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About the "syndrome of the dog in the manger" A president for the nineteenth century

"... There are many unused resources are not tradable, not receive investment and that do not generate work. And all this because of the taboo of ideologies overcome by laziness, indolence or the law of the Dog in the Manger, which reads: "If I do, that does not do anyone '." Alan García Pérez, President of Peru

Article of President Alan Garcia, published in El Comercio on 28 October ("The dog in the manger syndrome"), lit has attracted comments for and against. Its chief merit is that it helps to promote discussion, virtually absent in recent years on economic development models. In what follows, highlighting some of the statements, which seem important given the status of the perpetrator.

Peru is a beggar sitting on a gold bench
President Garcia supports the metaphor implicitly Raimondi wrongly attributed: that Peru is a beggar sitting on a bench of gold. The bank gold becomes the sum of the many, varied and important natural resources that the country has: the woods of the Amazon, land, mineral resources, gas, oil, sea. The beggar, who serves as "dog in the manger" - represents a heterogeneous compound, in the relationship presidential smallholders, rural communities, populations native fishermen, workers demanding labor rights and citizens who still subscribe to "outdated ideology" (the "anti-capitalist ', states), in short, idle, indolent and indigent.

is difficult to say how many people are included in this amazing relationship, but certainly far surpasses the number of Peruvians who voted for President García. To take advantage of the gold-presidential running-reasoning is that ousting the beggar. How? Changing the rules of the game to sit on the bank of gold to large investors. If they are transnational, rather, they are bringing the technology.

charge is so full sense bills like the one that grants special powers to recognize and ignore Cofopri ownership rights over the land for four years, and as the public needs to declare the particular interests of twenty mining companies, with In order to circumvent the property rights enshrined in the Constitution, which also encourage community members, indigenous peoples and other citizens represented by the beggar in the metaphor.

The source of wealth
presidential The second claim is that the wealth of Peru lies mainly in natural resources and not primarily in the processing capacity of its citizens. The world has come to the conclusion long ago that knowledge is the real creator of wealth and human capital the most important factor, and on them rests competitiveness. So we speak today of the "knowledge society." The president goes back centuries ago to consider that the inert material extracted with little added value is the true wealth. Not surprisingly, then, the government reduced its value-and just to say, also the previous governments, give to education, primary shaper of human capital. We know that education in Peru, especially the public, is one of the worst in the world. Under these conditions, Peru can not be competitive, as much is simply a collector of rent. In contrast, the accumulated knowledge of farmers and native peoples on the complex realities in which they live and survive, are ignored and even despised by the official world.

LRA is not against the great investment. Moreover, considering that in many cases is essential for the proper exploitation of natural resources, including minerals, oil and gas. But at the same time, not to confuse the media, ie the sustainable improvement of quality of life of the whole population (in order), with different types of investment (the media). As argued in the editorial of LRA 87, the month of September, with regard to mining ("Mining" is development? "):" There is [...] a mechanical connection between having and exploiting natural resources, be they miners or others, and bring about development "," we need to redefine the role that [ mining activities] should be local and regional development [...], not in pursuance of a "social responsibility" of the enterprise-term, usually a euphemism for "public relations" and that depends entirely on the willingness of the company - but as an essential function of this economic activity. This function should be explicit in the contracts. "

What is sustainable modern
The third assertion follows from the presidential confusion between what is cutting edge technology, which supposedly brings large foreign investment, and the modern way of exploiting natural resources properly. Much of the current technology of mining and oil companies still corresponds to a paradigm of the industrial revolution two hundred years ago, in which the relationship with nature is based on "extracted without replenishing." It is noted today that the cumulative impact of this paradigm are terrible: the disappearance of biological species, water pollution and soil warming progressive in the world. Today, modern requires the opposite: the quest for development that ensures the sustainability of resources.


The anticapitalist This sustainability is at stake the future of humanity, as has just confirmed on 17 November in Valencia, the Intergovernmental Panel on Climate Change (IPCC) at its plenary XXVII . The UN Secretary General, in her closing remarks, stressed that climate change will affect more to developing countries. "The deglaciation trigger flooding and lead to reduced water availability in South Asia and South America '. And "if the IPCC projections reveal severe true, much of the Amazon will become plains without tree vegetation," he warns.

These should be central concerns of Peru and its president. But Garcia says there is a current anti-capitalist transecular skin changes according to the times: Communists in the nineteenth century (it is assumed that ruled in the twentieth century!), Protectionism in the twentieth century (Britain, USA and other capitalist countries were characterized as protectionist!) and environmentalists in the XXI century (when the Nobel Peace Prize has been awarded for their environmental merits, the IPCC and Al Gore, is difficult to define the anti-capitalist!).

Big is beautiful: the farm, new development paradigm
According to President Garcia, the community lands are "idle land because the owner has no training or financial resources, so your property is apparent. That same land, sold in large lots, bring technology ...». The President should clarify whether the rights of property of those who "have no training or economic resources" (which he described as "apparent") are of lower status than the ownership of large investors who bring technology. That is, in essence, a living of the two bills mentioned above paragraphs.

The idea of \u200b\u200b"selling the land in large lots, which brings technology" as a solution to the enhancement of natural resources, the President extends to mining, petroleum, fishing and logging. His conception of economic organization is ultimately that of a proliferation of modern farms, large estates (for agriculture, mining, fisheries, timber exploitation and gas), owned by large investors, for a hand, and thousands of peasants, natives and fishermen, workers converted (probably underpaid and mistreated, given the limited capacity and / or willingness of government to improve labor relations). Nothing more contradictory to the construction of an equitable, environmentally sustainable, with many actors, institutions strong, dynamic local markets and an active state and at the same time, decentralized.

Peru can not develop in the twenty-first century's own visions of the nineteenth century.

(This article was published in La Revista Agraria # 89 http://www.cepes.org.pe/revista/r-agra89/LRA89-06-07.pdf )

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Is there inequality because there is poverty, or poverty because there is inequality? BENAVIDES

Fernando Eguren, CEPES.

With regard to official studies on poverty, it may seem naive but I think it's worth asking what is the basic real relevance? I ask this question without implying that they have no relevance, but why are they useful? Why are they important? What do they reveal? What not to reveal? So what you can do with these studies?

Poverty is a multidimensional concept Mensi-national and complex and involves, as UNDP would "lead a long and healthy life", "access to education", "enjoy a comfortable standard of living" and other components of that life of dignity: political freedom, respect for human rights, personal safety, access to productive and gainful well, and participation in community life. Poverty, therefore, is the absence of conditions for a dignified life.

The conventional definition of poverty, which identifies it with 'low cost' trivialize this serious social problem. This conceptual simplification can be useful for governments to show successes in the field of 'costs', which is not difficult to achieve redistributive programs. Increments-tion costs is not necessarily designed to overcome of poverty, if we consider the multidimensional scale of it.

is clear that there is a connection between poverty, inequality and quality of life. Usually the condition of poverty is a result of inequality and not vice versa. Not that the difference in income creates inequalities, it is because there are inequalities in income differences.

My question then is why the official poverty studies do not include the issue of inequality. They should, since the connection is obvious. Maybe because it's obvious, in fact, not analyzed together ...

How interesting would be, for example, do some research in which surveys also include those who are not poor, with more than $ 2 a day, and so have updated information on the different income strata. Inclusion in the surveys also to middle income and high income, which would establish some kind of correlation between the evolution of poverty and wealth trends. How to evolve the richest and the poorest? What is the correlation of these developments, and how significant is it? What is the explanation for this correlation?

course! One can say: "It is better to know how many poor there are, how they are, what their characteristics where they are ", for example, have policies to alleviate poverty more focused-used, holes more efficient. But except in cases of emergency or temporary, that makes sense if policies and economic trends are directed to the maintenance and deepening of inequality. As poverty in Peru is not temporary but permanent, then it is necessary to focus on precisely how many there are and where they are poor.

Are bonanza? Indeed, the pie grows. The poor may be better off and yet at the same time, being in a more unequal society. So if we have policies that emphasize inequalities, may be the case that there is relief of poverty and deepening inequality simultaneously. These policies exist. Since the 1990 new gra-ing land reclaimed irrigation works das financing for public resources, are sold in conditions such that only large investors can access them. This will deepen inequalities in rural areas. Another example: mining companies are subordinating and displacing the rural population in a process that can be watching us as well, in some coastal valleys, by grabbing land for the expansion areas agricultural export or production in the near future, as input for biofuels.

There are processes in place, then, that tend to the deepening of inequality and thus poverty. This is why it sounds like a perverse game that, while this is happening, studies on poverty become more technically exquisite, and are designed to locate where the poor to compensate for the sar-. There is a phrase of William Nugent says, "confirms the normal redistribution of inequality." And this in Peru and becomes normal.
There is thus a series of fundamental problems in this inequality, which should be incorporated in a debate, a discussion of how to deal with poverty.

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MINISTER IN THE TOWN OF ACHO: WE DESERVE BETTER PROPOSALS

Fernando Eguren

Days after President Garcia's speech on July 28, which established some ambitious economic and social goals for 2011 - the year in which his term ends - the Minister of Agriculture , Ismael Benavides, did the same in the Plaza de Acho. The media have reported on some of the characteristics of the call, officials of the agricultural sector were taken in buses to fill the stands, fishing without ears or tail, pifeadera the Hon.

Peru, leader in agricultural production may

infected with the boundless optimism presidential Minister Benavides average-uncle Peru in 2015 to become the leading country in agricultural production in the Pacific coast of America South. That GDP agriculture would reach 12 billion dollars (apparently the confidence in the new soles still does not like to make projection of medium-term in our currency), that in 2011 agricultural exports al-canzarían U.S. $ 4.5 billion (U.S. $ 2100 in 2006), which would create 400 000 new employees pleos 200 000 direct and indirect, that rural poverty would decrease by 35%.

Piña. It Alvaro Rojas, the Chilean counterpart Benavides, estimates that this year Chile will be exporting agricultural products worth U.S. $ 10 billion, more than double than projected by our minister in four years. Just this fact to question the goal of being leaders in agricultural production by 2015.

On the other hand, with the dynamic that Chilean agriculture, between 1987 and 1996, rural poverty fell only by 23%. What to say Benavides is based in Peru's rural poverty reduction will be much higher in much smaller time?

Another goal advanced by the Minister was that the average annual growth in agriculture will be 7% until 2011. Meta baseless because, according to information from the Ministry of Agriculture itself, the annual change in agricultural production since 2003 was, year after year, 1.9%, 1.7%, 4.8.%, 7.2%, and the projection for 2007 is 4.5%. It is also very daring overtaking growth rates of a productive sector that is highly dependent on climate variations, even more if global climate change make it even less predictable.

The water problem

Acierta Minister to raise the issue of water and it is necessary to mention the management and conservation of watersheds. But not necessarily hits in their priorities. Offers 200 thousand new hectares of irrigated land on the coast and the Sierra, 30 000 new hectares irrigated by drip into the mountains, 100 thousand hectares recovered on the coast and mountains. But no mention of the serious problem of water pollution from mine tailings, industrial and urban waste, which affects a large number of rivers and lakes in the country, being the most scandalous case the Mantaro River. Nor does it mention the need to reduce crop areas that make heavy use of water and contribute to salinization (and loss of fertility, therefore) of soils, especially on the coast. Rather, it is promoting the expansion of sugar cane fields to make ethanol. If no drastic measures against water pollution, salinization of soils and deforestation, it is meaningless recover 100 thousand hectares [1] because new areas will continue to deteriorate. Markets



In relation to 'market access', another of the pillars - and the name of the minister - of the agricultural policy of this government, reiterated its support for agricultural exports but makes no mention of the FTA United States the need "to design a sys-tem fair compensation to reach the poorest when they most need it."

on agricultural credit, and the Minister Benavides had rejected the law passed by the Con-gress that Agrobanco operate as retail banking, it offers no alternative to fit the needs of finance for small farmers. Pro-me-you throw the agricultural insurance 'in the first quarter of 2008, "which is now a ritual ofrecimien-to any new minister.

Offers develop an information system 'capable of reaching eight million Peruvians' by an Agricultural Information System using Channel 7 and Radio National. If you do, congratulations, but here it could be more ambitious, given the experience in information systems in a pilot course using modern information and communication technologies - including the interesting experience with the development CEPES Valley Board Members Chancay Huaral - and the spread of Internet connections in many rural areas.

proposes further agricultural research 'to achieve higher yields of major products, "mentioning two coastal crops, corn and cotton, but without specifying what criteria to define those who are leading those who are not (may be covering more area, or more are exported, or those that produce the majority of farmers ...) or resources to be allocated.

The offer of a "productive rural development fund" of more than U.S. $ 1000 million for the saw struck, then the minister said it would be an integrated fund ongoing programs like FONCODES.

Sierra Export Program

Minister Benavides had already expressed their displeasure at another time with this program led by engineer Gaston Benza who, throughout his short driving has shown little understanding of the complexities of physical, economic and social in that region. Neither President García - supposedly the creator and ideologist of this program - not the Minister Benavides deigned to mention. Benza sign that either falls, or the whole program falls.

We deserve better proposals
There are experiences and accumulated knowledge, both in public administration and outside it, that could support strategic options and related policies more suited to the realities and needs of a very complex country but at the same time many potentialities. But more realistic goals can be better informed less conspicuous and spectacular. Not a good demonstration of the ability of government targets likely meet throwing ego ruler, but not necessarily true priorities or are not attainable.

---------------------------- [1] In late 1970, the National Office Evaluation of Natural Resources, ONERN, Maba estimated that two in five acres of farmland on the coast, some 300 000 hectares, were salinity-lysed, and half of them seriously. ONERN was liquidated during the Fujimori government, and since then there is no in-public entity systematically to monitor the status of our natural resources.

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BERTHA consiglieri, colleagues, friends, IS DEAD

Consiglieri Bertha, colleague, friend, died
From a small room on the outskirts of Brussels remember my friend Bertha. A few hours ago my wife and her friend always gave me the bad news by phone. It was a surprise of course. A sad surprise. But at the same time maybe I should have been wary something: looking back, Bertha's health did not seem right for some time. With Bertha

we knew more than three decades as a militant of the same causes. Not for a moment stopped believing in what I thought since I was a young journalist, chronicled by the peasant movement in the seventies in notable magazines as I should not have left more. Naturally he joined CEPES since the early eighties, not to leave us more.

During those years, and until the last day of his life, he wrote hundreds, thousands of pages of agricultural and rural developments, always loyal to his beliefs and commitments of youth: the farmers' right to dignity, respect their civil rights, the right to good quality of life. Beyond the rural, space has always been the center of interest, Peru wanted a truly democratic. Moreover, in the last institutional document CEPES, Bertha introduced an amendment to our mission: not enough to orient us toward democratic development, he argued, but point to a just and equitable world. Bertha

absence leaves a world of my affections and all colleagues of CEPES. But it also leaves a great void as a worker in a specialized institution in the rural agrarian question: was the most known. It was his way of being closer to those you will always be identified: farmers.

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IS URGENT A NEW CENSUS OF AGRICULTURE
Fernando Eguren

CEPES

The Ministry of Agriculture has placed before the public a preliminary draft State Policy for the Development of Agriculture and Rural Life 2007 - 2021, which can be found on its website. It is an opportunity for citizens to express their views on what forms the foundation of an important state policy.

A State policy should propose ob-je-long-term objectives and steps to reach "them up. They must have a knowledge of the matter about which defines the policy. In this case, agriculture and rural areas. Knowledge, in turn, requires accurate and reasonably complete and current. In the case of agriculture, the most complete information dating from 1994, which was the last agricultural census. In the last decade, the 'climate' of neoliberalism and the giving of the land law in 1995 must have contributed to important changes in rural areas, cu-scale and do not know precisely. It is urgent that a new census agricul-cuario.

Does the structure of land in Peru is again polarized-dose?

So we do not know how many units agricul-cuarias currently exist in the country: they are more or less the thousands available in nearly 1,750 census year. What have been regional changes?

not know what the ownership structure of the earth today. Since 1994 there have been several tens, if not cen-dreds of livestock farms on the coast, beyond the 150 hectares (which was the maximum allowed by the land reform law of 1969 to pre-god of individual ownership, the co-ra-tions were not limited in size). Now existing in this region have real estates, private property over one thousand hectares of extension (in the case of the former sugar cooperatives, as well as some agricultural enterprises with export crops).

Much is said about the small farm is a big problem. But we do not know what the current situation compared to thirteen years ago, if there is a growing trend towards the fragmentation of tenure, and in which areas would be happening.

economic diversification of rural areas

is necessary to know how to have diver-si-fied the income of farmers-res, so-ber all small. Already in 1994, noted the significant dependence of small farmers and small farmers off-farm income, both agrarian and non-agricultural rivers. If these off-farm income are more important today than before (which is very possible) sour, then strategies to improve the economic situation of small producers would not only-and often not even primarily-by improve agricultural production conditions, but to stimulate diversification of the economy rural (and the labor market) and densify the relationship between rural and urban areas. The role economic promoter of regional governments and municipalities in this regard is of great importance.

Conditions for competitiveness

A new census would also provide valuable information about the basis for developing agriculture competitiveness. According to the 1994 census, about 60 percent of drivers of plots or had not received any formal education or had not completed primary education (which, incidentally, in rural areas is very low quality). On the other hand, levels of technology were deplorable: in 1994, 31 percent of producers used only energy Zaban human life with productive des extremely low. "The situation has improved or worsened? Answers to these questions would be very valuable to support both educational and technological policies. If the situation remains co-mo in the past and do not define policies to overcome, the prospects for a competitive agriculture GIDAS be restricted to a few areas, regions and producers in the country, to widen the already significant social and economic differences.

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skeptical United Nations to biofuels

few days ago did the United Nations published its first report on biofuels. A consortium 20 agencies and programs of the UN concludes, in essence, that although the ethanol-a biofuel, can help reduce global warming and create jobs for the rural poor, these benefits may be offset by serious environmental problems and rising prices of food for starving populations. ( http://www.nytimes.com/aponline/world/AP-Biofuels.html?_r=1&oref=slogin )

This organization joins a major wave of skepticism that reacts to the enthusiasm of governments and big investors who, for some time, promote the use of biofuels on behalf of environmental protection and to give opportunities to the rural population depressed. European leaders have set a target that by 2020 10 percent of fuels will be of biological origin. President Bush also raised the target for biofuels consumption in the U.S. for the coming years. As these major energy consumers do not have enough land for crops needed to produce, require that poor countries like Peru make available its own land for these purposes.

But the UN report warns that the "fad of biofuels" - as the world body called the - Can be as damaging to the environment as fossil fuels. Another risk is that rapid growth in biofuel production will increase significantly the demand for fertile land and water in the world at a time when growth has increased the demand for food and forest products. Adding to this that the expansion of large-scale monoculture can lead to significant loss of biodiversity, soil erosion and nutrient loss. We have warned about these risks in other papers (see The Journal of Agricultural March in www.cepes.org.pe ).

The speed in Peru - and other Latin American countries-is intro do "fashion for biofuels" by big investors backed by the government has left no time for weighing up the pros and cons expansion of sugar cane crops, oil palm and other crops that are their main inputs. It is a State duty to report objectively - not propaganda - to the public on the advantages and disadvantages of this aggressive campaign, and responsibility of civil society to inform and express an opinion on a process that can have negative environmental consequences that should be prevented.

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Dairy cattle and biofuel

few days ago, dairy farmers in several basins were mobilized to protest the low prices paid per liter of milk large processing companies, to conclude that prices charged to each other (which is prohibited .) The problem is serious, as their production costs have increased, partly because the price of corn - an essential component of animal feed - has increased by 30%.

What has that to do this with biofuels? For the United States, which produces 40% of corn in the world and accounts for half of world exports of this product is devoting increasing volumes of ethanol production. It is estimated that within a few years half of U.S. corn production will be transformed into ethanol. And as more farmers in this country are shifting to corn and concentrating more land for that purpose, is also increasing the price of other crops and livestock products. Some projections of the price increase by the year 2020 produced by the increase in biofuels: 41% corn, 76% oil, 30% of trigo.135% of cassava.

This is the subject of a recent article in the influential journal Foreign Affairs [1] , from which we extracted information of this note. The authors contend that what may be a boon to corn growers, may be a punishment for the poor. "Fill the tank with 25 gallons of a 4x4 vehicle with pure ethanol requires over 200 kilos of corn-containing enough calories to feed one person for one year." President Bush has set the target for ethanol consumption year 2017 to 35 billion gallons. To supply enough in calories to about 78 million people a year! Supposedly to relieve the pressure on the environment by replacing fuel 'dirty' by fuel 'clean', are deforested Southeast Asia in large areas to plant oil palm for biodiesel conversion.

"biofuel mania" well qualified FA what is happening in the United States-two, and also starting to happen here. In Peru, the shares have risen sugar undertakings have been awarded huge areas on the northern coast to produce sugar cane for ethanol is building a biodiesel plant in Callao-da will be supplied by oil palm of our forest, is proposed to free the production of biofuels from excise tax (the commission of Economics Congress already approved). What happens in the U.S. is beginning to happen in Peru: "... the biofuels industry has been dominated not by market forces but by politics and interests of a small number of large companies."

The effects of the spread and production of biofuels are so important they deserve a public debate that cuts across three policy areas on which there is almost no discussion: the national policy on energy, food security, and politics environment.
[1] C. Ford Runge and Benjamin Senauer, "How Biofuels Could Starve the Poor" (How could Biofuels starve the poor) Foreign Affairs, May / June 2007. Http://www.foreignaffairs.org/

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The smallholding as President Garcia

President Garcia said in Chicago that the smallholding "is totally impro-ductive and a tragedy for the country", that the profitability of agriculture is consolidating when the producer has a minimum of 20 acres .... " [1]

turns out that in Peru, according to the 1994 agricultural census, 92.2% of farms have less than 20 hectares. If smallholders are referring to the vast majority of production units Peru's land, contrary to what is in the presidential you would be a tragedy for the country that did not exist, because they provide 71.5% of the gross value of domestic agricultural production. They are the basis of food security in Peru, as seven of every 10 tons are produced by these small farms. [2]

President confuses small commercial agriculture with small farms. Agriculture small-let us call it, arbitrarily, which has between 5 and 20 hectares of land under irrigation, can be economically viable if there was a favorable context. Favorable context is access to credit, assistance technical, roads, access to public goods (information, communication, education, health, etc.). In this state, ruled today by President Garcia, has a great responsibility that is assumed. By contrast, large-scale agriculture does not need state support, although he gives it in different ways (selling land irrigated by public investment at prices below costs, mounting export promotion offices). Not everything is the fault of the current government: the government of former President Fujimori dismantled what little they had government support to small farmers, and the following governments did nothing for it.) Yet

without a favorable context of smallholder agriculture has demonstrated its ability to progress. The case of coffee - most of them smallholders by the standards of pre-sident - organized into cooperatives, associated with the Coffee Board, have managed to overcome a serious crisis of low prices to guide production to gourmet and organic coffee.

President Garcia rightly recommended that drives the formation of associations, small farmers to overcome some disadvantages of the small scale of production. But here too the government has a role to play in providing, for instance, access to certain services to small farmers who are associated.

But what about the small farms 'real', those which neither one hectare, which are also hundreds of thousands, home to the very poor? Imagine García chairman what would happen if they had the hectare, which allowed for better or worse pro-duce some of the food they need to survive and a space for housing. These smallholder families must also engage in other economic activities to supplement their income, so their members migrate temporarily or defi-nitely. This sector of the rural poor numerosísimo have great benefits if it were happening in Peru not only a political - administra-tive, but also a decentralized economic development. The multiplication and diversification of rural economic activities and the strengthening of relations between the countryside and small towns and intermediate open new opportunities for small land holdings-ists who, without necessarily having to abandon their lands' to be viable agricultural land 20 or more acres', would agree to a diversified labor market. Today is a strategy called 'development land'. Also here is for the central government task guidance and encouragement.

At the same time the President García said it should stop growing rice because it is not profitable and consumes a lot of water. But it is being delivered tens of thousands of land for sugar cane cultivation - cultivation is also a large consumer of water - to produce ethanol for export by pre-em-large companies (who are demanding tax breaks to be profitable!). At least the rice used to feed the population and is a source of income for thousands of small farmers! And it Sierra Exportadora program that looks more like a program for large investors to take advantage of the ecological peculiarities of this re-gion that to help some of the peasants (most of them small farmers) to escape poverty. Otherwise it can be understood the statements of Mr. Benza, president of the Program, 200 000 hectares devoted to cultivation of inputs for biodiesel exports.

concern is that behind the president's words may be intended to guide the development of agriculture by the end of the consolidation of large agricultural companies dedicated to exports, and continue to ignore the needs of hundreds of thousands of families 'smallholders' and the very concept of rural development.

[1] See El Peruano, Tuesday April 17, 2007.
[2] After thirteen years, it's time the government makes a new agricultural census to update this information, without which it is difficult to design and implement rural development policies.