Thursday, October 30, 2008

Mining protests shake Peru

Protests have been taking place in Peru as demonstrators are upset at the federal government. In one town, approximately 1000 marchers set a police station ablaze after officers shot tear gas near a school. In another part of the country, protestors blocked vehicular access on the Pan-American Highway.

Some of the demonstrators’ ire centers on a controversial law that affects the mining royalties received by provinces:
The current system levies taxes based on how much earth is moved at a mine, while the new law would shift the focus on how much mineral wealth is produced…

The law has been most controversial in the south of Peru, where most of the mines are run by Southern Copper, one of the world's largest mining companies…

Moquegua expects to get 20 per cent of the revenues from Southern Copper this year, while 80 per cent is set to go to Tacna.

Politicians in both provinces say they need the funds to develop basic services.
The past few months have been bad for President Alan Garcia, whose popularity has nosedived and is almost at single digits. Opponents criticize Garcia with doing little to reduce economic inequality despite modest economic growth. His cabinet resigned as a result of a massive bribery scandal involving a Norwegian oil firm. The Shining Path may be all but gone though that hasn’t stopped the guerillas from mounting several attacks this month.

Image- Living in Peru
Sources-
Al Jazeera English, Angus Reid Consultants, Los Angeles Times, The Australian, Xinhua, Voice of America

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