Private sector will become more assertive in Peru

Subject

The influence of the business sector.

Significance

President Martin Vizcarra’s government’s qualified decision to give the green light to Tia Maria, a large copper project, is a response to strong lobbying by Peru’s business community. However, it risks inflaming regional protests by affected farmers in the southern region of Arequipa. This long-running dispute has become emblematic of conflicting development strategies, particularly given Peru’s failure in recent years to diversify its economy away from extractive industries.

Impacts

• Southern Peru will need to change its corporate social responsibility policies if it is to regain public trust.
• A minority in the Tambo valley will continue to rally opposition to the project.
• The left will seek to reassert itself using defence of the environment as a political banner.