Currently, social conflicts in the Peru add up to 209, becoming the largest number since February 2017, according to a report by the Ombudsman. Of these, 160 are active and 49 latent; Likewise, four new conflicts arose, of a communal, national, local and socio-environmental type, according to this report.
For Wilfredo Murillo, lawyer and partner in Peru, of the consulting firm Gericó Associates, these conflicts mean that foreign investment does not advance, and sectors such as mining paralyze their activities.
“These social conflicts will reduce the value of mining exports by US $650 million in 2022, according to Apoyo Consultores estimates, which would mean that the State will stop receiving US $280 million, according to the National Society of Mining, Oil and Energy ( SNMPE).
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In this scenario, it is important to maintain private investment in the local market so as not to let our Gross Domestic Product (GDP) go down”, highlights the specialist.
It should be noted that mining investments in Peru, which totaled 60,000 million dollars in the last ten years, are elusive in the near future due to social conflicts, this has generated that the mining attractiveness of Peru is at its worst level, according to the latest Fraser Institute Annual Survey of Mining Companies.
Precisely with the aim of highlighting the importance of foreign investment, on July 7th the XIII edition of the Latin American Legal Forumor, space in which business and investment issues will be discussed. In this sense, the specialist makes known some recommendations that will help maintain the investment in a context of crisis:
- Cope with any perception of uncertainty: Although the economic conditions in Peru are stable, a company must present a report indicating what the probable risks are and how it would successfully face them in its financial operations. To manage all these aspects, it is necessary to know the legal aspects regarding commercial agreements, international corporate finance, accounting and budgets, among others.
- Offer sustainable solutions. Urgent action is needed to ensure a suitable investment climate and provide sustainable and timely solutions to social conflicts. If these objectives are not achieved, not only is the current period of high prices wasted, but the depletion of resources would put at risk one of the activities that contribute the most to the Peruvian economy.
- provide guarantees. In any type of investment, guarantees are key to retaining and expanding long-term flows. For this, it is important to explain and grant legal protections that are included in the investment process.
- Demonstrate the positive impact on the economic development of the country. It is necessary for citizens to have real knowledge about private investment, since on many occasions, the lack of knowledge of the subject generates unfounded protests.
