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NEWS & LETTERS, July 2002 

Mass protests against privatization, broken promises in Peru

Peru’s shoeshine boy-turned-president, the “man of the poor,” Alejandro Toledo, imposed a state of emergency on the southern region of Arequipa on June 16, suspending all constitutional rights. The action was taken on the fourth consecutive day of protests in the city of Arequipa, and a day after two people were killed, one of them a 23-year-old university student shot in the head by the police with a tear gas canister. Several hundred were injured.

The protests were called to stop the sale of Egasa and Egesur, two electrical companies “auctioned off” to the sole bidder Tractebel, a Belgian firm (itself controlled by a French company, Suez) for $167 million on June 14. Peruvians are familiar with the crisis last year in neighboring Bolivia after water rights were sold off to foreigners, and the demise of Argentina’s economy following a decade of privatizations.

Toledo was elected last July because he promised Peru’s poor that these two electrical firms would not be sold. Now he calls his policy “privatization with a human face.”

The current revolt started on June 11–12 when the central province of Pasco struck for 48 hours to protest the sale. An estimated 85% of the population there participated. On June 13, a 24-hour strike took place in four other provinces including Arequipa. Also that day a large solidarity march took place in the capital, Lima.

Arequipa, the country’s second largest city and the location of Egasa and Egesur, has been the center of the rebellion. Marches on June 13 and 14 were originally peaceful. But despite being organized by the city’s mayor, Juan Manuel Guillen (until recently a firm supporter of Toledo), they were tear gassed and attacked by the police. Marchers fought back, destroyed government buildings, and still more people joined: workers, campesinos, students. The state of emergency was declared on June 16 and the revolt spread the following day to the city of Tacna, at the very southern tip of Peru, where several hundred were arrested and businesses were looted during a general strike. Large marches in solidarity with Arequipa took place in Cusco, Iquitos, and other cities, effectively spreading the rebellion throughout the country.

Toledo’s government looked as if it might be heading for collapse. His interior minister resigned and some legislators called for all of his cabinet to step down. Toledo sent a group headed by Arequipa’s Archbishop to work out a compromise, but they arrived on June 18 huddling on the floor of their bus under a hail of rocks thrown by protestors. The next day they were able to work out a deal, “postponing” the privatization, and the same day the state of emergency was lifted.

Toledo seems to have slithered out of this crisis, but only by making an even firmer commitment to further privatizations. He got his cabinet members to stand in front of the media in a big hug, all wrapped in the flag (literally), and said to the country: “We’re firm in our commitment to privatizations because we’re a country open to dialogue.” So with those bizarre words Peru has joined the ranks of the battle against global capital.

—Mitch Weerth

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