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Subject

The influence of the business sector.

Significance

President Martin Vizcarra’s government’s qualified decision to give the green light to Tia Maria, a large copper project, is a response to strong lobbying by Peru’s business community. However, it risks inflaming regional protests by affected farmers in the southern region of Arequipa. This long-running dispute has become emblematic of conflicting development strategies, particularly given Peru’s failure in recent years to diversify its economy away from extractive industries.

Impacts

Southern Peru will need to change its corporate social responsibility policies if it is to regain public trust.

A minority in the Tambo valley will continue to rally opposition to the project.

The left will seek to reassert itself using defence of the environment as a political banner.

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