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ANCASH IN THE CONTEXT OF THE FINANCIAL CRISIS INTERNATIONAL

By: Richard Moreno Bustos
November 2008

Ancash Although for many current international economic crisis may seem alien to us, it is important to start addressing the issue very seriously, always putting on the table some proposals, because the truth is that we do will affect much!
The international price of minerals has started, since last July, a sharp fall, which will be reflected in a significant reduction of the main resources that had been delivering as Canon Minero Mining Utilities Remnant, and that increased the Mining Program of Solidarity with the People (also known as voluntary contribution Antamina, Barrick and Louise).
Calculating the amount of resources generated from mining activity in 2008 are in the hands of the Regional Government, local governments, universities, FODOEMPLEO and mining companies (social investment), Ancash has about 4 billion soles ( S / 3.996 '000 00 million to be exact).
Thus, the current unfavorable international context, should lead us to reflect, discuss and make serious decisions about the direction that the funds should be exposed, especially in a time where you need lineaments of departmental policy.
Also key will define our position on a possible re-concentration of funds from central government. Fact already been observed since last September with the budget cut in regular resources for social programs.
The issue is that urgent to have the leadership of a regional government, which as territorial authority, be able to see the use of these funds as a "whole", to address better the investment, whether by articulating areas with roads, enhancing agricultural activities, improving the quality of education and health services, etc. Our proposal to install a Central Planning Department seems to have a handle at the moment, as well as the idea put forward to build a multi-year investment program that includes projects that we believe are most important.
In other words, think only spend what is the regional government (more than one billion for investments in their accounts), equal to inertial behave expense and not a profile of investment management and achieve that leverages co-financing commitments projects with municipalities, universities, the "voluntary contributions" 1, NGOs etc. To this we must add the need for an order, on specific policies, investments currently undertaken by public bodies and private institutions referred to in the scope of our department.
Therefore, there is unfinished business on the agenda of social representatives, mining companies and authorities (local and regional) to establish clear strategies and actions in a department where decentralization has been based mainly on the huge tax revenues from the significant increase in metal prices.
1 The Antamina Mining Company operates a mining fund of S /. 381 million soles.