Peruvian president Ollanta Humala declares investment promotion in 'national interest'.
| Autor | Jana, Elsa Chanduvi |
With the aim of reversing economic actors' loss of confidence following the slowdown in economic growth in the first quarter of this year, Peruvian President Ollanta Humala in late May declared investment to be in the national interest and announced seven measures to boost it.
The economy grew 4.8% in the first quarter of 2013, the lowest quarterly growth rate since the end of 2009. In addition, the Banco Central de Reserva (BCR) reported that the Indice de Confianza Empresarial, which measures business confidence, dropped from 67 points to 60 points between January and April.
At a May 25 press conference, Humala explained that the "bump in the road" was in large part the result of a global slowdown that led to a reluctance to invest in the extractive sector, such as mining, following the decline in international prices for gold and copper, Peru's principal exports. To show that the national-interest declaration for private-investment promotion was not merely symbolic, Humala said that "additional measures were taken."
The measures announced by the president include creating a task force to oversee mining-investment projects in energy and infrastructure. The president also announced a supreme decree aimed at reducing bureaucratic hurdles for obtaining approval for environmental impact studies (estudios de impacto ambiental, EIAs). The decree calls for approving EIAs in less than 100 days.
BCR president Julio Velarde had said several days earlier that such hurdles were delaying investment projects. "An Apoyo Consultorio report indicates that projects worth US$10 billion are delayed by red tape, permits, etc.," warned Velarde, adding that the government must give clear signals to business owners to regain their confidence as well as solve the bureaucratic problems that undermine investments.
"A decision of this kind will tend to further relax the environmental filter that the EIAs represent," said Jose de Echave, former vice minister of environment.
Broader expropriation rules enacted
The approved measures also include promulgation of the "expropriation law," aimed at streamlining the use of land for infrastructure works such as highways and constructing or expanding ports and airports.
Under the 1979 Constitution, the state could expropriate for "social interest" reasons, that is for the benefit of society. Under the neoliberal 1993 Constitution, this possibility was eliminated by limiting reasons for expropriations to national security or...
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