Monday, June 13, 2011

Peru: mining tax example

Peru is not a poor country. Its mineral wealth includes gold, silver, zinc, copper, tin and lead, which enjoy bumper world prices and comprise 60 per cent of the country's exports.

President-elect Ollanta Humala has outraged mining companies by promising a windfall tax on their profits to pay for state pensions, health care in rural areas and higher salaries for public-service workers.

After meeting Brazilian President Dilma Rousseff he commented: "A country cannot consider itself rich if its population is living in poverty. This means we need social programmes to help those living in extreme poverty."

Brazil was the first country he visited post-election, although he plans to travel widely before his July 28 inauguration, taking in Venezuela, Paraguay, Uruguay, Argentina and Chile.

Humala insisted on the need for good relations with Washington, indicating a wish to meet Barack Obama prior to taking office.

"We must strengthen our ties with the United States because of our fight against drug traffickers, a fight that involves the co-operation of all nations," he explained.

The Peruvian president-elect's desire for normal links with the powerful northern neighbour is shared by other popular leaders, but they speak as equals and wish to be seen as such.

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