At Rumbo a PERUMIN – Southeastern Peru Edition, Fausto Salinas commented that, according to the UNDP, Peru’s HDI has grown by 60.2% in the last decades. Nevertheless, he stressed that this and other indicators are not enough to understand the country’s development if it does not previously have economic growth and income from productive activities.
.“The Peruvian HDI grows sustainably largely due to a change in the mining model, from state-owned to private mining in 1991. Before, miners used to stand at university gates asking for handouts; today, they are in a better position,” he commented.
In this sense, he added that economic growth is a necessary condition, but not sufficient to generate and sustain development, which can be seen in how at odds the trends in economic growth and HDIs values are due to the inefficiency of the government at its three levels.
“We can see that there are mining regions with low or medium HDI values, and there are tourist regions with high or medium HDI values. This raises an issue that has nothing to do with income or economic growth, but with management of resources by the State,” stated Fausto Salinas at Rumbo a PERUMIN – Southeastern Peru Edition.
Institutional conflicts undermine social development
On the other hand, Fausto Salinas claimed that the existing conflicts within the State institutions, added to the levels of corruption, harm the distribution of resources generated by the mining activity to the districts, provinces, and regions, thus slowing down their social and economic development.
He also mentioned that it is no coincidence that the most dynamic regions are those linked to mining and tourism, since they show higher economic growth than those that do not have those activities, as poor management and corrupted officials affect these.
“With 30 years of leftist governments and 4 regional presidents in prison, there is no way Cusco can manage to translate its economic growth—the income collected from mining and the substantial contribution coming from Camisea as fiscal redistribution—into development opportunities for the region,” said Fausto Salinas.
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