Government

While the situation of extreme tension has led him to take such determination contrary to its objectives on economic matters, I believe that it is noteworthy that it prioritised the social peace in the country. The conflict in the Peruvian Northwest is a wake up call that well can be replicated in the future between the lower social layers, which, when the economy was growing strongly, did not receive great benefit from this, and now that he is watching a strong slowdown, are affected first. Inequality in the appropriation of the benefits of economic growth has been highlighted by the international organization Oxfam (promotion of development and fight against hunger), which says in a report on the subject, the following: in the past eight years, the economy of the Peru grew at accelerated rates, but wages stagnated while the profits of companies operating in the country grew by above the profits of the 500 largest companies in the world. It is true that during the management of Alan Garcia an important poverty reduction has been achieved, but it is consequence mainly of the improvement in the situation of the Peruvian economy. The Government must make greater efforts to insert to the improvement in the social situation within the economic strategy. The increase of welfare of the lower segments of the population, involves multiple benefits beyond greater distributive equity. It implies an improvement in demand for goods and services and a higher popularity of the Government. The improvement in the distribution of income and the situation of the lower segments of the population is still pending matters in economic policy of Alan Garcia, in an economy that shows strong and generates confidence at the international level. Social improvement implies a greater attractiveness for investors who see it as a greater social stability and domestic a demand more attractive.