In recent days, the political crisis has been joined by the economic and social crisis generated by the rise in fuels , which has led to a substantial increase in several products in the basic family basket such as chicken and sugar. In addition, the road blockade caused vegetables such as carrots and peas to multiply their price. Although this weekend the cost of vegetables fell, the situation seems to be far from being resolved, as other demands continue to appear from informal transport sectors calling for the elimination of watchdogs such as the ATU and the Sutran. Faced with this, President Pedro Castillo seems to have no solutions and continues to avoid talking with the press or talking directly with the unions organizing the protests.
Economic analyst Alejandro Indacochea told RPP that, these days, “the perfect storm” has been generated due to three factors: the pandemic, the political crisis and the Russian invasion of Ukraine. He indicated that the government does not understand the problem and therefore cannot solve it.
GOVERNMENT MISTAKES
The university professor also pointed out some mistakes that the Executive Branch would have made which would have contributed to aggravating the crisis: “Blame the right wing or monopolies, accusing people for distorting the message; pointing out that with the in operation of the Talara refinery is going to lower the price of fuel and the last thing was when the prime minister pointed out that we should not eat chicken but rather eat fish.”
“All these facts show me that they (the government) don’t understand the world and no one can solve a problem they don’t understand,” he said.
WILL THE REDUCTION OF ISC AND IGV WORK?
Alejandro Indacochea said that eliminating the General Sales Tax (IGV) and Selective Consumption Tax (ISC) from fuel and other basic necessities was the only option.
“Obviously it’s a palliative. Let’s hope that the subsidies are temporary because there is an effect on the tax fund. They have to be very targeted subsidies,” he said.
He explained that the problem in lowering IGV and CSI is that this reduction reaches the final consumer and is not absorbed into the supply chain.
MINISTER OF ECONOMY ISOLATED
On the other hand, he considered that the Minister of Economy, Oscar Graham, is a competent professional but that he is currently isolated with very strong pressure. Along these lines, he said that the increase in the monthly minimum wage from 930 to 1025 soles is irrelevant, because most workers who receive the minimum wage work in small companies, which could go bankrupt before investing more in the payment of their employees.
Indacochea said that an emergency program is needed, to provide food baskets to the poorest, and subsidies must reach those who are truly in emergency.
PEDRO CASTILLO
Despite last week’s protests in Huancayo, President Castillo did not go to dialogue directly with the protesters, although his ministers achieved a five-day truce as fuel prices were reduced by the elimination of IGV and ISC.
This Monday, the head of state participated in the opening ceremony of the new environments of the Prite Canto Grande educational institution, in the district of San Juan de Lurigancho, but did not testify to the press or directly refer to the stoppages and blockades in the country.
The president of the republic, Pedro Castillo, called on citizens to let their government work.
“This is how we want to see the country, walking steadily, without any stumbling blocks, with confidence . For many years this country has been led by great political experts, with great authorities, I ask the country, the Peruvians, to let us work,” Castillo said.
“Of the 200 years of republican life, give a teacher the opportunity for five years of 200 years that this country is entitled to give priority to our most vulnerable families,” he added, appealing to the usual speech.
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