David Tuesta: “There is no trust in Congress, the Executive or in subnational governments”

What do Peruvians think of their institutions and who runs them? He Private Council of Competitiveness conducted a study on citizen perception, and whose main input was the national household survey that applied the National Institute of Statistics and Informatics (INEI) 2021 and the first half of 2022. The results are terrifying. The discredit extends to the electoral bodies. In this interview, David Tuesta not only analyzes the results of the Decentralized Governance Index, He also talks about the country’s economic situation, the recession that will inevitably lead to fewer jobs and low consumption in homes. “It’s a movie we haven’t seen yet,” she adds.

– The study reveals the deterioration of trust in most institutions. Has this result been measured in the 24 regions of the country?

There are several factors. Satisfaction with democracy decreased (…) There is no confidence in the Congress, Executive, subnational governments. There is the perception of corruption, widespread; people perceive it as a process, if one wants to continue developing economically one is forced to bribe in certain circumstances. All regions have negative results, except Tacna, Moquegua and Arequipa, What happens with the jousting (of 100% they qualify with 50% and something more) the majority is pulled, barely reaching 43%.

– Does the distrust in the electoral bodies call attention?

Indeed, between 2021 and the second semester of 2022, its acceptance reaches a very low 10%, 90% disapprove or do not issue an opinion. Thus, any election result of an authority will be questioned. In Ayacucho, confidence barely reaches 4% and the best is tumbes, twenty%. Whereas in Latin America, Uruguay, 80% of its population trusts its electoral bodies.

– And regarding the image of the Congress of the Republic, Peru appears as the worst qualified in America, with 11%, in the tail after Haiti (16%)

We are in the last positions at the Latin American level. We fought with some Central Americans. It is an elected congress with a referee that the population questions. Then we have these widespread cases of “looters”, looters, people who do not do their job or produce completely irrelevant laws. In a press outlet, it was published that in the last two years, Congress had published close to 2000 laws, whose relevance was zero. This is what people see.

– What can be done in the face of such meager results, is democracy not working?

The process for electing authorities is a flawed process (the responsibility lies with the parties). The menu that reaches the voter is very bad and they choose between that, the least bad. That is the main problem of our democracy.

– The discredit of democracy is worldwide.

Polarization causes very tight democratic results and that everyone questions and no one feels represented, also, in the Peruvian case, we have a menu problem, which is not so serious in other countries.

– What does it mean to have these institutions with a high level of disrepute, what are the consequences?

Less economic growth and that means less welfare for the population. Public investment in hospitals, sanitation works, are lost among bribes, delays, etc. the gaps cannot be closed. You can have regions very rich in mining canon, but the resources are not used. You have districts like Echarate or San Marcos, where 70% of the budgets are not executed.

– A few days ago, Minister Waldo Mendoza pointed out that Congress legislates for group interests: decapitation of Sunedu, automatic appointment of contracted professors, etc.

That ultimately explains the results of the study. A large part of the measures or changes respond to very personal aspects, of a populist nature, to ensure votes or cover up errors with a gift of money.

The economic situation, from bad to worse

– How do you see the outlook, we are already in a technical recession?

If we look at the performance of the economy in the last 6 months, we have negative results, in addition to the drop in demand indicators, such as non-primary manufacturing that falls in two digits, construction (-2), the calculation of internal demand, which makes the Central Reserve Bank, also negative. Everything poses a context of recession. A fall scenario is taking shape, loss of traction in productive activity.

– How does it affect the ordinary citizen?

Sooner or later it will be reflected in less purchasing power and less employment. These conditions are going to be complicated by a scenario of El Niño phenomenon already announced. The film that will be released in the coming months is worrying.

– And with high inflation?

What is taking time to download?

– With the high price of metals, in previous years, the Peruvian economy was doing better. Not now?

Metals have gone down, but they maintain an expectant level, what would happen if that element that helps you navigate stops. So that’s definitely a risk. Mining grew largely as a result of Quellaveco, but there is a drop in construction and non-primary manufacturing under construction.

– How do we get out of the recession situation?

There will be no quick exit, this fall has been going on for a decade, we are growing less and less. Recovery depends on reforms to improve institutions, the efficiency of the State, the business environment in the market, the functioning of the labor market, clear signs so that companies can grow and not remain small; nobody wants to grow because that means paying more taxes. As long as we delay getting it up and running, we’ll have more problems. I think we’re in serious trouble there.

– Many blame the economic model.

It’s like having a good car, but you have to maintain it to keep it running well. Otherwise it will rust and run less. The successive governments for more than 10 years have forgotten these changes. Reforms to continue growing. So, more than a model issue, it is a politician issue, not choosing well because our own processes are also wrong. That has led us to these circumstances.