CSOs participation in trade policy processes: lessons from Peru August 7 th, 2008 www.cies.org.pe
1. Context 2. How have we reacted to the context? 3. What have we learned?
Context The middle income paradox in Peru: High and sustained levels of growth. Overall poverty reduction, but persistence in rural areas. High levels of inequality and entrenched social exclusion patterns (access to public services, ethnicity, gender, lagging regions).
Cuadro N 1 Perú: Incidencia de la Pobreza Total, según ámbitos geográficos, 2004-2006 (Porcentaje) Ámbitos geográficos 2004 2005 2006 Total 48,6 48,7 44,5 Área de residencia Urbana 37,1 36,8 31,2 Rural 69,8 70,9 69,3 Regiones naturales Costa 35,1 34,2 28,7 Sierra 64,7 65,6 63,4 Selva 57,7 60,3 56,6 Dominios Costa urbana 37,1 32,2 29,9 Costa rural 51,2 50,0 49,0 Sierra urbana 44,8 44,4 40,2 Sierra rural 75,8 77,3 76,5 Selva urbana 50,4 53,9 49,9 Selva rural 63,8 65,6 62,3 Lima Metropolitana 30,9 32,6 24,2 Fuente: INEI.- Encuesta Nacional de Hogares Anual: 2004-2006.
50.0 Grafico 1 Pobreza por Etnicidad y Ruralidad % Pobreza Extrema 40.0 30.0 20.0 Afroperuano Aymara De la Amazonía Quechua 10.0 Mestizo Blanco 0.0 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 % Pob. Rural
Context of trade policy processes Since 1990s: dynamic trade liberatization process, recently marked by FTA negotiations. Implementation of key FTAs (USA, Canada) and negotiations with Asia/UE are top political priority. High expectations on the role of FTAs in development: democratization of growth, reduction of inequality, etc.
What do we know from research? The relationship between trade policy and economic growth is not clear. The link between trade and development is not direct nor unidimensional. FTAs have differentiated impacts on the agricultural sector and people within it. FTAs will increase exports, but income distribution may be worsened
CSOs engagement in trade policy processes Changing context, actors, narratives and roles: Before US FTA: low demand for wider participation, non-public issue, low media profile. During negotiations: issue-based campaigns, high media profile, space diversification, BUT ideological polarization & social conflict.
Our context: post-fta dilemmas After US FTA: Fragmentation of civil society networks and narrow intra-civil society dialogues only Need for sound policy options to tackle social impacts among the poorest. Raise invisible topics in negotiations: social exclusion (gender, youth, etc).
How have we reacted to the context? Focus on most sensitive area: small rural producers of non-tradable products (e.g. potato), which unlike agroindustry and agro-exporters were excluded and/or poorly represented during the FTA negotiations. Focus on shifting terms of the policy debate: what is going to happen after FTAs target the complementary policy debate, particularly non-trade related policies. Key role of renewed social protection: facilitating access to the market for the poor and responsive to different needs experienced by people (e.g. due to region, crop production).
What are we doing? Research: respond to the demand of information from public sector. Advocacy: multi-stakeholder spaces for engagement and dialogue on substantive issues and give concrete policy recommendations Communications: promote a proactive attitude towards the complementary agenda by working with the media.
What have we learned? Building on existing networks of trust has been essential when approaching policy makers value of policy migrants Constructive engagement is possible in highly politicized contexts if ears and voice are targeted at the same time. Importance of proactively fostering and supporting the media s role as knowledge brokers in specialised topics such as trade.