Peru, the poster child for the World Bank in Latin America

October 6, 2015

Oakland Institute

Guest

Peru is to host the 2015 World Bank-International Monetary Fund (IMF) Annual Meetings, taking place in Latin America for the first time in over 40 years. The two Bretton Woods institutions, criticized for their record of lowering social and environmental conditions, seek to showcase Peru as a “success” of their neoliberal policies and reforms to the rest of the world.

In the 1990s, Peru embraced the Bank’s Structural Adjustment Program, with the aim to make the country more attractive to foreign businesses through a number of deregulation and privatization reforms, such as the lifting of restrictions on foreign land ownership. Between 1990 and 2015, the World Bank’s loans to Peru increased tremendously, channeling over $7 billion to the country during the period.
Peru has remained in the good grace of the World Bank. In 2015, it ranks 35th in the Bank’s Doing Business survey, with the second highest score in Latin America, indicating that the government has “created a regulatory environment conducive to business.” In 2008, Peru requested help from the Bank’s International Finance Corporation (IFC) advisory services for the design of a new reform agenda launched in 2009.

As a result, the World Bank’s Doing Business survey recorded 15 pro-business policy reforms ratified between 2010 and 2013, including fast-track procedures at the land registry, cuts in workers’ social benefits, and tax reductions for private companies. Following the reforms, Foreign Direct Investment (FDI) doubled from $5.5 billion in 2007 to $10.2 billion in 2013.

However, improving Peru’s business climate to attract foreign investment has had a severe toll on people, workers, and the environment, resulting in rising social conflicts. Simultaneously, Peru’s export-oriented economy has experienced a significant slow-down over the past three years, notably due to China’s lower demand for oil and minerals. The drop in the economy’s growth rate from an average of 6.4 percent in the 2000s to only 2.4 percent in 2014 raises important questions about the high social and environmental costs associated with the country’s “development” path.

Peru Fact Sheet

English

Spanish

2 thoughts on “Peru, the poster child for the World Bank in Latin America”

  1. jennifer says:

    Good day everyone, i am here to say something about Mrs flora lending company . I found her email address online regarding his loan/help towards those that are in need of a loan. So, i saw it and i was wondering if her loans where legit because I’ve never gotten any loan company residing outside the country. However, I ran into expenses and i was needing just a small loan of $15, 000 yesterday to pay for some debts that i was owning as at that time. So i collected her email online where i saw it and i decided to give it a try. Eventually i emailed him and i got in touched with him, i submitted all he’d required and to my greatest surprise, i got an alert today that the loan which i applied from.. So i couldn’t believe it until i went to the bank and i saw it reflected. So, i am using this medium to let everyone know about FLORA FINANCES and how they helped me with the loan of $15,000 . So if maybe anyone is needing a loan, i would rather advice he/she to contact her because she’s kind and as i made my research on her, she had helped so many people including me. So they are the best option to choose in Lending. Contact FLORA FINANCES today for a loan via email: (floralenders001@gmail.com).

Leave a Reply

Your email address will not be published. Required fields are marked *

 

Login / Create account


Trump: Join us in connecting the dots

The election of Donald Trump has left millions, maybe even billions of us in shock. Although we may be looking with bewilderment at the US today, we should remember that he is not an isolated phenomenon. He is a symptom of a sickness that is raging all around the world. People are hurting, disillusioned with mainstream politics and increasingly angry at a neoliberal economic system that is destroying lives and the planet with increasing ferocity. And in their desperation they are willing to consider extreme measures to make themselves heard.

Demagogues thrive amid fear and insecurity, which is why they paint the world in such dark terms. It’s a strategy that has put right-wing populist leaders in power in an Axis of Egos: from Brazil to Turkey, the Philippines to Russia, authoritarian strongmen like Trump are on the rise. Meanwhile, many centrist liberals, like the Democratic Party in the US, have been so intent on rejecting left-wing populist solutions, and so sure of their ability to beat anyone running on a white supremacy platform with its misogyny and homophobia, that they opened the door for Mr. Trump to walk straight through. Their preference is always to maintain the status quo that has served them so well.

As dangerous as the election of Trump is for the world, we can also see in this moment the truth that we simply cannot rely on the electoral political system to save us, because it is designed to prevent the fundamental change we need. Its own survival is at stake and it will marshal all its champions and resources to defend itself and stop the emergence of a new system. But when we work, or continue working for change from the ground up; when we build or keep on building new ways of living and being with each other where we live; when we construct or keep constructing the future we know is possible with our own hands, rather than hoping distant leaders will build it for us, we find our true power. Finally, when we combine that with the unbending hope that has powered change through the ages, we know our power has meaning.

A 400-year-old economic system is dying and another is struggling to be born. Change on this scale is not going to be smooth or easy. We should not be surprised, then, that moments like this — where the establishment is dealt a body blow — become more and more common. We can despair when that blow comes in the form of right-wing extremists, or we can step-up. We are the ones we are looking for, who can and must grasp the opportunities in these crises that are undoubtedly there.

So it’s time to come together, taking time to remember the earth. Remember all the successful struggles for justice that came before us, and imagine all those to come. Remember that social movements are growing all over the world and realising the common struggle. Remember life. Then, organise. Find each other and help midwife the inevitable transition that brings forth from the ashes of neoliberal capitalism a system that works for the good of all life on Mother Earth. This is not just activism; this is our responsibility as human beings alive as this all unfolds.

This is why we are here.