UPDATE Bulletin Of the Support Group No. 128 June - July 2008

The aims of the PSG are to promote the rights and interests of the people of Peru and in particular the poorest sectors

García Two Years On: Inside this issue: The Neo-liberal Law of the Jungle? In the very same week, Peru won particularly in the highlands. The gov- Editorial 1-2 'investment grade' status and angry ernment is trying to stimulate public crowds burnt down the regional gov- investment in the interior of the country, News 2-3 ernment building in Madre de Dios. but up to now has been hobbled by the Two sides of the same coin that is operation of the so-called SNIP Legal but not legitimate: Peru: the fastest growth of any major (National System of Public Investment), Legislative Decree 1015 4-5 country in Latin America and a rising a device which gives the Minister of tide of popular discontent, particularly Economy and Finance control over Putis (Ayacucho) 6-7 in areas outside . Two years into decisions on public investment projects his second government, President Alan and the disbursement of project García may well be wondering how to finance. Events and Members’ News 8 convert growth into popularity. The extent of popular dissatisfaction is In the first quarter of this year, Gross evident in García's declining approval Domestic Product grew by over 10% ratings; these now put him on around 30%, half those when he took office Two years into his two years ago. There have been Sponsors: second government, several instances of protest on the streets in recent weeks, culminating in John Battle MP President Alan García a one-day strike of the CGTP in mid- Lord Brennan QC may well be wondering July. The strike coincided with mobili- Ann Clwyd MP sations throughout the highlands and in Linda Fabiani MSP how to convert growth the jungle. Richard Howitt MEP into popularity Simon Hughes MP García made it clear two years ago that Cardinal Cormac Murphy on an annualised basis. Propelled by O'Connor his second government would not be a investment in the mining sector and repeat of the first. Abandoning all David Nobbs high world minerals prices, growth is pretence of heterodoxy, the new gov- Rev. Ed O'Connell spilling over into other sectors, such as ernment entered into alliance with the Hugh O'Shaughnessy construction and manufacture, as business elite by deepening the neolib- Harold Pinter demand in the economy increases. eral policies initiated by Alberto Professor William Rowe While construction activity is obvious Fujimori in the and pursued by Rosemary Thorp on every block in Lima's richer neigh- his immediate predecessors. bourhoods, it is also in evidence in Wendy Tyndale some of the poorer ones. As if to rebut all criticism of his govern- Founding Sponsor: ment's economic policies, on July 14th Graham Greene But trickle down does not trickle uphill. García appointed a new finance The economic boom that Lima is minister to replace the technocratic President: Lord Avebury enjoying is largely absent elsewhere, 1 Editorial/News Alan García Luis Carranza. In the search for a replace- del hortelano). [See PSG Update, No ment he went straight to the IMF in Wash- 124]. His idea includes reforming laws to remains ington to select Luis Valdivieso, a enable investors to buy up large-scale committed to Peruvian who has worked there for many property titles in the Amazon and to whittle his plans to years on the Asia desk. By coincidence, down the property rights of peasant com- Valdivieso was sworn in on the very day munities in the Andes to encourage mining regenerate the that Peru was conferred 'investment and other activities. Peruvian grade' by Standard & Poor's, the interna- economy by tional investment risk evaluators. Using presidential decrees to approve the so-called 'Law of the Jungle' was what promoting Despite the country's buoyant growth ignited the protests in Madre de Dios. private, rates, the new minister faces a number of There has also been opposition in Ucayali problems. First and foremost is the accel- and Loreto. García had to send off his new particularly erating rate of inflation. Whether or not this environment minister, Antonio Brack, as foreign reflects just the rising cost of imported envoy to calm the passions aroused. Apart food and energy, many people are from anything, the development of the investment beginning to see their incomes rise more Amazon for forestry and other uses has slowly than prices. To stem inflation, the massive environmental implications. authorities are having to rein in credit by raising interest rates. This will hit those At the same time, the executive has who have borrowed hand-over-fist in the announced decrees that will undercut the last couple of years to buy new houses, rights of peasant communities in cars and other consumer items. defending their lands against outsiders. Using facilities conceded to him by the At the same time, imports are rising faster Congress to make Peruvian law conform than exports, and in the first quarter Peru to the Free Trade Agreement (FTA) with had a deficit on its current account for the the United States, García proceeded to first time for several years. Also, aware of sign a decree that reduces the margin by the poor use to which public spending has which communities agree the sale of land been put, the new minister may wish to to third parties. reduce public spending. In sum, Val- divieso may well reach for the lever to These controversial policies are gauged to slam on the brakes. increase the government's unpopularity in those parts of the country where its level Come what may, Alan García remains of support is already meagre. How this committed to his plans to regenerate the expresses itself politically, is difficult to Peruvian economy by promoting private, foresee. But Standard & Poor's may find particularly foreign investment. He that it has not given enough thought to mapped out his thinking last year in a political risk in awarding Peru 'investment newspaper article, entitled the 'dog in the grade'. manger syndrome' (El síndrome del perro

News: President of Constitutional Tribunal Resigns

César Landa Arroyo unexpectedly Peruvian NGO which defends and resigned from his position as President of promotes human rights. Mesía claims that Peru's Constitutional Tribunal. He was his predecessor had always been "very Mesía claims replaced by APRA's Carlos Mesía close to IDL". The appeal concerns the that his Ramírez, who told Peruvian newspaper La trial of one of the marines who was República that he would remain in the suspected of being involved in the military predecessor position until December, which is when repression and subsequent killing that had always Landa Arroyo would normally have left occurred during a riot at the El Frontón office. He also revealed that he would prison in 1986, during President Alan been "very soon deal with an appeal lodged by the García's first term in office. close to IDL" Institute of Legal Defence (IDL), a 2 News "Accused" Give Statements to Public victims' families in the trial related to the The accused Prosecutor in Río Blanco Case human rights violations in the Barrios Altos (1991) and La Cantuta (1992) killings, Mon- Piura's Public Prosecutor has begun hearings helped organise tesinos defended Fujimori stating that in the case of 35 environmental and human "President Fujimori has no responsibility for a local rights activists and local politicians from the the matters in this case." region who are accused of terrorism, kidnap- referendum in ping and extortion by the local civic associa- Retired General Nicolás Hermoza Ríos September 2007 tion ACFUCCSC (Asociación Civil Frente de recently testified in the trial. He admitted that Unidad de la Comunidad Campesina de excesses in the war against the Shining Path in which 90% of Segunda y Cajas). The accused helped rebels had occurred, but maintained that this voters expressed organise a local referendum in September could not be labelled systematic political 2007 in which 90% of voters expressed their violence. He alleged that his commando had their opposition opposition to the proposed mining activity of always defended human rights but then to the proposed Minera Río Blanco Copper (formerly Minera refused to explain why he had concealed the Majaz, and part of Monterrico Metals) in the fact that intelligence agents had killed nine mining activity region. The first of the accused to give their students and one professor at La Cantuta Uni- of Minera Río statements was Javier Jahncke, a human versity in 1992. He stated that this had been a rights defender and lawyer for non-govern- personal decision and he had not been asked Blanco Copper mental Ecumenical Foundation for Develop- to do so, either by Montesinos or by Fujimori. ment and Peace (FEDEPAZ) and coordinator of a technical support team that advises com- La Cantuta & Calle Tarata Anniversaries munities affected by the Río Blanco mining Meanwhile, relatives of the ten victims of the project. Carlos Martínez, mayor of San Ignacio La Cantuta (students Bertila Lozano (Cajamarca) and president of the Front for the Torres, Dora Oyague Fierro, Luis Enrique Sustainable Development of the Northern Ortiz Perea, Armando Richard Amaro Cóndor, Border, made up of authorities and represen- Robert Édgar Teodoro Espinoza, Heráclides tatives of the communities affected by Majaz, Pablo Meza, Felipe Flores Chipana, Marcelino also made a statement. Rosales Cárdenas, Juan Gabriel Mariños The accused will give statements over the Figueroa, and Professor Hugo Muñoz course of a month so that the prosecutor can Sánchez) have commemorated the 16th assess whether or not to pursue the criminal anniversary of the deaths. On July 18th, six charges. small coffins containing the victims' remains arrived at La Cantuta University where their Mine Pollution Emergency families held a wake. One day later they were buried in Lima. The bodies had been exhumed The government has declared a state of in 2007, but forensics experts have only been emergency at the Coricancha mine, approxi- able to identify five of the victims. mately 90km east of Lima. It has also asked Canadian company Gold Hawk Resources, This month also marks the 16th anniversary of who owns the mine, to cease operations whilst the car bombing carried out by the Shining the situation is resolved. The government Path in Calle Tarata in Miraflores, Lima (July feared that mining by-products such as 16th 1992). The attack, which directly targeted arsenic, lead and cadmium from Coricancha's Lima's middle-classes, left 25 people dead tailings dam could pollute the Rimac river, the and some 155 injured. An exhibition in main water supply for the capital. The dam memory of the Tarata bombing has been set has been weakened by seismic activity, up: http://micromuseo.org.pe/rutas/index.html amongst other factors, and subterranean water filtration and will now be relocated. The Increasing Coca/Cocaine Production company says that the tailings could be Peru is the world's second largest removed within 16 to 20 months and that it is coca/cocaine producer for the ninth consecu- looking to develop a long term tailings Montesinos tive year according to the UN office on Drugs handling solution. and Crime (UNODC). A 2007 coca survey in defended Fujimori Trial Update the Andean region shows that 181,600 Fujimori stating hectares of land are being used to cultivate and his former 'right-hand coca in Colombia, Peru and Bolivia. This is a that "President man' came face-to face 16% increase compared to the previous year in court on June 30th, eight years after they and the highest level since 2001. However, Fujimori has no both fled the country on corruption and human production in Peru only rose by 4% and the responsibility for rights abuse charges. The former intelligence biggest increase took place in Colombia. chief was called as a witness in the ongoing Although cultivation of coca grew consider- the matters in this trial of Fujimori. ably, cocaine production in the Andean region case" remained almost unchanged in 2007, rising As predicted by Carlos Rivera, lawyer for the from 984 to 994 tonnes. 3 Legal But Not Legitimate:

The Govern- National Context & the Avalanche of activities by simply gaining approval of the ment states Legislative Decrees Ministry for Energy and Mines. Peasant The Peruvian government's approval of communities, or other owners, would that it is using over a hundred legislative decrees in therefore no longer decide the fate of their the decrees to recent months has taken place under the lands but instead they would have to await context of the special authority that the decision of the State based on the promote Congress granted Alan García in order to companies' requests. investment for facilitate the implementation of the Free development Trade Agreement (FTA) with the US - that Imposition, Debate and Proposals authority was for a period of 180 days Beyond these specific problems related to in rural expiring on June 30th. This package the content of the new decrees, there are contains at least forty decrees concerning communities, more basic issues at stake. The Govern- issues related to peasant and native com- ment states that it is using the decrees to but it has munities and natural resources. promote investment for development in made no rural communities, but it has made no comment on According to the analysis of specialist comment on issues that are still to be issues that are bodies such as the Peruvian human rights resolved in those very same communities. ombudsman, several of these decrees One of the most urgent of these is the still to be exceed this special authority. One state of land ownership. It is the legal duty resolved in example of this is decree 1015 which intro- of the State to complete the process of duced substantial changes to the decision- formal community land titling, respecting those very making process for community property the community's decision on the way this same such that the sale or leasing of communal is carried out. However, the State has not lands no longer requires approval by two- fulfilled this task even though it is essential communities thirds of qualified community members, if there is ever to be a functioning rural but just a simple majority of those land market. members of the community attending an assembly meeting. One month later this Through this set of reforms, the State is was modified by decree 1073. This stipu- forging ahead in promoting a form of pri- lates that these community members must vatisation driven by minority economic have been ‘posesionarios’ (i.e. have interests. Meanwhile the Executive is occupied and used land) during the exceeding the limits of its special authority preceding year. and approving norms which change decision-making processes regarding To understand the significance of this leg- natural resources, without consulting the islation, it should be read in conjunction communities who own the land where with other decrees that have been issued these resources are found. Though the Though the recently. One of the most important of García government may be operating García these is Decree 1064 which repeals the through legal channels, it is doing so in a 'Land Law' (law 26505). This repeal has way that gives its actions little legitimacy. government the effect that 'prior agreement' of the may be landowner regarding how property will be In this sense, the issues at stake relate not used (for instance, for mining) is no longer operating only to the specific implications of the necessary. Prior to Decree 1064, the legis- decrees issued by the Government, but through legal lation established that in the absence of also to the manner in which the Govern- channels, it is prior agreement, the State could oblige ment is trying to set conditions and impose land use modification, as long as it could doing so in a its vision regarding the use of national be shown that prior forms of land use resources; resources which the Nation has way that gives could also continue unencumbered. Leg- entrusted to the State to manage on its its actions little islative decree 1064, however, establishes behalf in the best possible way for the that "lands for agricultural use are subject legitimacy benefit of all. For some commentators, this to the following land use modifications (…) form of government action is little short of installations for mining exploration and scandalous. The "scandal" here is that the exploitation…". As companies no longer government is effectively denying the need prior agreement from communities existence of the different ways in which for such modifications, they could develop 4 Legislative Decree 1015 and Others…

rural populations occupy space, appropri- mechanisms that would not require com- ...under the ate territory and use resources - ways munities to sell their lands but instead which differ greatly from the logic of large enter into associative relationships with right scale property and resources exploitation. businesses within an institutional conditions, The Government blames this diversity for framework which would guarantee their curbing the country's growth, instead of rights - a setting that would in all likeli- communities discussing what its own role should be to hood be less conflictive for these busi- are neither an ensure that income from large-scale nesses. investments are transformed into obstacle to equitable development. Ultimately its Proposals similar to these have already investment nor actions are contradictory: it promotes been made, but it has proven difficult to enemies of investment but not tax reform; it argues foster public debate on issues which that regional governments already have economic would imply substantial changes to the enough income from the mining canon actual model. One example is that of San development (1) but does nothing to strengthen their Lucas de Colán, a peasant community in management capacities; and it ends up Piura whose formal association with the accusing the regional governments of oil company operating on its lands gives it inefficiency. The final effect of all this is to a direct share in the company's profits. generate yet more tension between the While there are no such examples in the regions and Lima. And just to complete Peruvian mining sector, proposals for the picture, there has been a continued similar arrangements have been made. tendency to violate citizens' rights, a For instance, in Michiquillay in failure to enact international treaties even Cajamarca, a sector of the community when they have been ratified by the has questioned the terms of the contract Peruvian State - such as the International signed with Anglo American, and has Labour Organisation's (ILO) Convention instead proposed that community 169 - and a willingness to act with levels members either become shareholders of of intolerance and authoritarianism that the mining project or receive a percent- are ultimately unsustainable. age of the profits. Proposals such as these show us that the challenge is to This situation demands an articulated rethink the terms of the relationship response. In the case of the peasant between communities, business and the communities, although it is important to State in the process of development. criticize the norms, this on its own isn't enough. Problems within the communities By María Luisa Burneo themselves also have to be acknowl- edged and addressed: problems such as Peruvian Centre for Social Studies out-of-date electoral registers, property (www.cepes.org.pe) and member of the rights that have not been registered and Territory, Conflicts and Development in internal resource conflicts. What is really the Andes research team, needed is a proposal which shows how Manchester University ...the challenge communities can contribute to their own (http://www.sed.manchester.ac.uk/resear development as well as to rural develop- ch/andes/). is to ment in general. Just as important is that rethink the this proposal demonstrates that, under (1) Mining canon - a transfer from the State to local the right conditions, communities are and regional governments of a percentage of tax terms of the neither an obstacle to investment nor revenue generated by the mining sector. relationship enemies of economic development. between

Such a proposal should lay out new rules communities, of the game which would allow communi- business and ties to be stakeholders and shareholders in processes of rural investment on a par the State in the with the business sector and large scale process of industry. For instance, in the mining and development hydrocarbons sectors, this could mean

5 Putis (Ayacucho):

The armed forces entered Ayacucho in The Facts 1983, with the full support of President Around 1983, SL established authoritarian Fernando Belaúnde's government (1980- control over the communities in the high 1985), taking military and political control Andes region of Huanta. In Putis, the over the region, and applying indiscriminate guerrilla executed local authority leaders, repression, assuming that most of the popu- accusing them of trying to confront them lation was involved with the Shining Path through the Montoneras (self-defence (SL) guerrilla movement. Peruvian Army groups with basic weapons). This led Officers posted to rural areas assumed that community members to flee, forcing them to Source: www.bbc.com all peasants who left their villages or towns live far from the community to avoid contact to find refuge in the hills were allies of the with the military. SL's authoritarian strategy guerrilla. Consequently, Ayacucho suffered had no regard for the extremely hard living the highest mortality rates during the conditions they imposed on the peasant deadliest years of Peru's internal armed families. conflict (between 1983 and 1984). A common denominator amongst these com- munities of the high Andes is that they were In November 1984, the Peruvian Army set Quechua-speaking, rural, and poor. up a military base in Putis, in turn demanding that peasants dispersed in high Andean areas such as Rodeo, Rumichaca, Putis, a community in the Santillana district Huancas, Vizacatanpata Orccohuasi, of the Huanta province (Ayacucho) is an Cayramayo should re-settle in Putis where emblematic case of the serious human rights they could register with the army as a violations and crimes against humanity per- requirement to be acknowledged as petrated during the conflict (1980-1992). "innocent". According to the findings of Following the massacre it suffered at the Peru's Truth and Reconciliation Commission hands of the army in 1984, the community (TRC) in December that year 123 men and became deserted and wasn't even included women of different ages, including 19 in 2001's Peace Census. children, were killed by the counterinsur- gency forces. However, new evidence suggests that those numbers may be even higher.

A common denominator amongst these communities of the high Andes is that they were Quechua- speaking, rural, and poor Putis community members presenting their demands to the regional authorities, July 14th 2008 6 The Ethical Imperative of Reparation

The 2008 Findings The events in After the TRC mandate came to an end in 2003, the Public Ministry's Institute of Legal Putis are Medicine has been carrying out exhuma- symbolic of tions in areas of suspected mass graves in the Central and Northern provinces of extra-judicial Ayacucho. However, it was after the Peruvian Forensic Anthropology team killings that took (EPAF), a civil society non-governmental place in other organisation which comprises Peruvian forensic experts, became involved in the parts of the Putis case in May that the discovery was Source: La República country through- made. trust in the state and move towards recon- out the period of The exhumations of Peru's largest mass ciliation. Fear is still present, for example, Peru's internal grave in Putis revealed the remains of 60 relatives of the victims will not report to the people, including 15 children. José Pablo Reparation Council working group that is armed conflict Baraybar, director of the EPAF states: "We trying to identify them. have found bullets inside the grave, under- neath the bodies, which indicates that they - What is the state offering these communi- were killed once they were in the grave". A ties? total of 70 bullet shells have been found, The Cabinet is offering collective repara- and they match the Peruvian Army tions of up to US$30,000 (£15,000) per weapons. selected community, according to official rating criteria for affected communities. To date, five mass graves have been exhumed in the vicinity of Putis' former The provincial municipality has a Repara- school and church. All remains have been tions Plan involving a substantial contribu- examined in the Institute of Legal Medi- tion from the national and regional govern- cine's forensic research laboratory in ments to provide health and education Huamanga. However, a sixth grave has just services, as well as fostering productive been found and residents say that there are investments. eight more in the area. The District Municipality of Santillana has The Need for Justice and Reparation to drawn up a technical project for the constitu- Restore Trust tion of the Centro Poblado Menor de Putis, On July 14th, regional authorities met with an administrative category that would group the relatives of the victims found in Putis, together seven communities governed from many of whom still live in neighbouring Putis and which would provide basic public communities. But what are they asking for? services.

- Recognition, inclusion, and justice in the The events in Putis are symbolic of extra- form of: judicial killings that took place in other parts Reparation for all harm inflicted on them: of the country throughout the period of reconstruction of their houses; access to Peru's internal armed conflict. They were basic services of education, health and part of a systematic practice of human communication; and support with agricultur- rights violations. By the end of its mandate al projects. Families who returned in 2002 in 2003, the TRC registered 4,644 mass live in precarious conditions, their houses graves in the country, having carried out are practically in ruins, they have no three exhumations and 2,200 preliminary livestock, agricultural plots are no larger investigations. As the final report of the TRC than a quarter of a hectare, and there are states: "An ethically healthy and politically no schools or health services in the area. viable country cannot be built on the foun- dations of impunity".

Reparation as a just punishment for those By José Coronel Aguirre, Antropologist responsible for the executions, to restore Ayacucho, Peru 7 Events and Notices

The Peru Support Group

Child Poverty and Lack of Opportunities in Peru: Does Volunteering Help? PSG Members’ News Friday 15th August 2008 When Peru Support Group members Juany and Peter Murphy returned to Juany's native Peru three years ago, they didn't expect to Time: 2.30pm-5pm be running a not-for-profit organistation. However, on their arrival in Venue: Huanchaco, near Trujillo in northern Peru they became involved in the Institute for the Study of the Americas (ISA) Otra Cosa Volunteer Agency, which offers a variety of community- Seminar Room 12, ISA, 35 Tavistock Square, based and run projects, primarily working with children. London WC1H 9HA Juany helps with the 'CEP' school, one of Otra Cosa's educational projects. This is a community based school which was created with the Confirmed Speakers: support of a local priest, Father Victor Hugo, to help children in the Andrés Gómez de la Torre Ramon Castilla shanty town near Trujillo. The school relies entirely on (South America Programme, Manager, the work and contributions of volunteers, as it receives no government ChildHope) funding. Peter & Juany Murphy Peter Murphy had little experience in voluntary or community work but (Co-directors of Otra Cosa) having settled in Peru, he started to teach English at Huanchaco's Lily Anderson library. The objective of this 'Library project' was to give the primary school children of low income local families the opportunity to learn (documentary maker) basic English. He developed a syllabus and recruited English speaking volunteers through Otra Cosa and then trained and guided them to To register, please email: give the classes. [email protected] or call 0207 354 9825 The agency has grown significantly with a new web-site, more interna- tional volunteers helping some 20 different community projects, not just locally but also in other departments of Peru. Otra Cosa is now providing over 15,000 hours of volunteer help each year and is starting to help with fund raising too.

For more information: www.otracosa.org

Peru Support Group Unit 3, Canonbury Yard

YEARLY SUBSCRIPTIONS 190a New North Road Individuals £15 London N1 7BJ Individuals (unwaged) £ 7 020 7354 9825 Small groups £20 [email protected] Organisations £45 www.perusupportgroup.org.uk (Postage overseas £5 extra)

The Peru Support Group welcomes comments and suggestions from members concerning the Update. Articles or letters for publications are also gratefully received, although publication cannot be guaranteed. Opinions expressed in articles in the Update are those of the author and may not necessarily reflect the views or policies of the Peru Support Group. Published by the Peru Support Group