Weekly Report - 1 July 2003

Peru's northern regions of Lambayaque, Amazonas and Cajamarca have launched a drive to form the first 'macro-region', to be known as Marañón. The three regional presidents have agreed to apply to the national electoral body, the JNE, for permission to call a referendum on the merger. They argue that by pooling their resources they can better ensure the growth and development of the area.  

This is in line with President Alejandro Toledo's strategy to dilute the power of the opposition-held regional governments. Toledo's enthusiasm for decentralisation was dampened last November when the opposition Partido Aprista Peruano (PAP) won 13 of the 26 regional presidencies, and his own Perú Posible (PP) won only one. He stalled on funding the regions or delineating the formal status of the presidents in the government hierarchy until early April, when they threatened to boycott a meeting with him unless he confronted the issues (WR-03-15).  

Peru's decentralisation committee (CND), presided over by legislator Walter Alejos, has advocated the formation of nine macro-regions, including Marañón. This is similar to an initiative launched in Colombia in April, where the Uribe administration encouraged departments to come together to form 'regions', establishing their own 'regional parliaments' (WR-03-15).  

Peru's finance minister, Javier Silva Ruete, did not await his confirmation by President Toledo (see main story,above) to announce that he would press ahead with his controversial tax proposals in a bid to balance the budget. His first attempt was thwarted at committee stage in congress (WR-03-24).  

Silva Ruete wants to raise NS752m (US$216m) to cover outlays not foreseen when the budget was approved last year. The figure includes NS192m (US$60m) to finance a NS100 (US$29) monthly salary increase pledged to teachers to end their recent strike (WR-03-22).  

The umbrella private-sector association Confiep has urged legislators to stand firm in rejecting the tax on telephone calls.