Government invests millions of euros in war against poverty in order to placate discontent
Poverty. Almost half of Peruvians live below the poverty threshold, (i.e. with less than
2 dollars a day), of which five millions live a dramatic situation with less than
30 dollars a month. The Cooperation and Development Peruvian Fund has acknowledged
that this people live in extreme poor conditions, malnutrition, illiteracy, deficiency
of any electric and hygienic services and drinking water. Therefore, Alan Garcia’s
Government has decided to utilize 5% of economic growth percentage as a resource
to improve this people condition and to placate their discontent. He 48% votes
Ollanta Humala - Garcia political opponent- got in the last elections, has made
Garcia’s government aware that people’s discontent might represent a risk for
its own political power. Prime Minister Jorge de Castillo said: “Humala is not
cut out to maintain a stable political position; he’s barely read a couple of
books in all his life. He is outdated. Nevertheless we have still to overcome
the social discontent that led him to get so much power.” Government has therefore
decided to start its fight against poverty- the main reason of people discontent-
by giving the regional governments 16 millions of soles (4 thousand millions of
euros) to invest in facilities and social assistance and to promote the Crecer
(To grow) Program. The Crecer Program and the Solidarity Mining program, started
in December, will give support to 6 hundred thousand of families- i.e. to 3 millions
of people of which 1/3 are children.
Decentralization. “It’s the very first time in decentralization’s Peru history that such a large
amount money has been given to regional governments” – said the President during
his speech to announce the transfer of money to regional governments. This initiative
will be a great help for the poorest regions as such as Ancash, Cajamarca, Tacna,
Moquegua, Pasco and Cusco. Mineral resources, the leader sector of Peruvian economy,
produce nearly a quarter (1 million Euros) of the 16 thousand soles allocated
for social assistance. In fact, Peru is the most important silver exporting country
and the third exporting country of copper, tin and zinc. Export in 2006 has produced
11 thousand millions Euros. Therefore, Government decided to utilize mineral resources
for social development. Furthermore, 43 among the most important Peruvian mineral
societies have voluntarily decided to assign the 3, 75% of yearly profits to the
poorest areas of the country. That means that there are about 200 millions Euros
a year that provide support for 2 hundred thousands families. Similarly, the Crescer
Program will assign 4 hundred thousand to 6 hundred millions and 6 hundred thousand
families. That means that 3 millions of people of which 1 million children will
not suffer from hunger anymore. “If children grow up, families and the entire
country will grow as well”, Prime Minister said.
Garcia’s goals to be reached by to 2001 may be summarized as follows: take care
of mothers and children above 5 years old, launch a vaccination campaign and to
increase medical assistance. Ollanta Humala success at last elections, therefore,
has induced Alan Garcia, one of the most controversial Peru President, to act
in the name of poor’s rights.
Stella Spinelli