FORE VISIT: FOSTERING PUBLIC-PRIVATE PARTNERSHIPS

UNCLAS LIMA 000194 SIPDIS SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PGOV PREL EAID SNAR PINR PE SUBJECT: FORE VISIT: FOSTERING PUBLIC-PRIVATE PARTNERSHIPS IN PERU'S REGIONS REF: LIMA 114 ¶1. (SBU) Summary: Director of US Foreign Assistance Henrietta Fore, during her January 10-11 visit to Peru, underscored the importance of public, private and civil society collaboration to foster development. To this end, Director Fore attended a signing ceremony on January 10th to launch a partnership initiative between USAID and three major mining companies to support a wide range of development activities. On January 11, she traveled to Ayacucho to visit USAID supported projects in support of rural producers, local governments, and civil society. Director Fore also visited a NAS-sponsored police academy that is training hundreds of new police annually as part of the effort to establish security and state presence East of the Andes, thereby enabling development in narco-trafficking zones. (Director Fore's meetings with the Foreign Minister and other cabinet officials are covered septel.) End Summary. Working with the Mining Sector to Promote Development -------------- -------------- ¶2. (SBU) Director Fore attended an event on January 10 to launch public-private partnership initiatives between USAID and three major mining companies -- Barrick, Buenaventura, and Antamina. With these initiatives, the three companies have committed to work with the USG to reduce poverty by promoting sustainable income and employment generating activities in mining regions such as Huancavelica and Ancash. In private comments after the ceremony, company representatives lamented the inability of municipalities to invest the considerable tax revenues gained from mining activities into meaningful local development projects. They also criticized the central government's inability to build needed transportation and other infrastructure. Company representatives hoped that continued collaboration with USAID will help improve the effectiveness of their own social investments, thereby undercutting potential social unrest. Director Fore encouraged the companies to identify additional opportunities for such public-private cooperation on poverty reduction. Collaborative Development in Ayacucho -------------- ¶3. (U) On January 11, Director Fore traveled to the impoverished city of Ayacucho -- the birthplace and epicenter of Shining Path terrorism -- to view USAID and NAS assistance activities as well as infrastructure and training programs. Fore met with a wide range of micro and small business operators that have used USAID development support to link their output with national and international markets. These enterprises now sell a broad array farm products and textiles in Peru's major cities, the US, Europe, and Japan, demonstrating that poor producers can compete internationally and generate employment through trade. ¶4. (SBU) Director Fore also met with Ayacucho's Regional President, Regional Council, and Mayor to discuss local development challenges. All expressed interest in developing the region in consultation with civil society, local mayors (regardless of political affiliation) and the private sector. The officials thanked Fore for US assistance in these efforts, and identified their top priorities as 1) improving health by focusing on malnutrition; 2) making decentralization work by building the capacity of regional and municipal staff; and 3) bolstering growth by exploiting the benefits of the new free trade agreement. ¶5. (SBU) Director Fore met separately with a cross section of civil society actors who confirmed the openness of regional and local governments to consult and collaborate with citizen groups. Civil society representatives also discussed the ongoing threat of the Shining Path, which, while much diminished, has linked up with narco-trafficking operations and continues to exploit impoverished youth in rural areas. Visit to NAS-Supported Police Training Academies -------------- --- ¶6. (U) Director Fore also visited the recently inaugurated NAS-PNP Basic Training Academy - a $10 million USG investment. The academy is recruiting qualified students from local communities to ensure that police officers represent their communities and will remain East of the Andes in counter-narcotics functions for a minimum of three years. With NAS support, this new academy, along with two others East of the Andes, will dramatically increase police presence, with the goal of providing a lawful and secure environment that enables economic development. Director Fore saw recent female academy graduates undergoing specialized intelligence and counter-narcotics training and learned from the students about their strong commitment to free their communities from narco-trafficking and violence. ¶7. (U) Director Fore cleared this message. NEALON