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TLC TLC: DISCLOSURE AND MYSTERIES

FTA MAL: DISCLOSURE AND MYSTERIES Revelation: Our biodiversity and traditional knowledge have been delivered. In signing the FTA with the United States, Peru agree to accept the patenting of plants, not to require special conditions they are of species native to our area. On the other hand, the Treaty makes no requirement that such patents should provide benefits to Peru or the indigenous peoples whose knowledge has basic service for patent. On the issue of biodiversity there is only one letter, lateral to the Treaty in the United States only recognize the issue but do not commit to anything, absolutely nothing. Thus, the FTA signed medicinal plants native to our territory, that the Peruvians have learned to exploit hundreds of years back, could be patented genetic modification and some small gains would be exclusively for transnational corporations. Even the Peruvians will have to pay high prices for these plants, due to patent. This was the subject of public debate months ago, and Pablo de la Flor - deputy minister and chief negotiator, said publicly that this FTA defend the heritage that Peru has in biodiversity and traditional knowledge. Today, it is clear that none of it was true. is not, of course, a minor issue. Biodiversity is one of the few areas in which Peru has a great wealth. Knowledge is regarded as the basis of global development for a decade, and its economic use defines the difference between being a developed country or remain a poor country. We have a great wealth to which this government, like all the others, has turned his back, and that wealth would give this evil TLC. Mystery: Why the paragraphs referring to the possibility of raising patents and public health need is not part of the treaty, but a side letter? Why not say explicitly that the protection of test data can also be waived in these cases? Why limit this to the text emergency and does not include other public health needs, as it does the Doha Declaration of the World Trade Organization? Mystery: Why have not published the section of the Treaty relating to agriculture? How is that six weeks is enough to have the draft text on everything else except this issue is the most sensitive of all? What are you hiding? Already knew that signing the FTA with the United States would profoundly affect agriculture, allowing subsidized imports that represent unfair competition and impoverish the peasants. We knew that generics would take more power to compete and drugs go up in price. We knew that with the FTA, mining companies that pollute the environment and evade taxes would have the protection of international tribunals. All we knew. Now we also know that the negotiating team lied when he spoke of defending our biogenetic wealth, and more than a month after the negotiations were concluded, still withholding information on agriculture. Under these conditions, Ferrero and Toledo insist that this terrible Congress, unaware of the issue, to approve the FTA. What nerve.

Pedro Francke

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BRUCE THIS CONGRESS SHOULD NOT APPROVE THE EVIL

THIS CONGRESS SHOULD NOT APPROVE THE FTA Alejandro Toledo and Alfredo Ferrero insist, R with an R, that the FTA with the United States approved by the Peruvian Congress in the coming months . But they have a single reason to support them. Is there an advantage to sign FTA before? No, because ATDPEA already allowed our products to the U.S. market with discounted tax, expires in December. Peruvians Are we in a position to decide if NAFTA suits us or not? No, because the government not yet published the full text, obscuring a critical section: the agricultural sector. Is this Congress is reported and discussed on NAFTA? No, Alfredo Ferrero for two years has not wanted to go once the full Congress to inform and discuss the FTA. Has invited dozens of congressmen, with taxpayers' money, to luxury travel to earn their sympathy. But from there to believe that these congressmen, who have not heard a word about the FTA, are informed of the topic, there is a long distance. There are very few congressmen who have really studied the issue, and Elvira de la Puente and Javier Diez Canseco, and have ridden them when they have done with it. Should a government and Congress delegitimized, make decisions that are not urgent and committed to Peru for 50 years or more when we're a few weeks to elect a new government? No, an elementary democratic standard indicates that you heard the voice of the people as expressed at the polls. But that's the real reason why Toledo and Ferrero want the FTA to be signed as: fear in the elections. Because of the major candidates competing, but Lourdes Flores has spoken in favor of signing the FTA wrong now. Most plan to vote for other candidates, and big behind TLC die of fear. But that is not a valid reason when the target is the national development.

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Kouri and the toll of the AV. Faucett

Kouri AND TOLL AV. Faucett tolls cost between 1.3 and 1.5 cents per mile asphalt. Thus, for the mile roundtrip Faucett Avenue in Callao should be paying 6 cents to 20 cents as the sun. But the toll is charged 1 sun fifty, 7 times more. These are the calculations revealed by the Dean of the College of Engineering in Lima, Mr. Javier Piqué, picking studies of expert engineers. In the words of Mr. Pique, "is an abuse." This "abuse" is the product of a grant from the town of Callao directed by Alex Kouri. The same town has made the side roads are now much slower, making them more than a half dozen traffic lights and additional speed bump. So that now, or pay the sun fifty, or going much slower than before thanks to the municipality Callao. These arrangements Faucett Avenue have been so poorly designed, pedestrian bridges that do not cover all way, but leaving aside the absurd side. So that pedestrians have to cross to level with the risk for a portion of the road, and after that just go over the other lanes. The mayor of Callao, Alex Kouri, may well have walked the path of avoidance or other Lima fast track to see how they really pedestrian bridges that provide safety to pedestrians. But only those poorly made footbridges can justify the additional speed bump that force cars to slow down, pushing us to go by the way in which it takes its toll. The Engineers Association has announced that lodged Lima a complaint with the Ombudsman in relation to these tolls considered abusive. We hope that this complaint is heard. Where the granting of tracks and roads begin to be associated with abuse, an interesting way of participation of private capital in infrastructure construction will be discredited.

Pedro Francke

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25% of children malnourished

25% of malnourished children 25 per cent, or one in four Peruvian children under 5 are chronically malnourished. This means that due to poor diet and recurrent episodes of disease have not grown as expected. The biggest problem is that this growth deficiency is not only physical but also emotional and mental. If we add the anemia that affects more than half of young children, which affects their Capades tambipén learning, the picture is bleak. What does society and the Peruvian government to prevent this national tragedy? Very little. They are intended only 500 million soles a year for food programs such as the glass of milk or soup kitchens, which also most are not designed to prevent child malnutrition, but to alleviate poverty. And somewhat surprisingly, is not the same. Malnutrition not only due to the lack of income or food at home: two of every three children in extreme poverty are not malnourished, and also in non-poor children are malnourished. Child malnutrition has a lot to do with the lack of knowledge of mothers about caring for and better feed their children, lack of potable water and sewage produced by recurrent diarrhea, and deficiencies in health care. The next government should have as one of its first priorities the fight against child malnutrition. It is therefore essential to clearly state a comprehensive strategy that includes a dietary supplement - to content nutritional requirements, for families that require it, but put much emphasis on educating parents, improving health services and provide drinking water and sanitation to the unserved. Organizations glass of milk and soup kitchens should be supported so that they can play a key role in this task, including adequate food to those who really need it and serve as training opportunities for mothers.

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CANDIDATES: HEALTH IS BETTER TO ACT BEFORE

CANDIDATES: HEALTH IS BETTER TO ACT BEFORE begin to Proposals for health of the main candidates and focus is once again on the need to heal the sick. This is essential, since between 20% and 25% of Peruvians do not have health care when needed. The drama that is happening this very day thousands of poor families because one member has had an accident or serious illness and require thousands of soles for the required operation, it is terrible. The drugs that are already expensive, price would rise if it were to approve the FTA. Yet we know from international experience that the most effective way to improve the health of a people is not the attention of the disease, but the action on the social and environmental factors that damage our health. Respect, there are several critical factors in Peru. The lack of potable water and drainage is the first, and by this means spread many diseases. Still 30% of Peruvian households, especially in rural areas, no drinking water, and this is an urgent need to address. A second key issue is nutrition. One in four children is chronically malnourished. In part this is due to poverty and diarrheal diseases facilitated by the lack of drinking water. But only in part: eating habits and inadequate care of young children are a major cause of malnutrition, and the state recently that Peruvian households have access to foods rich in protein, iron and other micronutrients. Our fishing is more intended to export flour to provide Peruvians of a healthy and nutritious. Many programs are poorly targeted food: do not reach those most in need, deliver food and do not engage in improper key training and community organization. We need NOW! a comprehensive nutritional strategy. A third critical area of \u200b\u200bthe environment. The air we breathe in Lima is unhealthy. In La Oroya, children are being poisoned with lead in a grave, and the Doe Run company wants to defer investment for 4 years which is required to control air pollution: their profits are resulatn more important than health and education of thousands of children. There are rivers and lakes, then water flow is taken, are contaminated with heavy metals. Environmental pollution must be stopped. In these areas, as in many others, education is fundamental. Schools are not teaching our children how to care for their health. The most visible result of this is the bad teeth of most of the population, due mainly to poor oral hygiene, but there are many ways of ignorance, we end up harming us ourselves, including smoking, drugs and obesity product poor diet and little exercise. Education Peruvian health should grant the importance it deserves. Candidates should take the campaign to present his proposals for health promotion. Remember better safe than sorry. Top government health plans are those which take account of this very fundamental question.

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DOE RUN VS. PUBLIC HEALTH

DOE RUN VS. PUBLIC HEALTH The U.S. company Doe Run bought the La Oroya refinery during the past decade, promising to make investments to control emissions of pollutants that poison the air in the area. Today, nearly a decade later, Doe Run wants for 5 years it can continue to pollute with metals that cause serious health problems to the population. is not a slight problem. A study supervised by the University of St. Louis, Missouri, has found that children in La Oroya have more lead in their blood than international standards maximum, leading to various health problems and in particular limited mental development. 9% of children have blood lead both need urgent medical attention, but 97% exceed "levels of concern" international. 90% of expectant mothers in La Oroya have blood lead levels that compremeten fetal development. Not for nothing: the company issues tons per year of lead into the environment. The study also found elevated levels of antimony and cadmium, metals that cause cancer, genetic defects and renal failure. The excess of heavy metals extends to Concepcion, 100 miles away. The company wants to Doe Run renege on commitments it made when it bought the refinery. The reason: it is costly investments in the tens of millions of dollars. But that cost is well known when they bought the refinery. Moreover, in recent years the extraordinary international metal prices have allowed exceptional profits. Allow Doe Run is off the hook not only unacceptable from the standpoint of public health. For future privatization, it would be a clear sign that the competitors can offer anything but then have to keep his word, vitiating the entire process. In addition, reaffirm to the public the bad image of a mine contaminant does not notice anything as long as maximizing profits. We must not allow it.

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GOOD FOR MINIMUM WAGE INCREASE

GOOD FOR MINIMUM WAGE INCREASE Again in Peru debate minimum wage issue. So far, we have not heard anyone it deems to be sufficient to live to 500 soles, pose no real increase. Undoubtedly, none of the critics of raising the minimum wage has never lived with this monthly amount. The central debate, however, focuses on the potential effects of raising the minimum wage on employment. Critics of minimum wage increase have said that could lead to a loss of jobs because companies would presumably less inclined to hire workers if they have to pay more. Recent studies show that this effect does not exist or is relevant. But we must not lose sight of the macroeconomic impact. Because while wages are a cost to the company paying the other hand are also the income that families go to the market to buy food, clothing and more. So that the minimum wage increase would make companies face increasing demand, allowing them to increase production and, because it will require more workers. This increased demand, in turn, allows small and medium enterprises, move towards larger-scale technologies and increase productivity. Unfortunately, the minimum wage only affects formal enterprises, and even within them a small portion of workers, because most earn more than the minimum. For example, the minimum wage increase would affect 500 soles 360 000 workers nationwide, less than 4% of the total. Therefore, the minimum wage increase should be part of an employment policy aimed at increasing wages in general, which should go along with ensuring basic rights of association and collective bargaining for workers. We must keep wages at the very low level found from the shock Fujimori. Obviously, economic growth depends not only on demand workers, and it is necessary to preserve the macroeconomic equilibrium, since otherwise we can fall in external deficits or high inflation that does not do anyone any good. But in the current conditions of the Peruvian economy, with a large surplus in the external accounts, a modest increase in domestic demand would accelerate economic growth without risk. There are, of course, also a social effect. Who earns the minimum wage is among the poor of Peru. Enter by raising at least one element of social justice in a fragmented country with high social conflict, where the differences between the incomes of business owners and their workers are abysmal, it is also important. The discussion of the minimum wage must take into account all possible effects that would increase. And it must also consider how Peruvian society is finding its balance - economic and social - and its course towards the future. This more comprehensive analysis indicates that a significant increase in the minimum wage would be good for the country. Agree or not, hopefully the candidates will be manifest on this issue and submit their proposals on how to improve earnings in the next 5 years.

Pedro Francke

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PERUVIAN ECONOMY: Give to Caesar what is Caesar

PERUVIAN ECONOMY: Give to Caesar what is Caesar

national macroeconomic indicators go well. But things look differently if we compare with other developing countries. This comparison also allows us to determine whether the results of recent years are the result of good policies or are the product of favorable international conditions. If it were good policy, Peru should estar mejor que el resto. En cambio, si el resultado se ha logrado sólo porque las condiciones internacionales son buenas, los indicadores macroeconómicos serán positivos pero no mejores que los de los demás países.

El indicador preferido de los economistas es el crecimiento del PBI, que nos dice cuánto producimos en total. En los últimos 4 años (2001-2005), el PBI del Perú ha crecido 4,9% anual en promedio, sin duda una cifra positiva. Pero el promedio de los países emergentes y en desarrollo (cifras FMI) es de 6,2%, bastante por encima del Perú. Conclusión: son las condiciones internacionales las que han impulsado la economía peruana hacia delante, y la política económica has not been better than other developing countries. Pedro Pablo Kuczynski does not need to boast.

The second fundamental macroeconomic indicator is inflation, and those who have experienced the trauma of hyperinflation know how important it is to have stable prices. In the past four years, inflation in Peru has been only 2.0% on average, while the average of developing countries is 5.9%. Until the U.S. economy has had an inflation rate higher than the Peruvian, with an average of 2.4%. Peruvian inflation in recent years has been one of the lowest in the world and our history. Applause for the directory Central Reserve Bank, whose role under the Constitution is precisely that: to keep prices stable.

interest rates, another key macroeconomic variable are combined result of both institutions. On the one hand, the Central Bank monetary policy makes more or less money and credit in the economy, and supply management that makes interest rates rise or fall. On the other hand, the Superintendency of Banking and Insurance promotes (or no) competition and defend (or not) the public interest, making the profit margin of banks is reduced or enlarged. Between 2000 and 2005, the difference between what banks pay to depositors and what they charge for loans in soles, also called spread has increased from 17% to 23% annually, so that bank profits achieved record levels. It is clear that the Superintendency of Banks has been doing a good job. At the same time, thanks to the policy of the BCR, a one year term loan in 2000 now costs 26.5% cost nearly half: 14%.

An economic assessment of the five to be placed properly merits and demerits, and compare with the world is essential for it. Economic growth has been lower than the average for developing countries, where it appears that this growth is due to the international context and not politics neoliberal PPK, has also concentrated on a few benefits. The presiding Oscar BCR Dancourt it has managed to lower inflation than other countries, to benefit all Peruvians.

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BANKS: OLIGOPOLY WITH EXTRAORDINARY GAINS INTERNATIONAL FAIR

BANKS: PROFIT WITH EXTRAORDINARY OLIGOPOLY In 2005, banks will have profits of $ 400 million, 80% more than last year. The owners of the banks get a return above 20% a year for its capital, well above what is internationally considered a reasonable return rate and nearly double the earnings of industry and commerce. The banking business is in essence, achieve savings and then lend these funds at higher rates. Banks have obtained very large profits this year because they have increased the so-called "spread", which is the difference between the interest rate we pay to depositors and that charged for the loans they make. This difference is striking: the banks pay us less than 3% of our savings on soles but paid on average 25% of the loans they make 8 times more!. This huge gap has been increasing instead of decreasing, despite the fact that banks have had two advantages over the year. On the one hand, the percentage of people who do not pay their loans on time has been reduced from more than 10% of funds in 2001 to less than 3% this year, the lowest figure in two decades. Banks have increasingly less unrecovered credit problems, but we pay more for our savings. other hand, low inflation and economic growth have allowed the banks to increase their loans. For the banks, lend money equivalent to what other business is selling, and the more sales, more business. In the last year the bank increased its loans by more than 5 billion suns. With more sales, the weight of their administrative costs are reduced, which could improve economic conditions (interest rates) they give to their customers. But this has not happened. why banks have not improved the economic treatment to their customers? The first reason seems to be the high concentration in the banking system, only four banks account for 80% of the loans, which gives them great power in the market (and also a strong political power). The other reason is that the Superintendency of Banking and Insurance has done little to protect consumers, so that banks are still charging fees and charges of all kinds without adequate information to users. Thus, competition among banks to win over customers is based more on propaganda than offer better interest rates. That banks win, not bad. But when extraordinary profits, do so at the expense of everyone else. On the one hand, affect depositors, who receive very low rates for our money. On the other hand, increasing the burden on families who take out a mortgage or consumer and the companies that need money to move your business. The economic effect is that with higher interest rates for business, investment and economic growth are reduced. Have an oligopolistic banking system not only affects us as individual consumers but also impedes development. Do we want to stick with a bank which charges an interest rate 8 times greater for claims that what we pay to savers? Will we continue another 5 years with a banking superintendent who thinks more bankers in the country? Candidates have something to say?

Pedro Francke