of the fountains, the Magical Water Tour will be a place of reflection and inspiration for all Peruvians, stated Peru's President Alana Garcia, alongside Lima's Mayor Luis Castañeda at the inauguration of the new attraction last night.

Peru's Chief of State pointed out that the new fountains, built at the Parque de la Reserva, will equip Peru's capital city with an attraction that other countries around the world also have.

On that note he stated that the 13 ornamental fountains would quickly become, in short time, one of Peru's main tourist attractions and contribute to the country's image, the same way Machu Picchu has.

The President added that the Parque de la Reserva was the adequate place for the beautiful works of art. Garica went on to congratulate Mayor Castañeda for having headed the construction of a sight which could now be appreciated by many.

Mayor Castañeda stated that having the best fountains in the world and having participated in such a project had been a dream come true.

More:
http://www.livinginperu.com/news-4357-travel-tourism-new-fountains-lima-peru-recognized-guinness-records

Praises be to Peru's re-elected President, the one backed by _Bush in their last election, Alan Garcia, who drove the economy straight into the ground the first time he served as President, years ago.



http://www.whitehouse.gov.nyud.net:8090/news/releases/2006/10/images/20061010-4_d-0171-1-515h.jpg

[Judi Lynn]

2. Peru president regrets failings

Last Updated: Sunday, 29 July 2007, 02:18 GMT 03:18 UK

Peru president regrets failings

Peru's President Alan Garcia has said his government has not done enough to improve the lives of the poor.
In a speech marking his first year in office, Mr Garcia - who has seen a sharp decline in his popularity - urged Peruvians to show patience.

He promised that increased investment would cut poverty before the end of his term in 2011.

Peru's economy is booming, but correspondents say the poor are yet to feel the benefits of its growth.

Mr Garcia has faced protests by several different trade unions in recent weeks.

He has apologised for calling some of the demonstrators "communists" and "parasites".

More:
http://news.bbc.co.uk/2/hi/americas/6920927.stm

~~~~~~~~~~~~~~~
Hope he doesn't re-activate Peru's death squads, to scare some respect into these pesky poor people. You never can tell, can you?

[EFerrari]

3. He regrets his failings? Well, that's cool then.

:sarcasm:

[Captain Angry]

4. I wonder how much of this is pressure from Chavez.

Not direct pressure, just pressure from the Peruvians that see Chavez is doing something for his own people.

So metal prices are bringing an economic boom, but not one that is trickling down to the people. Hmm...

I wonder what kind of royalties the country is receiving from the mining companies. Or how much money comes in a briefcase to avoid national royalty systems.

[Judi Lynn]

5. Just happened to see your post, got curious about those metal profits,

ran to google and found this immediately:

PERU: ‘Voluntary Payment' Instead of Taxes for Mining Firms
by Milagros Salazar, Inter Press Service (IPS)
August 25th, 2006

Peruvian Prime Minister Jorge del Castillo told Congress that private mining companies operating in Peru would make a "voluntary payment" of 757.5 million dollars over the next five years, to go towards fighting poverty. However, they will not pay the tax on windfall profits that new President Alan García had promised in his campaign.

After the negotiations with more than 30 large mining companies, del Castillo announced Thursday that the amount set "respects the principle of legal stability." He also said a portion of the funds would be immediately forthcoming.

The 757.5 million dollars will come in place of royalties and a tax on the windfall profits generated by high metal prices during García's five-year term.

Only two of the 27 biggest mining companies operating in Peru currently pay royalties. The other companies signed legal stability contracts under president Alberto Fujimori (1990-2000), aimed at promoting private investment. The contracts lock in each firm's tax status, in some cases until 2018.

Nearly all of the companies that do pay royalties are small and medium-sized operations.

Peru, which ranks fifth in the world in terms of gold production, second in silver, third in copper and zinc, and fourth in lead, "is a beggar seated on a throne of gold" -- according to a popular local saying -- as it is one of the countries in the region with the highest poverty rates.
(snip)

The foreign mining companies operating in Peru have been raking in major profits in the past few years. According to government figures, the Yanacocha gold mine, the largest of its kind in Latin America, which is owned by the U.S. Newmont Mining Corp. and Peru's Buenaventura firm, saw its net earnings soar 225 percent between 2002 and 2006.
(snip)

In Cajamarca, where the Yanacocha mine -- the second largest gold mine in the world -- is located, nearly 75 percent of the population is poor.

And in the region of Cusco, where the Tintaya copper mine -- the country's third-largest -- is passing from the hands of the Anglo-Australian BHP Billiton to the Swiss-based Xstrata, nearly 60 percent of the population is poor, according to official statistics.

In the northern Andean region of Ancash, where Canadian mining giant Barrick Gold extracts tons of gold, 55 percent of the population lives in poverty, and 23 percent in extreme poverty.

To address these inequalities, President García said during his campaign that "a contract is a contract" -- referring to the legal stability contracts -- but suggested a new tax on windfall profits in order to spread the wealth around.

However, in his very first message to the nation, when he took office on Jul. 28, he changed his tune, saying "dialogue could lead us to an agreement on an extraordinary payment, instead of new taxes, which they (the companies) could object to on legal grounds."
(snip/...)

http://www.corpwatch.org/article.php?id=14069

~~~~~~~~~~~~~~~~

Astonishing, and loathesome! Looks as if you are RIGHT ON TARGET.

[Captain Angry]

6. Now we see if he even sends them the bill.

Look at the US royalties unpaid by big oil. They're responsible for them, but they're not being collected.

Hmm...

[Judi Lynn]

7. Nationwide Protests Rock Peru, Bush Seeks Allies In Latin America

Nationwide Protests Rock Peru, Bush Seeks Allies In Latin America
by Benjamin Dangl
July 29, 2007

National protests rock Peru as President Alan Garcia navigates through an increasingly tumultuous labor and teacher uprising. Rejections of a free trade agreement with the US and neoliberal economic policies are at the heart of the national uprising which has left three people dead and several wounded.

Protests have stemmed from an increasing gap between the rich minority and the poor majority in the country. Most of Peru’s population of over 27 million survives on less than a dollar a day. "What we have in Peru is economic growth without social development," a political analyst, Ernesto Velit, told Reuters.

President Garcia, who in his election campaign promised he had learned from his disastrous mistakes in a previous presidency, is now experiencing a sharp decline in approval ratings. Miners, farmers, construction workers and teachers in Peru are demanding better wages and revisions to the country’s free trade agreement with the US. The international Manco Cápac airport in Juliaca, Peru was occupied by 5,000 workers who set fire to furniture and office equipment in the facility. Members of the Unified Trade Union of Education Workers of Peru (SUTEP) protested the passage of an educational reform law which teachers contend will privatize education and put hundreds of teachers out of work. Protesters are also demanding an assembly be organized to rewrite the country’s constitution so that Peruvians can "effectively recover their rights."

A train carrying tourists to Machu Picchu was pelted with stones thrown by local protesting campesinos. Police officers and one governor were taken hostage by strikers and transportation in many provinces has been at a standstill for days. The teacher strikes closed down 70 percent of the country’s schools, while other protesters blockaded roads and occupied government buildings.

More:
http://www.zmag.org/content/showarticle.cfm?SectionID=20&ItemID=13393