Mining crisis bares Peru's deep rifts

[Judi Lynn]

Mining crisis bares Peru's deep rifts
Published Date: June 22, 2008
By Terry Wade

Blockades and strikes this week exposed deep rifts in Peruvian society and more protests are likely unless the government finds a way to spread the wealth from an economic surge to workers and the poor. With global prices rising for the natural resources that Peru exports, social conflicts are becoming more frequent and are putting President Alan Garcia in a bind.

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The latest round of protests only ended after Garcia's chief of staff promised to boost economic aid to poor provinces and beef up anti-poverty programs.

Still, more strife looms. Peru's ombudsman's office says there are 116 unresolved conflicts over natural resources nationwide. Poor indigenous communities in the mountains are demanding a bigger slice of huge profits generated by foreign mining companies, while tribes in the Amazon rain forest are worrying that oil drilling will contaminate their lands.

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Unions are also intensifying their demands for better pay and benefits. Peru's largest federation of mining unions has called a walkout for June 30, and the country's leading confederation of workers plans a general strike for July 9.

Nonoy Lanatta, director of the nongovernmental organization Grufides, says the central government has failed to fairly share mining tax revenue with the provinces, especially poor ones that desperately need help.

Many poor towns where new mines or oil and gas wells are being built lack water, electricity, schools and hospitals. "The state is totally absent in many provinces, and it only arrives once people start protesting," Lanatta said. "Mines are always beneficial for mining companies, but mines don't always end up benefiting communities and towns." - Reuters

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