Peru, South America
Business
Economic Overview:
Peru's economy reflects its varied geography - an arid coastal region, the Andes further inland, and tropical lands bordering Colombia and Brazil. Abundant mineral resources are found in the mountainous areas, and Peru's coastal waters provide excellent fishing grounds. The Peruvian economy grew by more than 4% per year during the period 2002-06, with a stable exchange rate and low inflation. Growth jumped to 9% per year in 2007 and 2008, driven by higher world prices for minerals and metals and the government's aggressive trade liberalization strategies. Peru's rapid expansion has helped to reduce the national poverty rate by about 15% since 2002, though underemployment and inflation remain high. Despite Peru's strong macroeconomic performance, overdependence on minerals and metals subjects the economy to fluctuations in world prices, and poor infrastructure precludes the spread of growth to Peru's non-coastal areas.
In the Andes, a Toxic Site Also Provides a Livelihood
By SIMON ROMERO / The New York Times
La Oroya has been called one of the world's 10 most polluted places by the Blacksmith Institute, a nonprofit group that studies toxic sites. But for several months, the Peruvian smelting company in Mr. Rennert’s empire has claimed that low metals prices prevented it from completing a timely cleanup to lower the emissions that have given this town such an ignoble distinction.
The tensions here over the lead emissions and the smelter's financial meltdown is precisely the kind of dire mix of foreign investment and environmental contamination feared by indigenous groups elsewhere in Peru, particularly in the country's Amazon basin, where protests over similar issues left dozens dead this month.
Residents of La Oroya, with a population of 35,000, talk about the lead in their blood like people elsewhere discuss the weather. Ninety-seven percent of children under the age of 6 had lead levels that would be considered toxic by the Centers for Disease Control and Prevention in the United States, according to a 2005 study by scientists from Saint Louis University. But while some here seethe against Mr. Rennert and the company, Doe Run Peru, others defend them for providing work, making for a sharply divided town. >>> Go to Full Story >>>