Extractive industries and regional development: Lessons from Peru on the limitations of revenue devolution to producing regions

ABSTRACT

The transfer of oil and mining revenues to the subnational governments of resource-rich jurisdictions is a common policy aimed at promoting development and reducing local opposition to extraction. In the early 2000s, Peru implemented a radical version of that policy. Peruvian mining regions received fiscal transfers many times greater than the national average during the last commodity boom. The strategy had mixed effects on well-being indicators. These transfers had statistically significant positive effects on economic growth and the rate of school attendance at different ages. In contrast, they did not have a significant impact on poverty reduction or the coverage of other basic services, while being positively correlated with an increase in the income gap between women and men. Overall, the results are not as positive as the promoters had expected. The transfers generated political incentives for local authorities to pursue short-term, clientelistic spending that has reduced their potential benefits.     

Filling in the Gaps: The Transnational Administration of the COVID-19 Pandemic in Peru

Diverse sources have constructed a common narrative of individual and isolated responses by countries and their leaders to the global coronavirus pandemic, akin to sálvese quien pueda (every man for himself). This article suggests that this is a simplification of the governance of the COVID-19 pandemic in Peru. Peru's governance story is one of domestic public and private action closely interwoven with crucial elements of transnational administration out of sheer necessity. The struggle against the pandemic has generated a domestic and transnational administrative symbiosis, involving authorities at multiple levels in efforts to fill a series of interconnected domestic, regional, and global governance gaps.     

The rise of a capitalist subsistence economy in Peru

The Peruvian economy depends for its growth on the export of its mineral resources. This dependency is derived from the country’s role in the international division of labour and is expressed in its export structure, economic structure and business structure. Peru’s dependency on its mineral resources, an economic structure that is principally made up of non-tradable sectors and a business structure dominated by micro businesses, make lasting economic progress very difficult. We argue that although the Peruvian economy is divided into an advanced economy and a capitalist subsistence economy, the country is not a dual economy where two sub-economies are economically and socially separated from each other and have structurally different modes of operation. The capitalist subsistence economy is characterized by low productivity levels and is expressed in remuneration rates at or near the minimum wage level. This structural feature of the Peruvian economy impedes the successful implementation of a process that would make the country less dependent on its natural resources and would set it on a development course of increased value-added production.     

The Impossibility of Party Unity in Peru: Party Affiliation,Subnational Electoral Competition and Party Discipline (2011–2019)

Party division in Peru is a constant event and has become an expected feature of Peruvian parliamentary politics. For instance, in 2016, the elected Congress was composed of six parliamentary groups, and at the moment of its dissolution, that number doubled. This article explores the factors that produce such rapid division in the Peruvian Congress during two parliamentary periods (2011–2016, 2016–2019). It argues, through quantitative analysis, that there is a direct and negative relationship between the fragmentation of parliamentary groups and party discipline due to party affiliation and the dynamics of subnational party competition.     

Rethinking Indigenous Politics: The Unnoticed Struggle for Self-Determination in Peru

Most scholars characterise Peru as a country with weak indigenous movements, whose demands would have no influence in regional and national policies, even though its socio-economic structures are similar to those of Bolivia and Ecuador, where indigenous movements are stronger. Based on fieldwork in the northern Peruvian Amazon and Lima between 2012–2013 and 2016–2018, this article argues that pro-indigenous legislation enacted as a response to strong indigenous mobilisation as well as the creation of indigenous autonomous governments in the Amazon express an unnoticed struggle for indigenous self-determination. These social phenomena also raise questions about the common assessment of the strength or weakness of indigenous movements.     

Historical Everyday Geopolitics on the Chile-Peru Border

Geopolitics is increasingly seen by scholars as occurring in everyday spaces and performed by ordinary people. This paper extends this idea to historical work to examine how citizens themselves (re)produce geopolitics at the time of historical events. It does so through a case study of geopolitical tension on the Chile-Peru border in the 1970s. Through oral histories and newspaper analysis, a historical everyday geopolitics approach reveals how those living in the Chilean border city of Arica played a part in promoting national and border security. This centres the embodied and emotional experiences of those affected by violence and conflict.     

The origins of APRA in Cajamarca, 1928–1935⋆

From its foundation in 1930 until the late 1980s, the Alianza Popular Revolucionaria Americana (APRA) comprised the largest and best organised political party in Peru, but surprisingly few studies exist on how the organisation was established and built up a mass following at the provincial level. This article examines the birth of APRA in the Andean department of Cajamarca. It highlights the support the organisation obtained among key middle–class groups (i.e. lawyers, schoolteachers, cattle dealers, etc.), and the links they forged with the rural and urban poor. APRA's efforts to mobilise “new” social actors, such as women and students, are also described.     

‘It’s a Limited Kind of Happiness': Barriers to Achieving Human Well‐being among Peruvian Migrants in London and Madrid

This article examines migrants' self‐reported experiences via application of human well‐being approaches to deepen exploration of the barriers that migrants themselves identify in achieving their goals and getting their needs met. A focus on the construction of human well‐being can potentially provide a more holistic approach to debates on international migration. Discussions have focused on labour market integration, paying less emphasis to migrants as social agents and the psychosocial elements that they consider important for achieving human well‐being. This article applies human well‐being approaches to assess the barriers that Peruvian migrants identify in the contexts of London and Madrid.     

Symbolism and the construction of political products: analysis of the political marketing strategies of peruvian President Alejandro Toledo

This paper introduces a discussion on how to construct and systematise symbols constructions that serve to define the guidelines for political discourses, using rhetorical methodology. It analyses the political marketing strategies of current Peruvian President Alejandro Toledo and, more specifically, his efforts to recover popularity after one‐and‐a‐half years in office. The fundamental hypothesis is that Toledo has not been able to construct a solid character (apart from being in opposition to Alberto Fujimori), who would be the protagonist in the ‘story’ of solving the real problems of the people, which, according to the opinion polls, are lack of employment, lack of opportunities, and lack of money for daily expenses. The rhetorical approach, based on Kenneth Burke's Dramatism Theory, is useful for understanding the construction of the political spectacle, the scene where all the marketing strategies and tools are applied. Copyright © 2004 Henry Stewart Publications