PERU: The Economist Intelligence Unit

Luis Quispe lquispe at
Mon Apr 29 21:24:03 MDT 1996


The publication Economist Intelligence Unit (EIU), a Wall Street
imperialist outlet, in its February release stated:

1. EIU: "Despite Fujimori's public approval which has floated in
the range of 60-70%,...the regime lacks political leadership. The
opposition Party Union for el Peru of Perez de Cuellar, has
turned into a misled organization....Lima's Mayor Alberto Andrade
is now seen as the new possible challenger to Fujimori in the
next presidential election."

The above is revealing. Fujimori's popularity is highly
questionable since SIN, the regime's intelligence services, has
the control of at least 3 opinion poll companies. Among them are
Apoyo S.A,. Imagen, who release periodically fraudulent survey
results, manipulating public opinion. Most of the surveys are
done by phone in wealthy areas. In the last presidential
election, more than 75% of the eligible voters did not vote or
voided it. Thus, the "popularity" of Fujimori is like the foam of
a beer. His only real support is the bloody bayonets of the Armed
Forces. What good has Mayor Andrade done so far? As soon as he
took over, he licked the boots of the military by pledging
loyalty to the dictator. Then, he unleashed his paramilitary,
police and Army to savagely beat and expelled  400,000 street
vendors to "clean up Lima," he fired 2,000 workers. Andrade is a
former member of the right-wing fascist group Popular Christian
Party (PPC.)

2. EIU: "During the run-up to the presidential election (first
half of 1995), the government's expenditures rose by more than
45%, compared with the year before...The current account deficit
widened to $2.68 billion in the first nine months of 1995,
compared with $1.32 billion during the same period in the year
before...It will continue to increase in the period 1996-98. It
will not cover the deficit gap. Thus, the government will be
relying on privatization of Petro Peru (oil), Electro Peru
(electricity), and Centromin Peru (minerals) to generate a three
buffer areas after which the export -by the privatized companies-
should neutralize the deficit. Tourism will also help...Total
foreign privatization revenues in 1995 reached only 1.09 billion,
less than half of 1994's 2.32 billion."

First, the above represents the IMF plan, which goes along with
the massive firing of workers, who, to survive, become street
vendors and thus plunge into poverty. The wages of all workers
are drastically reduced due to the high unemployment and
recession. Second, the privatization enforced by the military of
key economic strategic sectors, are being resisted by the workers
and people, mainly because of the increase of the political and
military actions of the People's War in 1995. The greedy foreign
capitalists thought that the revolution was defeated with the
capture of one of its top leaders. Now they woke up in nightmares
when the raging People's War is intensifying the sabotage of
imperialist investments. The crippling of the Canadian run
Ontario Hydro Power Plant by the People's Army of Liberation, is
a good example.

3. EIU: "In October 1995, the regime reached a preliminary Brady-
style debt-restructuring agreement with its commercial bank
creditors. According to government estimates, the agreement will
incorporate some $4.4 billion of principal, plus $4-5 billion in
interest. Final agreement may be reached during the first half of
1996, after which annual service costs will be $300-350 million
dollars for the next five years...According to the original
agreement with the Paris Club, annual service payments of $360m
were to be made until 1996, when the payments would increase to
around $900m per year."

That's the heart of the problem. All imperialism cares about is
how to suck up the most blood from the Peruvian people. There is
a deficit. Privatization do not solve the problem of the
reactionaries. Fujimori will increase taxes to the impoverished
people and fire even more workers to raise the money needed to
satisfy his imperialist masters. To whom does the "privatization"
benefit? EIU informs us: "As of December 1995, the bidders of
Petro Peru are Chevron, Mobil, Murphy Oil, Amoco and Exxon (all
USA)....Although a preliminary agreement with Shell-Mobil was
signed in May 1995, for the development of the Camisea gasfields,
a final contract has not been signed yet. The discrepancy between
them is that the government wants two pipelines to transport gas
to Lima over a seven year term, while Shell plans to establish a
500mw thermoelectric plant near Camisea and postpone the building
of the pipelines...Shell wants to pay only 10% of
royalties...Chevron is the competitor in this $2-2.5 billion
dollars project." [Note. Camisea is the largest gas reserve in
South America located in the Department of Cask.]

Buenavista, Hollywood Pictures), Warner and Fox, have recruited
and provided licenses to Televideo, a video rental company owned
by Frecuencia Latina, the second-largest TV channel in Peru. In
1996, Blockbuster Video opened four locations in Lima.


Peru has a very rich culture. It has produced first rate literary
proletarian writers, poets, artists and other original figures,
whose intellectual property was never respected by any regime in
place, and their foreign masters who have trafficked and profited
>from it. For example, many of the Hollywood movies and mass
marketed music in the U.S. and Europe contain the Andean music,
displays our historical ruins and architecture, etc. Have the
imperialists ever respected the intellectual property of the
oppressed countries such as Peru? Never. But, when our people use
their "U.S. patented products," for even recipes on how to make a
"slice of pizza," they use the puppet governments of our
countries to suppress the national industry. Let's read the case
reported in the EIU: "Following several months of dispute between
Domino's Pizza (USA) and the local Disdon Pizza (Peru) for the
use of similar logo colors and characteristics, the Fujimori
government resolved the issue, in favor of the US company,
considering that Domino Pizza is well known worldwide." This may
appear to be a small issue, but it clearly illustrates whose
interests serves, the genocidal U.S. puppet, country seller

          THE 1995 DEFICIT GAP INCREASED 100%.

IEU: "Peru's trade imbalance is reaching a crisis. Between
January and November 1995, the trade gap totalled $2.03 billion,
compared with a $1.12 billion deficit in the same months in 1994.
Imports were up around 40% during 1995, totaling approximately
$7.47 billion. On the other hand, according to the government,
exports reached $5.3 billion...The US is its principal market
(20% of the total) followed by Great Britain."    The total U.S.
investment in Peru is $5.41 billion dollars compared with the
relatively minuscule Japanese investment of $39.46 million (less
than 1% of the total). [Gestion, February 28, 1996] This is
important to correct the popular belief that Fujimori represents
mainly the interests of the Japanese imperialists. In reality, he
is the most faithful lackey of U.S. imperialism.

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