“If the price of oil fell from 120 dollars to 100 dollars per barrel, that should immediately translate into the reduction of fuel prices in the domestic market, as recommended by Pedro Francke, former Minister of Economy and Finance, and professor at the Pontifical Catholic University of Peru.
During the interview granted to LR+ Economía, the economic program of the newspaper La República, The former minister stressed that the government must be very proactive in the urgent decision to reduce fuel prices. You can see the full interview: HERE.
But he also considered that the announced bonus of S / 300 should have greater coverage with respect to the beneficiaries who are already focused on social programs, because in Peru there are more than 13 to 14 million people in poverty and Peruvians who earn S / 1,000 and S/ 1,500 that also require economic support to face the increase in food and fuel prices.
These were the measures that Pedro Francke said that the government must take into consideration to overcome the bad times in the country’s economy, also due to the international crisis.
1. Accelerate decentralized public investment. “There are so many works that are needed and public investment did not advance at the pace that was left (when he was head of the sector), where it grew impressively, with a record, and that this year is a bit slow.”
two. Dialogue with the private sector. With the critical sectors to favor and promote private investment and private business. “Tourism is a key sector that needs more support. In addition, new financing schemes for small businesses, for tourism and other sectors, and put more resources and better financial conditions so that companies can get ahead.
3. A support package for agriculture, which must include fertilizers quickly, but also the promotion of small and large irrigation in the mountains. “There are large projects on the coast that must go ahead and a development project to provide better technological conditions to support productivity with agroecology in the mountains and jungle.”
Four. economic transfers. “The bonus is important. It has to be delivered widely. The idea of only starting with those who are already in social programs, which is a little more than 1 million people, when in Peru there are more than 13 or 14 million people in a vulnerable situation, is not enough. It is necessary to give a broad bonus that reaches a greater number of families because the inflationary blow has been very broad. Workers who earn 1,000 or 1,500 soles are also affected.
5. Secure food. Strengthen food support through community pots and social programs such as Qali Warma, and others such as school feeding to ensure that food, which is a critical issue, hard hit by inflation, can move forward.
6. Urgent reduction in fuel prices. “The government must be very proactive in ensuring that at times like the current one, when the price of oil fell in the international market from US$120 to US$100, it quickly translates into the sale price in the domestic market. The government must be very proactive in that regard.”
You can see the full interview: HERE.