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Viewing cable 06LIMA4722, CAJAMARACA AND REGIONAL UNREST

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Reference ID Created Released Classification Origin
06LIMA4722 2006-12-19 15:53 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Lima
VZCZCXYZ0000
RR RUEHWEB

DE RUEHPE #4722 3531553
ZNR UUUUU ZZH
R 191553Z DEC 06
FM AMEMBASSY LIMA
TO RUEHC/SECSTATE WASHDC 3410
INFO RUEHAC/AMEMBASSY ASUNCION 1570
RUEHBO/AMEMBASSY BOGOTA 4188
RUEHBR/AMEMBASSY BRASILIA 7131
RUEHBU/AMEMBASSY BUENOS AIRES 2706
RUEHCV/AMEMBASSY CARACAS 0012
RUEHLP/AMEMBASSY LA PAZ DEC QUITO 0888
RUEHSG/AMEMBASSY SANTIAGO 1004
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUMIAAA/CDR USCINCSO MIAMI FL
UNCLAS LIMA 004722 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PINR PHUM PE
SUBJECT: CAJAMARACA AND REGIONAL UNREST 
 
REF: LIMA 4519 
 
1.  (SBU) Summary: Cajamarca may be emblematic of the broader 
regional challenges facing the Garcia administration, namely 
persistent poverty and rising frustration with inadequate 
public services that fuel antipathy towards all levels of 
government.  Social discontent in Cajamarca has at times 
metastasized into conflict with the region's largest 
employer, Yanacocha mining company.  Because Cajamarca has 
long been a ruling APRA party stronghold, it raises questions 
about the Garcia government's plan to decentralize both 
authority and blame for problems to regions and 
municipalities.  End Summary 
 
2.  (SBU) Persistent poverty has characterized life for a 
significant majority of Cajamarca's residents.  Located on 
the country's northern border far away from the marginalized 
southern regions that are the focus of the government's 
poverty alleviation efforts, Cajamarca ranked as one of the 
poorest regions in Peru in 1993 -- 22nd out of 25 
departments.  Thirteen years later, Cajamarca ranks 23rd. 
Regional officials told poloff during a recent visit that 40 
percent of children in the region are malnourished, and 60 
percent of homes lack electricity.  They also described a 
simmering frustration with the status quo, where government 
promises -- at the national, regional and municipal levels -- 
come and go with each election but the situation fails to 
improve.  In that sense, Cajamarca is emblematic of the 
broader regional challenges confronting the Garcia 
administration. 
 
3.  (SBU) Following repeated and vain petitions to the 
government, local populations have found a ripe target for 
their anger in Cajamarca's mining sector.  Most recently, in 
August local residents, frustrated by a lack of roads and 
clean water, blockaded the activities of Yanacocha mining 
company (which is operated by Newmont, a U.S. firm).  One 
leader of the protest, Father Marco Antonio Arana, told 
poloff that direct action against Yanacocha was justified 
because local government had proved unresponsive to popular 
demands.  Communities have also been angered by the lack of 
access to the mining "canon," funds reserved from mining 
taxes and earmarked for local infrastructure projects (but 
controlled by the central government).  The protest ended 
when Yanacocha promised to build a road linking local towns 
and a number of water filtration stations.  (Comment: In that 
sense, the mining company has shouldered blame for the public 
sector's failures, and is pressed to provide the kinds of 
public services that governments normally dispense.  End 
Comment.) 
 
4.  (SBU) Problems in Cajamarca raise questions about the 
Garcia government's plan to decentralize responsibility and 
blame for problems on to regional and local governments.  In 
a November speech criticizing the failures of regional 
governments, President Garcia cited Cajamarca as an example 
of bad government, noting that local authorities had ignored 
pressing needs like child malnutrition.  Ironically, 
Cajamarca has long been a ruling APRA-party stronghold: APRA 
candidates had won mayoral elections four times in a row, and 
also held the regional presidency -- until now.  In the 
November 19 municipal elections, the APRA incumbent lost the 
regional presidency, and the mayor was re-elected by a 
razor-thin margin.  In that sense, Garcia's strong words 
indirectly targeted his own party, and suggested that in the 
long run the central government will have difficulty esaping 
blame for public sector failures at the local level. 
 
5.  (SBU) Comment: President Garcia may succeed in the short 
term in shifting anger for ineffective government from the 
national to local level, and in securing the support of the 
private sector through "voluntary contributions" to the 
communities in which they operate.  But in Cajamarca as in 
other poor regions of Peru, the government, at all levels, 
will have to correct its own failures -- and begin providing 
the basic services that populations increasingly demand -- if 
it hopes to avert social conflict in the future.  End Comment. 
STRUBLE