ECONOMIC CHANGE: pincer movement
The election debate has found an unusual consensus: no one agrees to rely on the "trickle down", and all the candidates say that mining generates very few jobs and raise the need for a change in economic orientation. Bad news for the neo-liberal IPE: in the public debate, and left.
The question now is how to achieve this change of economic model to one in which the majority of the population, especially the poorest, may benefit. The issue is not easy, because this model has a lot of economic strength. In essence, the paradigm shift requires what is called a pincer movement, ie the simultaneous display of two movements that surround the enemy.
A movement is the redistribution of large gains, particularly those that produce our mining, oil and gas, especially now that commodity prices are soaring. Also the banks and AFPs are achieving exceptional returns. Establishing fair conditions for the exploitation of our natural resources and taxing higher earners is crucial to obtain the resources needed for education, health and quality of social protection and come to all Peruvians. This is a movement of redistribution, making the state meet to ensure social rights from a collective utilization of national wealth. Restore basic labor rights is another policy in this regard.
The other movement is to encourage employment-intensive sectors such as agriculture, industry, tourism and small businesses. Here we must emphasize in policies that expand markets, provide credit, arrange production chains, provide trade information and promote the adoption of new technologies. This is a movement of sectoral shift, turning into a growth generates employment and decentralized.
These two movements have two essential connections and therefore the need to march together. On the one hand, credit programs, business information and technical assistance for agriculture and SMEs require public financing, which can only come from the increase in tax revenue. The other connection is the sector: only taxing the mining and large capital on the one hand, and promoting the agriculture and small businesses on the other, is that the rudder will turn the force necessary to change the course of growth into an inclusive and comprehensive. NAFTA acogotar
both movements. On the side of tax collection and large mining capital, the FTA prevents the Peruvian state contracts check detrimental to national interest, as in the case of Camisea. On the other hand, the FTA will remove the agricultural market place where products, as imports of subsidized U.S. will make unfair competition (and 97% of the land is for the domestic market and only 3% export).
growth
Search inclusive employment generator without renegotiating terms with mining and distribution of large monopolies, and signing the FTA, is impossible. Nice to know when deciding vote.
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