The rape of Peru goes on
Huancavelica has always been one of Peru's most deprived regions, with 80% of families, largely indigenous farmers living at heights of up to 5,000m, subsisting below the poverty line.
The changing weather has come on top of a lack of basic health services, animal diseases, rising food prices and a declining availability of water.
Christian Aid's Sarah Wilson has added a further dimension to the article. In a letter to The Observer, she notes that Peru is rich with copper and gold, but none of that wealth trickles down to where it is most needed:
These seams are being vigorously mined by European and North American companies under a favourable tax regime. The combined effects of tax incentives and tax avoidance means that Peru collects only a fraction of what European countries demand.
Read more from Christian Aid on Peru and taxation here.
Trickle-down theory, based on the cranky idea that if you lavish a horse with enough oats the sparrows will be able to feast on its droppings, has long-since had its day. Sadly, however, the denizens of the Washington Consensus have studiously avoided the problem of how tax holidays and tax evasion by mining companies drives a coach and horses through any possibility of the rents from mineral resources working its way to those who most need it.
Behind so many of the privatisations of copper, gold and other mining companies in Latin America, lies the dead hand of the University of Chicago and its followers at the World Bank and International Monetary Fund. None of these organisations has a word to say about tax evasion and the uselessness of tax incentives. Washington remains the epicentre of the resource curse.