Peru: Inequality is worse than poverty

Humala agrees with UNDP report that basic problem is inequality

Lima, November 3 2011 (EFE). – Peruvian president Ollanta Humala declared today that the fundamental problem in his country is inequality rather than poverty, as per the findings of report by the United Nations Development Programme presented in Lima.

“There are poorer regions in the world [than Latin America], but we take first place in inequality,” said Humala (pictured, centre) during the regional launch of the Human Development 2011 report 'Sustainability and Equity: A better future for all'.

If, on the one hand, Peru is considered a country of high human development, the inequality and deficiencies observed in education and income show the behaviour of a medium- or low-human development country, the UNDP report pointed out.

Peru is in 80^th place in a ranking of 187 countries, with a human development index of 0.725, and is considered one of the high-human development countries (on a scale divided into very high, high, medium and low human development).

Nevertheless, adjusting the index by the inequality factor, a 23.2 per cent drop in value is seen, lowering the country's rating to medium human development.

According to official figures, poverty has reduced to 31 per cent in the last few years, while extreme poverty (which does not pay for a nominal standard 'basket' of foodstuffs) affects 9 per cent of the population.

The head of state said that for this reason he had created the Ministry of Social Development to transform social programmes into national state policies.

Humala also mentioned that the absence of the state in the country's interior had encouraged illegal economies, giving the example of the Apurímac and Ene River Valley (VRAE) region where drug trafficking, illegal logging and the remnants of subversion and corruption were present.

“We need to combat corruption and the unhealthy practices of clieneltism which have done for social programmes,” said the leader.

Another variable measured by the report was 'multidimensional poverty', which examines the deficiencies in health, education and standards of living, as well as the effects of environmental degradation.

According to this concept, 19.9 per cent of Peru's population are found in conditions of multidimensional poverty, and it is the country with the second-highest population in this condition, after Bolivia, whose index is 20.5 per cent.

In Peru, 14 per cent of the 'multidimensional poor' have no access to drinking water, 19 per cent to improved sanitation and 19 per cent to modern fuels.

Humala said that his country needed a coherent environmental policy with development, and trusted that he would be able to say in five years, when his term of office ends, “job done”.

In turn, UNDP Regional Director Heraldo Muñoz told the Efe news agency that “Peru is on the right path,” expressing his confidence that the country would improve its development index in the next five years.

Muñoz, who presented the report to Humala during the ceremony, added that Latin America and the Caribbean were “better in education and health” compared to other regions, but were also “further behind in decent employment and equity.”

In Peru, one in six poor citizens is covered by an anti-poverty programme, but that was not enough because inequality had to be reduced, said Muñoz.

Translation by James Tweedie

From: http://www.google.com/hostednews/epa/article/ALeqM5hVl4RNk4sAA6m8Bc9mfG8033_TOw?docId=1646212

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