Recent Conflicts in the Amazon Region and the Search for a Long-term

Resolution

Presented by

Luis M. ValdiviesoAmbassador of Peru

June 2009

Agenda• Government Development Objectives

• Overview of the Situation in the Amazon Region

• Legal Framework for Sustainable Development

• Events up to the Conflict in Bagua, Amazonas

• Actions taken by the Government and Current State of Affairs

Government Development Objectivesfor the Amazon Region

Sustainable development of the region with due consideration to:– The cultural heritage of the native population– The preservation of the Amazon as a key factor to

counter climate changeContinue to reduce steadily the levels of poverty and

extreme poverty in the regionPromoting further human development and social inclusion

Overview of the Situation in the Amazon Region

The Amazon Region in the National Context

SURFACE: 61%778,449 Km2

SURFACE: 61%778,449 Km2

POPULATION: 13%POPULATION: 13%

GDP: 5%GDP: 5%

TERRITORIO NACIONAL POR REGION

Costa13%

Sierra26% Selva

61%

POBLACIÓN NACIONAL POR REGION

Costa57%

Sierra32%

Selva13%

PRODUCCIÓN NACIONAL POR REGION

Costa75%

Sierra19%

Selva6%

Loreto47%

Amazonas5%

San Martín7%

Ucayali13%

Madre de Dios11%

Nota: Superficie total del Territorio Nacional: 1,285,216 Km2

FUENTE: INEI 2007

Population By Region: 1993 and 2007

Protected Areas, Native Communities, and Territorial Reserves for Isolated Natives.

Distribution of the Amazon Territory

Otros 35%

Comunidades Nativas, Campesinas y Otros

17%

Bosques de Producción Permanente

24% * Sistema Nacional de

Areas Protegidas24%

Fuente: DGFF del MA

108,326

136,039

168,319

212,755 212,511222,000

0

25,000

50,000

75,000

100,000

125,000

150,000

175,000

200,000

225,000

250,000

2003 2004 2005 2006 2007 2008

Forestry Exports2003 – 2008

(Thousands of US Dollars)

Fuente: ADEX, Boletín del Sector Maderas y sus Manufacturas 2008

OIL & GAS SECTOROIL - Thousands Barrels per Day /1

GAS – Million Cubic Feet per Day /1

/1 Source: PERUPETRO, promoting company

Poverty Incidence by Region 2004 – 2008(Percentage)

Extreme Poverty by Region 2004 – 2008Percentage

Poverty Reduction in 2008(in percentage points)

Main Challenges to the Preservation of the Amazon Forest

• llegal Logging– Change the use of the land (for survival, for

illegal crops)– For commercial purposes (selective high

value woods)• Illegal Mining (pollution of rivers with

adverse impact on agricultural activities)• Pollution from legal activities (mining and

hydrocarbon extractive activities

DEFORESTATION: Main Culprits

Fuente : INRENA

87%

8%5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100% Agropecuario

EnergíaForestal

IMPACTO DE LA TALA DEFORESTADORA

DEFORESTACION MAP

Mining Sector Environmental Impact

Legal Framework for Sustainable Development

• 7/14/95 Law 26505: Private Investment in Native Communities’ land• 7/16/08 Law 27308: Forestry and Wildlife Law• 3/13/08 LD 994: Private Investment in Irrigation: expansion of arable land• 5/13/08 LD 997: Empowerment of Ministry of Agriculture• 5/14/08 LD 1013: Creation of Ministry of Environment• 5/20/08 LD 1015: Standardization of procedures for improving agricultural production and

competitiveness in the Sierra and Amazon Regions• 6/26/08 LD 1039: Modification of LD1013 to expand functions of ME• 6/26/08 LD 1042: Amendment of law regulating mining sector environmental liabilities• 6/26/08 LD 1048: Further environmental regulations on mining for warehousing concentrates• 6/27/08 LD 1054: Consolidation of General Law on Mining• 6/27/08 LD 1055: Amendments to the General Law on Environment• 6/28/08 LD 1064: New regime for enhancing the use of land for agricultural purposes• 6/28/08 LD 1073: Amendment of Law 26505 to enhance the native communities’ ability to

decide on the regularization of land property for use by third parties• 6/28/08 DL 1078: Amendment to Law 27446 concerning the system for evaluating

environmental impacts• 6/28/08 DL 1079: Further measures to guarantee the preservation of protected natural areas• 6/28/08 DL 1081: Creation of the National System for Hydro resources.• 6/28/08: DL 1085: Creation of the Supervisory Body for Forestry resources and the titling of

rural land property.• 6/28/08 DL 1090: New Forestry and Wildlife replacing Law 27308• 9/21/08 Law 29361 Repeal of LDs 1015 and 1073 restoring Articles 10 and 11 of Law 29261

on Private Investment for the development of land, including native communities’ lands.• 1/14/09 Law 29317: Amendments to LD 1090 allowing changes in the uses of land,

forbidding titling or possession certificates of protected lands, development of a forestry management plan, a conditional compensation regime, and incentives for the rehabilitation of degraded or deforested lands

Forestry Concessions

2001 15 14 29 02002 16 13 29 02003 16 11 27 -22004 17 14 31 42005 17 28 45 142006 18 42 60 152007 19 65 84 242008 19 84 103 19

TOTAL NEW CONTRACTSYEAR OPERATION EXPLORATION

Oil Contracts

* Estimated Amounts

OIL CONTRACTS

Events up to the Conflict in Bagua, Amazonas (I)

• Native Communities challenged first the constitutionality LD 1090

• Their concerns were channeled within the framework of the law; i.e., through the Congressional Committees.

• Subsequently, they challenged the amendment of LD 1090, i.e. Law 29317, notwithstanding their participation in the amendment process

• Between Jan. and June 5, 2009, natives communities used two channels of communication: (i) Congressional committees and (ii) direct dialogue with the Executive Branch

• Prospects in Congress were not very promising until very late when Constitutional Committee of Congress approved the Minority report of unconstitutionality but its discussion by thePlenary was postponed to permit direct dialog

Events up to the Conflict in Bagua, Amazonas (II)

• The dialogue with Executive did not prosper either. There were several attempts to open the dialogue.

• In parallel, the native communities’ positions started to radicalize and started taking over highways and disrupting productive activities

• In view of the increased disruptions, the government empowered by the Constitution declared the state of emergency in the regions of conflict.

• It was only on May 26 that a formal dialogue could be established after over 50 days of strikes.

• AIDESEP led by its coordinator Mr. Pizango participated in the discussions. However, after two sessions, Mr. Pizango left the table and called for further radicalization, including a request for full autonomy and insurgency.

• On June 5, the Government calls on the Police to restore law and order.

• In the event, 24 policemen and 10 civilians died, with most of the the policemen being killed in cold blood.

Government’s Assessment of the Events and Response (I)

• We acknowledge that the DL 1090 was not consulted with the principals of the native communities because it was believed that it was not against but in favor of them.

• It is now clear that the interlocutors for the dialogue were notrepresentative and had a hidden political agenda not consistent with the concerns of the native communities.

• There was widespread and concerted misinformation and political interference both domestic (from the nationalist party) and external (particularly from President E. Morales and some ministers from Bolivia and Venezuela) who called for radical measures to destroy the Peruvian development model for the Amazon, to weaken the democracy, and ultimately to bring down the government

• There was also a miscalculation in believing that there were only natives protesting and not criminal elements ready to create chaos and ignite an armed confrontation

Government’s Assessment of the Events and Response (II)

In view of the above, the Government took the following actions:• Asked the public law institutions, the Ombudsperson, and the Red

Cross to verify the number of casualties, injured, and people temporarily and voluntarily displaced from their communities.

• Invited the United Nations Special Rapporteur on the situation of human rights and fundamental freedoms of indigenous people to evaluate the situation

• Set up an expanded Working Group to discuss an integral and sustainable development alternative for the Amazon region that takes int account the views of all the population of the area, including the natives.

• Postponed the implementation of LD 1090 and Law 29317 and restore the Law 26505 and 27308, with the concurrence of all parties supporting the development model, except for the Nationalist party.

• Submitted to Congress a request for the abolishment of the legalnorms under question which is currently debated by Congress.

Native Communities’ Response

• Mr. Pizango sought and obtained political asylum by the Nicaraguan Embassy and subsequently obtained free passage to Nicaragua. He refused to be interrogated by the Special Prosecutor on charges of promoting rebellion, among others

• Following the suspension of effectiveness of LD 1090 Law 29317,the Prime Minister agreed with several elected representatives of Native communities to participate in the Working Group and to help restore public order and to invite AIDESEP to join. In addition, there was agreement that the police acted responsibly.

• Following this agreement, AIDESEP has called on its members to help restoring order.

Final Remarks

• Regrets the loss of lives• Stands ready to prepare new legislation to protect and

promote a sustainable development of the Amazon region for the benefit of all Peruvians

• Will take necessary actions to seek an appropriate reconciliation of the various interests of all the civil society groups involved

• Believe it is important that this process is undertaken within the frame of the law, with due respect to democratic principles, and in a peaceful manner.