Sunday, April 10, 2011

Bloomberg Interview with Alejandro Toledo




In this interview, Toledo says that he wants Peru to remain open to the international economy. He desires investment in all sectors of the economy, and in particular emphasizes his commitment to openness to investment in the mining sector. Activities of mining companies in Peru have been particularly controversial because of their impact on the environment around local communities and their substantial contribution to the Peruvian national economy. 


   On the one hand, they have been responsible for much of the economic growth that has helped Peru grow for 7% a year in the past few years. Fearful of scaring investors away from Peru, the more market-committed candidates like Keiko Fujimori and Toledo have promoted their contribution to the national economy. Although Toledo does say that mining companies must remain aware that their business can only continue to operate within social and political stability, and must take that into consideration when conducting their operations.


  On the other hand, many rural communities are upset over the misuse of and pollution in their local water supplies, as well as the perceived unequal distribution of the wealth being derived from mining activity. These groups form the base of support for Ollanta Humala. The nationalist leftist candidate wants to increase the state role in regulating and taxing the mining sector in order to redistribute some of  the income from this sector to invest in socioeconomic initiatives in the country, such as health and education.   

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