INCIDENCE OF ECONOMIC POLICIES IN TRANSFORMATION OF THE PERUVIAN AMAZON IN AN INDUSTRIAL LANDSCAPE

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ADLAF JAHRESTAGUNG 2014 Globalisierte Naturen lateinamerikanische Perspektiven INCIDENCE OF ECONOMIC POLICIES IN TRANSFORMATION OF THE PERUVIAN AMAZON IN AN INDUSTRIAL LANDSCAPE Lucila Pautrat 2014 Berlín, Germany

THE CONTEXT: PERÚ Economic Growth (June 2014): 4 % of GDP Main Activities: Oil & Metal mining 30 % of the population live in poverty and 12 % in extreme poverty One of the 8 mega-biodiverse countries in the world 70 millions hectares of tropical forests in the Amazon Basin 3.5 million inhabitants in the Amazon (13% of the country population) 1,509 indigenous communities

THE AMAZON BASIN High global importance. 7 millions km 2 (40% South America s area) The largest tropical rainforest on the planet, and the most important river system in terms of flow Food and energy for more than 60% of the Amazon population Provides livelihood to 30 million people in 8 countries, including more than 350 ethnic groups and indigenous peoples Environmental goods and services of economic, industrial, commercial, social, cultural, ethical and aesthetic value The main global system of carbon sequestration, and a megabiodiversity areas. Regulate ecological and largescale climate processes.

OTHER CAUSES: Increase in global demand for natural resources and energy sources by industrialized countries and emerging economies Weakness of environmental regulation and social standards Fluctuations of international prices of metals and hydrocarbons Consolidation of a primary exports-based market economy, Inefficiency of public administration to promote equitable and sustainable development at regional and local levels; Financial speculation and money laundering from narcotraffic and other illicit activities Influence peddling from business groups and corruption regarding the economic occupation of the Amazon territory

MACROECONOMIC AND INSTITUTIONAL REFORMS IMPLEMENTED BETWEEN 1990 2000: Sought to pacify the country, stabilize the economy, build trust and promote a favorable climate for investment The Peruvian State adhered to the guidelines of discipline and fiscal reforms of the Washington Consensus Institutional Reforms: Adoption of a new Political Constitution of Peru (1993). The creation of the National Tax Administration - SUNAT, and reform the tax system The reform of the Comptroller General of the Republic, the Constitutional Tribunal, the Judiciary, among others. International financial institutions (IMF, WB and IDB) prioritized lines of credit and assistance in infrastructure and energy projects.

From small-scale concentrated deforestation Slash & burn Illegal logging Soil and slopes erosion, To Large-scale industrial deforestation

FUEL GAS PROJECT

DEFORESTATION 2005: 7 171,554 ha 2014: Unknown -Informal settlement -Illegal crops of coca leaves - Illegal gold mining - Oil and energy infrastructure

PROJECTED INVESTMENT POLICIES: 2012-2016 PERÚ: ECONOMIC GROWTH (% GDP) - 2014

AGROBUSINESS REGIONAL PROJECTS

BIOFUELS PROJECTS ARTICULATED TO THE IIRSA INITIATIVE

Lacking: PROMOTION OF AGROINDUSTRIAL PROJECTS Land Use Planning Regulation Detailed Soil studies Cadastre of Deforested areas Ecological Economic Zoning Environmental and social regulation

INVESTMENT PROJECTS IN 2016

Road Infrastructure Projects IIRSA 12 Countries 610 Infrastructure Projects US $ 181,613 427,000

2009: Oil & gas lots offered by the Government. 80% overlap with indigenous lands & voluntarily isolated indigenous peoples reserves. Source: IBC, 2009

ILLEGAL GOLD MINING

500,000 Hectares for Palm Oil Projects

IMPACTS OF THE ECONOMIC POLICY SOCIAL: Violation of Indigenous communities rights Health problems and poverty Forced labour & exploitation 250 socio-environmental conflicts in average per months since 2004 to 2014: More then 300 people deceased. ENVIRONMENTAL: Large-scale Deforestation / Biodiversity loss Land use change and GHG emissions Soil and water contamination Breaches into National Protected Areas ECONOMICS: Money laundering from narcotraffic and illegal mining Loss of natural resources INSTITUTIONAL: Vulnerability to corruption Lack of Legitimacy of Public institutions Undermining the rule of Law

INSTITUTO DE ÉTICA Y DESARROLLO Instituto de Estudios Forestales y Ambientales Lucila Pautrat Executive Director KENÉ lpautrat@keneamazon.net