The former Minister of Economy, Pedro Francke, considered that, in the face of international inflation and the rise in prices of several of the products in the basic family basket, to grant a bonus focused on the poorest is much more effective than removing the General Sales Tax (IGV) on food products, since this reduction usually remains with intermediaries and does not fully reach the final consumer.
He said that, on Tuesday, the International Monetary Fund reduced the outlook for global growth but that Peru could grow by 3%. “But the biggest concern in the world is inflation. In the United States, Europe and Peru, prices are also hitting popular economies hard,” he said in an interview with RPP.
BONUS BETTER THAN REDUCING IGV
He indicated that emergency measures are necessary in this context, since the pandemic crisis is compounded by this new inflation crisis.
“I have proposed that a new bonus should be given, a new direct transfer, which is the most focused, lowest cost and best impact way than the other measures that have been proposed and taken. Many countries around the world are proposing this,” he said.
“Medium-term and long-term measures are also needed. For example, now that food prices are affected, an agricultural policy is needed. What we have called a second agrarian reform with much more support for agriculture,” he added.
He indicated that there is now a global shortage of fertilizers since Russia and Ukraine, which are now at war, were a powerhouse in the production of some types of fertilizers. Faced with this, he pointed out that countries such as Venezuela and Bolivia have their own production of fertilizers and that Peru should have something similar, beyond “ideologies and political color.”
“It's a matter of how we do so that our farmers can have this essential productive element. Today, thinking about agricultural production that does not have fertilizers that help agricultural productivity is going back to the 19th century,” he added.
ABOUT LAS BAMBAS
On the other hand, on the paralyzation of Las Bambas mining companies due to community conflicts, he considered it a worrying issue, since it is the largest mine in Peru.
“The effect (of the standstill) will depend on how long it lasts. If Las Bambas closes for a day or two it is quite negative, but it is not very serious. But what we cannot allow is for this to last for weeks,” he warned.
It should be noted that since Wednesday, April 20, the Minerals and Metals Group (MMG) company announced that the Las Bambas mining company will not be able to continue producing copper, due to to the occupation of their land by 200 community members of Fuerabamba, in the Challhuahuacho district (Apurímac).
“Due to safety concerns, Minera Las Bambas will not be able to continue producing copper from April 20, 2022, ″ the company said through
Meanwhile, the president of the Fuerabamba community, Edison Vargas, argued that they took possession of the Takiruta pasture sector, within the mining area, because the land where they were relocated by Las Bambas would not have legal physical sanitation.
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