Minimum wage, fight against insecurity and more infrastructure: the economic agenda of the message to the nation

We are concerned about the increase in the minimum wage

Roberto De La Tore, President of the Lima Chamber of Commerce

There will be no possible reactivation if the safety of workers, employers and their families is not guaranteed. Nor if we have corruption at all levels of the State. It is urgent to increase public and private investment. The acceleration of public investment at the central, regional and municipal government level in order to improve infrastructure. At the level of private investment, we are concerned about the possible increase in the minimum wage, this should be analyzed technically in the CNT, a space where workers, employers and the State participate. The formula must be in line with the growth of productivity, which has not happened in recent years. We are concerned about the fiscal deficit. Last year the goal was not met and this year the “ceilings” have just been changed. This creates the perception that the MEF is not being disciplined to reach the established goal. There are fundamental issues that we hope the president will announce, such as the SEZs, infrastructure development, and reestablishing the promotion of agricultural exports.

Minimum wage increases to S/1,500 today

Gustavo Minaya, Deputy Secretary General of the CGTP

For the CGTP it is essential that the increase of the RMV to S/1,500 be arranged todaythis is because the basic family basket amounts to S/2,100 according to INEI and BCRP. But the minimum wage is S/1,025, less than 50% of this basket for 5 people is subsistence and is not enough for anything additional. In addition, we propose that it be progressive and that in 5 years it converges to S/2,100. We must take into account that this increase means more money for poor workers, helps to boost micro and small businesses, and injects cash into the economy. At the political level there is resistance, we know that businessmen will defend their interests, but they do so because minimum wages in Peru are concentrated in the agro-industry, textile industry, manufacturing, among others, despite the fact that they have the capacity to invest in their workers. It should not affect the mypes either, because according to the MTPE itself the problem for this link is not labor costs, but the informalitylack of access to credit and municipal obstacles. Yes, it is possible.

Financing small business

Daniel Hermoza, Director of United SMEs of Peru

The president has two years left in her government to refloat the companies. Although the economic indicators are interesting at present, it does not depend much on the Government. The silence of this Government since the Rolex problem has helped a lot. The possibility of improving the State services for the companies must be evaluated. SMEs via restructuring of the Ministry of Production. Peru is very disciplined in paying its external debt, but internally there are billions of soles owed at all levels of government to all companies in general. The other issue is market protection: Although we are coming out of a recession, it is tragic to think that clothing smuggling is affecting the entire market, especially the regions in the south of the country. Companies cannot consolidate themselves with this unfair competition. Another point is financing. More creative formulas are needed to serve sectors such as, for example, the winery, which has been hit hard by the crisis and has lost the ability to replenish its products.

An agenda from all fronts

Felipe James, President of the National Society of Industries

Peru is at a crucial moment in its history and it is necessary to give clear signals to ensure stability. The economy must grow by more than 4% starting next year, and to achieve this, several measures are urgently needed: economic zones that encourage foreign industries, not just from China, with a 0% IR incentive for 8 or 10 years; a shock of investments in infrastructure (we have spoken with various ministers and there is a plan to build a city north of Chancay); an autonomous authority that centralizes the development of Chancay in an orderly manner; a new law for agricultural promotion to take advantage of these almost 200,000 hectares that will be included; regulating pending laws in the MEF, such as the forestry and cabotage laws; reactivating purchases for SMEs; resolving the problem of fishing by Chinese boats in the 200 miles; Citizen security with flagrancy courts and an intelligence team to capture criminal leaders; and a formalization and administrative simplification shock to go from four to a single regime.

Integrating small-scale agriculture

Gabriel Amaro, President of the Association of Agricultural Producers Guilds of Peru

The Government must express the importance of the Peruvian agricultural sector for the development of the country. In the most concrete case, the promotion of irrigation works, not only the large ones that are being unblocked, such as Majes and Chavimochicbut those that have been lost along the way, such as irrigation in the valleys of Huancavelica and Ica-Pisco, Pisco-Villacurí, both for modern and small-scale agriculture. Another pending issue is the regulatory improvement of the agricultural sector: as a framework we are immersed in a complicated food crisis, where a key sector to help reduce the problem is agriculture, not only primary agriculture, but the entire chain as a whole. A regulation is needed that is in line with a promotional character that provides space for sustainability and competitiveness and that helps accelerate this immense number of productive units to formality. There are opportunities and we are trying to attract investment from other countries such as China, and we have proposed doing the same with the US and Europe.

There is little hope in the message

Anaximadro Rojas, President of the Peruvian Agricultural Convention

There are few expectations and interest in seeing whether this year’s message will offer some hope for improving the serious situation of agriculture in general; hopelessness aggravated by the agenda of the current minister of the sector, an agenda aimed at supporting large agro-exporting agriculture that only represents 3% of our agricultural production, not being the family agriculture an issue that concerns the Executive. We do not trust that they will announce proposals on the shortcomings and problems of small-scale agriculture, especially in the area of ​​financing (only 6% of producers have access to formal credit), titling of plots (only 30% have property titles), technical assistance (only 6.6% receive training), a national seed program (we are last in South America in the use of certified seeds), among other shortcomings. Producers need support and a promotional role to achieve profitable and productive agriculture, which serves as a support for food security and the axis of development.

Due to an infrastructure shock

Julio Pérez Alván, President of the Association of Exporters

The export sector needs infrastructure. To get products out, access roads are needed that connect the coastal valleys with the ports, otherwise it will be very difficult. Also the law on special economic zones (ZEE), as well as a new law promoting inclusive agriculture, which we are also waiting for. The regulation of many laws is pending, such as the one on the textile sector months ago. These measures go directly to generating more work and income for the country. It is not all about having good will, but about management and level of execution. We are between 25% and 30% of what was promised for this year. That is why We have fallen to 63rd out of 67 countries in the competitiveness ranking. I would ask President Boluarte to work especially with the ministries and agencies such as Sunat, OEFA or Sunafil to promote an open environment that helps with permits and licenses, and to consider the unions in the National Council for Citizen Security to end insecurity.

Decent pensions for Peruvians

Luis Luzuriaga, President of the Federation of Fonavistas

We pensioners hope that President Dina Boluarte will comply with the second transitional provision of the Constitution that establishes the progressive increase of pensions since 1993. That has not been happening. There is a progressive increase that has not been taking place and pensions are out of step with the purchasing power of the basic family basket, at least they should be reaching the legal minimum income today of S/1,025 and all other pensions that are behind will rise based on this increase. For their part, the FONAVISTAS hope that the MEF will honor the commitment that has been reached unanimously to reintegrate the update of contributions to S/5,500 million starting in 2024. The only thing that the pension reform has brought is an increase of S/100 in the minimum pensionthe rest remain the same. What will happen to the ONP resources? Who will get them? The private system will be financed, which will not provide decent pensions under the implemented system. We await a response.