High and volatile food prices are one of the biggest political issues of 2011. The pressure points map can be embedded directly into any website to give audiences an easy way to raise their voice and take action on the food price crisis. The tool is part of Oxfam’s global GROW campaign to fix the broken food system.

“The poorest people from Kansas to Yemen are suffering the impacts of high and volatile food prices,” said Raymond C. Offenheiser, President of Oxfam America. “Food price volatility has pushed tens of millions of people into poverty and contributed to violence and instability that is dangerous for global security and costly to American taxpayers. Meanwhile Congress has its head in the sand hoping for it all to go away.”

Food prices have hovered near an all time peak since late 2010 sending tens of millions of people into poverty. After decades of steady progress in the fight against hunger, the number of people without enough to eat is again rising and could soon again top one billion. Leaders from the US and other G-20 nations have delivered little more than band-aid solutions giving little hope to struggling communities.

The map displays countries that are highly vulnerable to price spikes, have seen price spikes contribute to violence or unrest, or have suffered extreme weather events that have contributed to price hikes. Some examples of the impacts the map reveals include:

• Yemen: One-third of the population—7.2 million people—suffers from acute hunger. In the capital city, imported wheat flour prices were 117% higher in May of 2011 than the previous year contributing to unrest in the country.
• Tanzania: Despite a strong economic performance, more than half the population lives in extreme poverty and is vulnerable to increasing food prices.
• Mozambique: In 2010, after record harvests, Mozambique was still slated to import almost a quarter of its food. Food prices are volatile because of both domestic production and import dependence.
• Russia: In most of Russia’s regions, the price of the average food basket went up by 20-30 percent between July 2010 and March 2011. Russian food prices remained high even after the Russian government introduced a grain export ban that led to a surge in prices on the international markets.
• Guatemala: Nearly half of children under 5 in Guatemala are chronically undernourished, and the proportion of the population suffering from malnutrition has been rising. In rural areas, up to 70 percent of children are malnourished.

/ENDS

Notes to editors

The map can be found here: http://www.oxfamamerica.org/articles/food-price-spikes

Copy and paste the following code to add the map directly on your website:

The Canadian organization Rights and Democracy has developed an assessment tool that communities can use to answer these questions for themselves. The system is called the “Getting it Right” Human Rights Impact Assessment tool, and is designed so that local organizations and citizens can, with minimal training, carry out their own study of how their basic rights -- such as free speech, water, safe working conditions, shelter, and education -- are affected by the actions of governments and companies establishing mines, agricultural operations, factories, or oil and gas pipelines.

“A lot of companies will do an impact assessment on their operations, using an outside consultant, but these don’t always do much for the stakeholders in the community, or promote accountability,” says Chris Jochnick, director of Oxfam America’s private sector program. “Helping community members conduct their own human rights assessment strengthens their capacity to examine their situation, frame their issues, and engage with a company or government,” he says. “We think this will produce a more robust and balanced assessment than one done by outsiders.”

The Rights and Democracy assessment tool helps people document how their rights are supposed to be protected under national law, and the actual effects of an investment project on these rights. It helps community leaders create a team, plan out the work and specific rights to assess, carry out surveys and community consultations, validate findings, write reports, and meet with companies and governments to urge action to address the problems uncovered in the assessment.

A tested tool

Rights and Democracy commissioned five assessments to test the system starting in 2005. One of them looked at the effects of a metal refinery on women’s rights in La Oroya, Peru, concentrating on the rights to water, health, adequate housing, and working conditions. It was done by the Centro de Promoción y Estudios de la Mujer Andina. The organization concluded that lack of enforcement of environmental rules by the state was one of the main contributors to the poor public health situation in the city. The report also cites lack of commitment by the Doe Run Peru SRL company to improve the environmental performance of the plant.

“By looking at the health problems in La Oroya through a woman’s eyes, this assessment helped uncover a pattern of children’s and reproductive health issues that was clearly connected to lead poisoning,” says Gabrielle Watson, Oxfam America’s planning and learning specialist who helped develop the assessment tool with Rights and Development.

Oxfam America is helping two organizations carry out a Human Rights Impact Assessment. One is related to a proposed natural gas operation in Bolivia where the Centro de Estudios Aplicados a los Derechos Economicos, Sociales y Culturales (CEADESC) will carry out the study with local Guaraní indigenous communities that were denied their right to be consulted about the gas exploration activities in their territory. The other case concerns tobacco pickers in the United States, and will be carried out by the Farm Labor Organizing Committee (FLOC). FLOC will look at efforts by migrant and undocumented farmworkers to improve working conditions on tobacco farms.

Watson says the human rights assessments will help people take control of the type of development carried out in their name. “Local people are the experts about human rights impacts of private investment projects in their communities. This tool puts them in the driver’s seat in the search for safer, more equitable outcomes that are good for everyone.”

According to Peru's Civil Defense Institute, the rains have hit 18 of the country’s 24 regions, causing suffering to more than 190,000 people and damaging more than 28,000 homes. Particularly hard hit are communities located along the major Andean rivers in Cusco and Puno in the south.

With a $100,000 grant, Oxfam is supporting its local partner, PREDES, to help 529 families living in temporary shelters in the provinces of Anta, Calca, and Urubamba.

"At the moment, we're improving the temporary shelters to ensure they have clean water and basic sanitation, and so avoid major health problems", said Oxfam’s Elizabeth Cano, who is coordinating the humanitarian response for the organization.

Work includes the installation of separate toilets for men, women, and children as well as the distribution of hygiene kits equipped with basics such as toothpaste and soap. Oxfam and PREDES are also working with civil defense committees to help communities and local authorities improve coordination to be better prepared for future natural events.

"The only thing we haven't lost is our health and our lives,” said Eufemia Araníbar, a member of the Nueva Esperanza neighborhood committee in the district of Izcuchaca. "We haven't lost our children or our husbands. Everything else we can rebuild, because we have our health", she tells us firmly.

In Cusco, a night that won't be forgotten

In Cusco, on Saturday, Jan. 23, people were already looking with concern at the clouds in the sky and the swollen rivers. Persistent rain had caused the rivers to rise, particularly at their confluence points. In a matter of hours, the Vilcanota, Jatumayo and Huatanay rivers and Huacarpay Lake had overflowed.

"Since Saturday 23, we've been in a state of alert, protecting ourselves, putting sandbags along the edge of the river. But it overflowed upstream, where we didn't expect it, and the houses have collapsed,” said Urbana Huamán, a 43-year-old single mother from Anta Province, as she showed a team from Oxfam the curved shape of a nearby river and lamented the miscalculation.

While in some areas residents stayed on the alert, elsewhere they had observed a reduction in the turbulence of the river and, instead of going out to keep watch and put up barriers, they went to bed, assuming they were safe.

"During the night, the water came and caught us unaware,” said 34-year-old Eufemia Araníbar. “Some people were awake, digging ditches, but some of us were asleep. Suddenly we were woken up by shouting and whistling. When I stood up, I felt water on the floor. My shoes were already wet.”

The first thing she did was to get her children out.

"We couldn't save anything, just a few clothes,” added Araníbar. “The water took everything. It took my pigs, my guinea pigs, my chickens..." And with them she lost she lost her savings.

Since that January night, the rain has not stopped. In March, the Quesermayo, Antarhualla and Kitamayo rivers in Calca Province broke their banks. There have also been landslides and more homes have been destroyed.

Now, it’s all gone—their home and their livelihoods--destroyed in floods triggered by heavy rain in the mountains of southern Peru. Across the country, the rains have affected more than 190,000 people. Eighteen of Peru’s 24 regions have been hit, including Cusco, which has experienced unprecedented amounts of rainfall.

"Suddenly we found ourselves with no house, no business,” said Salinas, as she showed an Oxfam team the plot of land on the river bank where her house used to stand and where now there is only debris.

"I didn't want to leave. I had to be carried out,” Salinas said, describing how the river water rose hip-deep in her house. She wanted to save her goods and her husband's work tools. Three days after she was evacuated, the house collapsed. Now the couple is living in the temporary shelter in a stadium, thinking about how to start over again.

María Gutiérrez, 50, from the district of Izcuchaca in Anta Province told a similar story.

"I used to be a storekeeper,” she said, using the past tense because the disaster has left her with no capital. She would buy corn, wheat, and beans, and store them in her house to sell. But all of that was washed away by the river.

"Even if I had the money, I couldn't set up my business again because I used by house for storage and now I wouldn't know where to store the goods", Gutiérrez added.

‘What are we going to eat?’

While shopkeepers wonder how they will recover their losses, a larger worry for the region may be the harvest. According to Peru's Civil Defense Institute, 21,730 hectares of crops, or more than 53,000 acres, have been destroyed and more than 130,000 acres have seen a partial loss of crops, mostly in the Cusco and Puno regions.

"Nearly 100 percent of the crops have been lost,” said Juvenal Durán, mayor of the district of Yucay in the Sacred Valley. "The farmers have lost their crops: the corn and cabbage are rotting. Agricultural insurance only covers 400 soles ($141), and there are people who rent their land, so what are they going to do when the crops fail? Yucay is dependent on agriculture. What are we going to eat? Where are we going to live? How are we going to be able to send our children to school?"

The communities in the upland regions have also been affected.

"In my community the crops are riddled with pests, late blight. What's more, as we farm on slopes, the soil is being washed away,” said Alejandro Huamán from Andahuaylillas. He’s worrying because farming is how his family makes a living.

Helping agriculture recover

The local authorities are aware that the focus must be on how to safeguard the next harvest.

"We've got a plan to ensure the next harvest: seeds, fertilizer, training, river defenses. In addition, we need to rebuild the bridges to improve trade and the irrigation channels,” said Gilberto Gil, a councilor in Urubamba.

At the same time, officials know that they need to think about how to help local communities adapt to unpredictable weather.

"This is going to be permanent due to climate change. We must prepare for rains and droughts. We have to address the immediate problems but also plan for the long term,” said Gil.

"One of our biggest concerns is that these disasters will increase poverty", said Elizabeth Cano, Oxfam’s humanitarian aid coordinator in Peru. "One of the main sectors that has been affected is the small-scale farming sector. Unlike the tourism sector, many small-scale farmers live in poverty, so it takes them longer to recover. We are appealing to the central government to increase support measures for this sector."

"Resuscitating Doha is essential to right the rigged rules of trade, but what's been simmering on the WTO stove will simply not deliver for poor countries, said Oxfam America president Raymond C. Offenheiser. "The financial crisis, which started in developed countries but is taking its worst toll on developing countries, should be the impetus for a change in course."

In a new report released today called "Empty Promises," Oxfam details how the Doha Round has become an exercise in prying open developing country markets rather than an effort to rebalance decades of unfair agricultural and industrial trade rules. In the midst of a global economic crisis, a food crisis, and a climate crisis, nations with the least blame and with the least capacity to cope with the consequent effects must not have to pay even more to enable their economies to develop, according to the report.

Over 50 million people stand to lose their jobs, remittances are collapsing, and growth in sub-Saharan Africa is predicted to fall by 70 percent this year trapping 90 million more people in poverty, because of the crisis. Food prices meanwhile remain high for poor consumers: by the end of 2008 a further 109 million people had been added to the ranks of hungry, topping 1 billion people worldwide. As the world experiences the sharpest drop in trade in 80 years, a "development" trade deal—as originally promised—remains crucial, according to Oxfam.

"Now is the time for WTO members to come back to the negotiating table, recognize that the current crisis provides an opportunity to address urgent development needs, and change the course of negotiations, much as they did nearly eight years ago in Doha," said Offenheiser. "At this time of desperate need for a change of course, the Doha Round has to step up to deliver on its development promise. There is little credit left for another failure."

The welcome political commitment from the G8 could lead to a fresh start to negotiations, but it cannot be business as usual. In the past eight years, developed countries have used the talks to continue to push to open up new export markets. Developing countries have resisted, saying they were promised a deal that would give them space to protect their farmers and new industries, an end to rich country trade-distorting agricultural subsidies, and more access to rich markets for their farmers and industries.

The widespread food price crisis has shown that food and livelihood security cannot depend solely on market forces. Development, rather than liberalization, has to be the central objective of negotiations and trade rules must respond to the needs of the most vulnerable people first and foremost, according to Oxfam. It is the responsibility of WTO member states to analyze the role of trade in the recent global crises so that the Doha negotiations take into account the new global context and contribute to a solution, rather than exacerbate the problem.

"What's on the table is no silver bullet since it continues to favor the richest and biggest farmers and industrialists in the US and Europe and sidelines the needs of the poor," said Offenheiser. "We have seen what can be done when countries find the resolve to avert problems at home, and this resolve must be translated to the multilateral trade agenda so that the much-needed conclusion of the Doha Round can be achieved in a manner that addresses developing country needs first and foremost."

There are about 200 indigenous Ashaninka people living in this area, but most of them, like 29-year-old Dante Cheresente, are not making much money and therefore can't pay for things like doctor visits when family members fall ill or education for their children. They live off of the fruits and vegetables they grow in their small plots, but these are mostly for their own consumption. "We grow yucca, plantains, lemons, oranges, and tangerines," Cheresente says. "But we just eat most of it and feed it to our animals, because prices are so low it is not worth selling."

To tap into the opportunities of the market economy and make some money, Cheresente and his father, who is the village chief, and others in their community are collaborating with a local rural organization known as SEPAR, Oxfam America's partner in this central jungle region of Peru, to carry out an experiment: growing the ancient Sacha Inchi plant, which yields a nut that is rich in nutritious omega-3 and omega-6 oils.

"There is demand in Peru for Sacha Inchi oil for cooking, but also as a health supplement internationally," says Raul Ho, Oxfam America's program officer in South America. "It is well known now, and the supply is lower than demand, both in Peru and abroad. To meet this demand, we will help indigenous farmers find the right Sacha Inchi variety for their lands and help them grow, process, and sell it in the fair trade market."

Building on strengths

SEPAR is working with farmers like Cheresente all over the central Amazon to plant experimental plots of Sacha Inchi. In San Ramon de Pangoa, they are growing two different varieties, one from the northern Amazon and one from the southern region, to determine which will perform best in the soil and altitude found in their village. "This is being done with indigenous farmers every step of the way," says Ho. "We will help them enter this market with the right seeds and production technology, and the farmers will know the best practices for growing Sacha Inchi." The goal is to produce a high-grade, organic Sacha Inchi, for which the farmers will get the best possible price.

In San Ramon de Pangoa, the rows of Sacha Inchi plants are interspersed with corn, soy beans, potatoes, and other food crops to determine which growing patterns work best. Frank Mendoza, a tropical agriculture expert advising SEPAR, says the Sacha Inchi crop could be quite lucrative. "If we can help these farmers grow Sacha Inchi as just one of their crops, it will increase the income of the farmers considerably," he says. Cheresente and his father, for example, say if they can make decent money from Sacha Inchi, they could devote five of their eight hectares—about 12 of their nearly 20 acres—to growing the plant. Ho and Mendoza estimate that with luck, in their first year they could get as much as 500 kilos of Sacha Inchi per hectare and sell the unprocessed nuts at about seven Peruvian soles (about $2) per kilo. This could mean a gross return of as much as $5,000 per harvest. With the right variety and improved production techniques, farmers like the Cheresentes could eventually produce nearly 1,000 kilos per hectare, which would bring in over $10,000 for unprocessed Sacha Inchi nuts on their five hectares, a huge income boost in a very poor region of Peru.

On their own terms

Cultivating a valuable cash crop like Sacha Inchi can help the indigenous Ashaninka people in villages like San Ramon de Pangoa to connect with local and international markets on their own terms: to earn money and preserve their culture and way of life. Preserving community and the Ashaninka's legacy occupy Cheresente's mind quite a bit these days: he and his wife, Laura, have a two-month-old son, Jason Fritz Cheresente. While his father talks with visitors, Jason Fritz lays in a hammock, quietly sleeping. Attached to the hammock is a string, which his grandmother pulls gently to rock the baby as she talks with friends. She and her generation have witnessed the wholesale occupation of this central jungle region by settlers from the highlands escaping the guerilla war of the 1980s and seeking land and opportunity. The government encouraged this exodus, believing the land was unoccupied, as it ignored the indigenous inhabitants. The result is that the Ashaninka have been squeezed into smaller and smaller areas and can no longer hunt and fish. They are now settled and trying to become part of the larger economy while preserving their culture. Despite these pressures, Cheresente is optimistic that growing Sacha Inchi will help them. "We expect to increase our income, so we can support the elderly people in the community, as they were the ones who worked to get this land. We also want to improve the level of nutrition and education for children here."

Growing Sacha Inchi is just part of this economic integration for the Ashaninka. Others in the village are getting help in producing and marketing handicrafts such as woven bags and traditional garments, as well as souvenirs for tourists. Cheresente's wife even got a grant from SEPAR to open a store, where she sells food, soap, and other consumer goods. Small enterprises like this will help people earn cash they can use to pay for health care and other services. And more small enterprises will help start to move cash through the rural economy.

Growing Sacha Inchi and other money-making ventures in these indigenous communities will help people prosper and maintain their communities. Cheresente and his neighbors have worked hard to get the research plots growing despite a serious drought that set in just after planting last year. They watered the Sacha Inchi plants from a small stream near the village and tended the plots three entire days per week.

Antonio Cheresente, Dante's father, says they are looking to Sacha Inchi for their future. "We know this research will help us improve our farms," he says.

Charupá does not seem particularly worried, as he is used to the uncertainties of raising cattle. Moreover, he is confident about the long-term prospects of his community: in June of 2007, the president of Bolivia announced that the Chiquitano people had successfully completed all legal requirements to attain title to a vast area of Santa Cruz's eastern forest known as Monte Verde.

Claiming the original community

The indigenous people took advantage of an agrarian reform law passed in 1996 that allowed them to claim "original community territories" known by their Spanish initials as TCOs. The Monte Verde TCO has immense significance for the Chiquitano people. Their ancestors were moved out of Monte Verde in the 1700s by the Spanish and relocated to communities run by Jesuit priests. Chiquitanos were enslaved on haciendas and eventually forced to tap rubber trees in the early 20th century. The area near Charupá's village is part of San Antonio de Lomerío, a place of refuge for escaped slaves. Their descendents organized groups to work on the legal claim for their territory, while illegal logging decimated their forests.

It took more than a decade of hard work and sustained Oxfam support for the Chiquitano people to achieve their goal. Oxfam helped three local organizations, in Lomerío, San Javier, and the village of Monte Verde to coordinate their work and collaborate with the Center for Legal Studies and Social Research (known by its Spanish initials CEJIS) to get the technical training to gather satellite positioning data on the TCO borders and investigate 158 land claims by ranchers and other nonindigenous people trying to grab a piece of the territory. Only a small number of these claims were legitimate, and it was only through the legal support, technical data, and satellite photos gathered by the community members and CEJIS that the Chiquitanos could defend their claim from these interlopers, some of whom were using forged documents.

Change can be dangerous

Violence has been a continuous threat to the Chiquitano people for the last 200 years. Individuals forced into slavery were murdered if they tried to escape, and later when the ancestors of escaped slaves in Lomerío organized to win back their territory, their leaders were intimidated and attacked. "We heard of incidents in other communities where entire families had been pulled out of their houses and hung by their wrists under trees," Juan Soqueré, leader of the indigenous Chiquitano community in San Lorenzo said.

Opposition to the land investigations and the legal process from civic committees, representing nonindigenous business and ranching interests opposed to the indigenous people, became violent. When the land investigations exposed fraudulent claims, there was a strong reaction. One of the worst incidents involved Leonardo Tamburini, now 41 and the director of CEJIS. In 2001 while investigating one fraudulent claim, he was kidnapped.

"They beat me so badly they almost killed me," Tamburini said. "They put me in a pick-up truck, and took me to the Cattlemen's Association headquarters in San Javier—which is next door to the church. They had me there for about an hour. There was a cattlemen's congress going on, and they paraded me around the patio of the restaurant, all beat up and bloody, saying 'This is what we do to the people who want to take our land away from us.'"

Tamburini refused to sign a document recognizing the cattlemen's claim to half the territory of Monte Verde, and after the mayor of San Javier intervened he was released. "They didn't accomplish what they wanted," he said.

Juan Soqueré said that gaining the legal title to Monte Verde has brought peace for the Chiquitano. "There are no more threats. And those that threatened us before have left the territory, and now we are all calm, living in peace."

The future is now

There are 33 communities, comprising roughly 5,000 people living in or near the Monte Verde TCO. They are now looking to the future and envisioning the best ways to manage and enjoy the roughly 3,830 square-mile territory.

Lorenzo Charupá says such planning will be essential for the future. "We are deciding together what areas are for crops," he says. "We are setting aside areas for grazing, hunting, and to preserve trees. We have a map showing all the different areas and what we will do there. Everything has its place."

José Luis Rivera, president of the indigenous organization of San Javier, says they have several ways of making more money:

• Grow more beans, rice, corn, yucca, and other crops for their own use and for sale in local markets.
• Expand cattle raising improving their pastures, and produce more milk and cheese for sale.
• Handicrafts produced by local women: hats, hammocks, leather belts, and ceramics.

With the legal title in hand, the community has the confidence to make proposals to development organizations that might have otherwise been reluctant to support agricultural projects on lands the community did not legally own. "These institutions will have no doubt we can do these projects on our own land," Rivera says. "We have the right to our land and can respect our culture."

Outside Rivera's temporary office, his compañeros are building a new office to replace the one burned down by thugs last December. The walls are up, and the smell of sawdust mixes with the wood smoke and cooking scents from a nearby restaurant. Pablo Solis Chuviru, 57, is looking at the new building and reflecting on the struggle to gain the legal title to Monte Verde and what it means for the future for his small village, Turuxnapez, which means "Heaven's Door" in the local Bésiro language. "I hope we can hunt and fish, and use our trees in an orderly way," he says, resting in a chair in the winter sun. "Now we are using a forest management plan so that our children will benefit from the forest. This is the future for them; they can see the fight we won. For them it is a treasure."

"We get water from this ditch, which is a very dirty and murky channel, where garbage is dumped and even dead animals have been found," says Huarcaya, who lives in the town of Huaya Chica. But now, with the help of Oxfam, many families in Huarcaya's town have clean water to drink—thanks to the distribution of water filters and the training in how to use them. So far, the organization has provided 870 water filters in the districts of Humay and Independencia. The goal is to improve significantly the quality of the local drinking water, which often comes from unsafe sources.

Not only did the quake obstruct canals and collapse water treatment and distribution facilities, it also revealed how poor the water quality was in some areas of the countryside. Before the quake, many families had to buy water from tanker trucks or draw it from wells and irrigation ditches. In all these cases the water was unhealthy. The earthquake worsened this situation by increasing the risk of disease.

With the filters Oxfam has been distributing, people are able to remove impurities and sediments. Water that was initially murky, contaminated, and unfit for human consumption becomes clean and free from harmful micro-organisms.

"We get home tired after doing agricultural work (cotton cultivation) and now we have clean water without having to boil it first," observes Delia Mendoza Suárez, a 50-year-old mother of seven children in the village of Palto. Paltoand six other villages now have clean water for drinking and cooking.

Oxfam has been distributing water from tanker trucks in districts where the population does not have sources from which to draw water. The agency is working in coordination with other institutions, such as United Firemen Without Borders (Spain), Pompiers Sans Frontières (France), and Action Against Hunger (Spain). Oxfam has successfully put into service three water treatment plants and has installed 45 water distribution points, including tanks (of 600 and 1,100 liters) and water storage bladders (of 1,500, 3,500, and 6,000 liters), making available an average of 20 liters of water per person per day in each village within the districts of Humay and Independencia.

Health education

"Children and adults get stomach illnesses because the water is not clean. After the earthquake, the situation had worsened since there was no water. Now we have it again but it continues to be dirty," said Amalia Valdiviezo Meza, whose family now drinks filtered water.

To help address the ongoing problems, Oxfam is also coordinating a public health campaign through the local press. It's helping to spread information on the proper use of water, latrines, and hygiene to avoid the spread of disease.

"A month after the earthquake, the health risks keep increasing and we must not lower our guard. On the contrary, we will double our efforts to promote hygiene and good health," says Mónica Ramos, Oxfam's public health promoter in Pisco.

As part of that effort, Oxfam has distributed 1,650 hygiene kits, which include soap, shampoo, brushes, and towels, among other items. To achieve a more complete response, latrines and accompanying sinks for washing are also being installed.

Helping Oxfam to achieve its goals have been members of "Jovos," or Young Volunteers for Disaster Prevention, who came from Moquegua, in southern Peru. Assistance has also come from members of the "Grufides" group who have been helping with the installation of tents and temporary shelters as well as with the promotion of public health through talks on hygiene and the proper use and maintenance of water filters.

Maribel Sanchez is the communications officer for Oxfam International in Pisco, Peru.

Although Minera Majaz has not yet submitted its Environmental Impact Assessment (EIA), there is reason to be concerned about the area's environmental future, especially if Río Blanco proves to be just one part of a mining "district," or group of mining operations.

Considering the risks

First, mining is an activity with high environmental risks, as a list of hundreds of environmental liabilities compiled by the Ministry of Energy and Mines reveals. While it is true that a given mining operation usually affects a local area in a concentrated and relatively small manner—according to the company, the total area to be directly affected by the Río Blanco project will be around 4,450 acres (1,800 hectares)—it is also true that aquifers can be severely affected many miles downstream.

The potential contamination of the Río Blanco has become one of the main causes of unease for the people in the area, given that the proposed mining project is located in the river's headwaters. The Río Blanco is a tributary of the Chinchipe River, which forms the most important valley in the neighboring province of San Ignacio, in the department of Cajamarca. According to the study "Mining and Development in Peru, with Special Reference to the Río Blanco Project, Piura," written by a multi-disciplinary team led by Anthony Bebbington, professor of the School of Environment and Development of the University of Manchester, the most serious environmental problems that the mine could generate are "the leaching of acidic mine waters (AMW) from the mining site, the heaps of tailings, and the piles of excavated material." According to the study, the high precipitation in the area (2,000 millimeters (6.5 feet) or more per year) "raises the possibility that rainwater could filter through the piles of tailings and excavated material, transporting contaminated metals to both surface and underground waters." The study indicates that another worrisome potential problem is AMW contamination of the water table, because the open-pit mine would probably be deeper than the groundwater in the area.

After analyzing the environmental variables and reviewing the technical proposal by Majaz, Bebbington and his team concluded that "it would be possible to handle the environmental impacts of the project as designed," provided that this is an isolated mining project. If Río Blanco became part of a large mining district, the situation would be different and the risks to the environment, and water resources in particular, would increase considerably.

At the same time, the team had reservations, given that the proposed mining technology "has never been used in an area with as much precipitation or a history of seismic activity" and hence "the possible combination of tailings/wet excavation material and seismic activity is a reason for serious concern."

Weak regulations

Minera Majaz states in many of its official notices that using of state-of-the-art technology will protect the environment. However, simply complying with Peruvian laws, which are regrettably weak, is no guarantee of true protection from environmental contamination. Vito Verna, Director of the Indigenous Communities and Environment Program in the office of the Peruvian Ombudsman observes that "the Peruvian state apparatus lacks an integrated environmental policy. For example, each industrial sector has (or should have) its own maximum allowable pollution limits, and there should be national quality standard for water, soil and air. The system does not work because the ministries have not yet put these standards forward, and consequently the National Environmental Council (CONAM) cannot approve them."

As a result, Peru has approved standards only for air and non-ionizing radiation [such as emitted by radio waves, or microwaves], but not for water (the existing standard is obsolete) or soil. Although a mining operation is required by law to treat its waters before discharging them into a body of water, the maximum allowable limits are so lax that they could even be Class III—waters suitable for irrigation or livestock, but not to sustain aquatic life. Thus, in Peru, a mining operation could exterminate fish, amphibians, and other river wildlife without breaking the law.

But the potential environmental impact of the Río Blanco project does not end there. The project site, in addition to being at the headwaters of a river basin, is located in the heart of a vast area of high-altitude cloud forests—the last sizeable area of tropical rain forests remaining in the department of Piura. These forests have great value in themselves, owing to their diversity and the fact that they form an extension of the forests of Ecuador and Colombia, and thus contain flora and fauna rare in Peru. Yet their greatest value is the connection they provide between the Tabaconas Namballe National Sanctuary (SNTN) in neighboring San Ignacio, and protected areas extending to the Ecuador border. The Río Blanco forest creates a "biological corridor," serving populations of animals that require large areas to be viable, such as the spectacled bear and Andean tapir—two endangered species protected by law.

A large open-pit mining operation in the midst of these forests, and the resulting human activity, represent a threat to the very survival of this corridor. Without it, the spectacled bears and tapirs of the sanctuary, which would lack the space necessary to survive, would be condemned to extinction. A World Wide Fund for Nature (WWF) study of the biodiversity of the sanctuary and its neighboring zones concluded that "the protection of a biological corridor between the SNTN in Peru and the Podocarpus National Park in Ecuador is critical for the preservation of the species that inhabit those areas."

The future role of mining in Piura

A final consideration: Minera Majaz is not the only company interested in conducting mining operations in the area. A glance through the government's Cadastral Mining Atlas reveals, in addition to the Río Blanco project, concessions of several thousand acres in Carmen de la Frontera. Many of these are adjacent to the Río Blanco project—forming, on the maps produced by the National Institute of Concessions and Mining Surveys (INACC), a solid block of mining concessions in the forests of the Yanta and Segunda y Cajas communities. In context, then, the Río Blanco project is just the first of many future mining operations, which, as a group, constitute a potential new mining district in Peru—and whose environmental impact would be considerably more serious and significant than any single project such as Río Blanco.

It is imperative that the Peruvian government consider all the environmental issues at play in the Río Blanco case, both as part of the dialog process following the referendum and when it evaluates the EIA that the company must soon deliver.

At 39, he’s content there—even if he doesn’t have enough money to build his animals a shed to protect them from the cold and snow. That will come in due time, he says. For now, he’s focused on another project that has helped to make his life in these remote mountains a little more secure: the field of barley growing on a steep slope near his hut.

That barley, soon to be harvested and carefully stored in a giant pit not far from the field, represents a lifeline for the 100 head of alpaca from which Gonzalez and his family make their living. The nutrient-rich grass will help tide his herd over should severe cold and snow damage their pasturelands again, as it did—with devastating consequences—in the winter of 2004.

With the help of Oxfam America and its local partner, Asociación Proyección, herders in this rugged region of southern Peru have learned how to seed and harvest small plots of barley and oats at an altitude some people thought was just too high to yield a productive crop. They were wrong.

“Two-and-a-half years ago we came here because the local government asked us to come, and when we suggested planting barley, everyone said we were crazy,” said Arturo Rivera Vigil, the field coordinator for Proyección. Today, small patches of deep green barley and oats dot the mountain plains, a buffer against future disasters.

“It has changed all of their lives,” said a translator, speaking for Gonzalez.

“The most important thing now is they can harvest and save the grasses for when the wind and snow hit,” said Simon Quispe Chipa, the mayor of nearby Caylloma, who has been supportive of the program. “Before the project, they couldn’t do anything to save the grasses.”

With the help of the two agencies, villagers planted a total of 110 hectares—about 272 acres—with barley. Family plots are more than half an acre in size—large enough to produce sufficient fodder to help sustain their animals through the roughest weather between May and September. The yield was about 23 tons per family. And since the first successful season, the families and the wider Caylloma community have been buying the seeds themselves, without the assistance of the two agencies.

The mayor has stepped in to help. Shoving open the door to a storage room in the Caylloma town hall—about a three-hour drive from Chiosiri—he showed off a huge stack of sacks. They bulged with barley seeds, filling the air with a sweet, earthy smell. The local government has been buying the seeds in bulk at a low price and selling them at cost to community members.

But it’s not just the barley that is helping to keep the region’s alpaca herds strong. Oxfam and Proyección have also been working with the community on restoring and expanding 272 acres of swampy natural pastures on which the livestock grazes.

By digging a series of narrow channels at a slight slope, villagers have fed water down into the pastures, allowing them to thrive and expand--with the help of clover they also planted.

Speaking through an interpretor, the mayor, Quispe, emphasized the importance of these simple, but vital projects.

“He knew how important it was to have shelter and improve the planting and seeding,” said the interpretor. “He knew that people living here didn’t have a chance to get a better quality of life, and felt strongly the people should improve their lives where they live.”

In a place where there is no electricity to run a pump, where llamas instead of trucks transport many of the goods, and where most people rely on a local spiky grass for their cooking fuel, gravity is the free and super-abundant energy source that is now powering Simon Ccalachua's sprinkler. And beneath the arc of water it sprays, a new growth of hardy rye grass is now sprouting—the guarantee that Ccalachua's alpacas will have the nourishment they need.

Here in Jachaña, a small hamlet in the district of Caylloma, Oxfam America and its local partner, Asociación Proyección, have launched a pilot project aimed at helping poor herders find ways to improve their resources so they can better withstand the hardships of mountain living—the cold, the snow, the remoteness. The sprinkler systems—there are now three scattered around the district—are part of a larger program that has helped 355 families in the area with everything from veterinary services to the production of high-altitude barley for their animals. The effort is part of Oxfam America's strategy to help Andean communities adapt to climate change, some signs of which are already apparent.

"They used to rely on nature and now they know how to work on channels and sprinkling," said a translator, summarizing the benefits for Ccalachua. "Before this project, the mortality of the animals (was very high). Now the mortality is 3 to 10 percent".

Using the resources at hand—a mountain spring and the pull of gravity—the agencies worked with Ccalachu to irrigate about two-and-a-half acres of his sloped, rocky land. Well-watered and well-fertilized (naturally, with alpaca droppings), a pasture that size is big enough to keep 20 alpacas happily nourished, said Arturo Rivera Vigil, the field coordinator for Proyección. The trick is to fence off portions of the pasture after the animals have grazed, allowing the grasses to recover. By the time the herd completes a full rotation, the grass where they started will be ready to eat again.

The system has a number of benefits, said Rivera. The robust diet the animals get encourages them to produce more wool. Instead of one or two pounds of wool, each alpaca can produce between two and four pounds—which in turn means more income for herding families. Keeping watch over the animals in a fenced pasture is a great deal easier for a herder than following them high and low as they roam freely looking for natural grasses, added Rivera. And the mechanism is easy fairly easy to construct: A small reservoir above the field, lined with plastic, is connected it to a pipe running down the hill. With the twist of a valve, the reservoir opens and the water gushes down through a pipe, shooting through slow-spinning sprinklers set in a line across the field.

The only stumbling block is cost. The price tag on each of these sprinkler systems is $1,625, and that doesn't include the cost of the machinery used to help dig the small reservoir.

"That's why (Caylloma) City Hall has to get involved," said Angel Chavez, an Oxfam America humanitarian officer who has worked on the project. Using tax dollars, local government needs to help support these kinds of projects, he added.

That's what the people of Jachaña want too—more sprinklers like the one Ccalachua has. A few pipes hooked to a few small reservoirs could go a long way toward improving the resilience of these mountain families. And though life at nearly 16,000 feet above sea level can be hard, there is no other place some herders can imagine living.

"There is no pollution. The water is nicer. And we have open fields," said Timoteo Ccalahua Quispe.

This activity is part of Oxfam America's adaptation strategy on climate change in Andean communities where already there are some signals of the climate change effects.

I am writing in regard to the imminent Congressional action on the US-Peru free trade agreement, titled the US-Peru Trade Promotion Agreement (PTPA). Oxfam America believes that trade can be an engine for development and poverty reduction, and we strongly support measures to improve trading opportunities that can reduce poverty. However, we also believe that trade agreements must take into account the economic and social disparities between trading partners and include rules that allow the poor to realize these important potential benefits. Unfortunately, as a recent Oxfam report indicates, the PTPA will cause greater hardship and could undermine development in Peru. For this reason, Oxfam is calling on Members of Congress to oppose this legislation.

The PTPA, as negotiated, will harm many thousands of Peru's small farmers who supply food to their domestic market, as they will be forced into an unfair competition with subsidized US agricultural exports. The agreement will limit access to affordable new medicines in Peru by unduly extending the monopoly rights of the international pharmaceutical industry. The PTPA will also restrict Peru's ability to regulate foreign investment to ensure it serves national development.

Agriculture

More than half of Peru's nearly 28 million inhabitants live in poverty, many of them in rural areas, and the PTPA will adversely affect the livelihoods of many of the poor if passed. Agriculture is the main source of jobs in rural areas, generating nearly a third of all employment nationally. The vast majority of Peru's agricultural production is for domestic consumption. The trade agreement makes permanent the export opportunities that Peru currently enjoys under US trade preference programs and will thereby benefit certain export sectors. Yet barely 8 per cent of Peruvian agricultural production is for export, only one third of which is destined for the US (coffee, as well as non-traditional products such as asparagus and artichokes).

On the other hand, the PTPA will fully eliminate tariff protection on basic crops, which the US International Trade Commission has estimated will lead to large increases in Peru's imports of US basic grains, such as wheat, rice and corn. This means that Peruvian farmers who supply their domestic market will be undercut by heavily subsidized, cheaper US imports that are dumped in Peru below their real cost of production. As a result, there is a risk that many Peruvian farmers who are no longer able to earn a living by producing basic grains will turn to coca cultivation, thereby undermining years of US foreign policy and drug eradication efforts.

It has been suggested that Peru's farmers could be compensated for the loss of their livelihoods. However, Peruvian agricultural leaders have stated that farmers would need close to $1 billion to compensate for their annual losses from the PTPA, nearly 30 times what the Peruvian government has committed to make available. This is also a far less effective way to promote development than providing full and effective safeguards for crops that are vital to livelihoods and food security.

Access to Medicines

The PTPA could lead to significant increases in medicine prices, another issue of major concern for poor people in Peru. Stringent, new intellectual property provisions in the PTPA will restrict generic competition and lead to higher prices for new medicines in Peru. Only half of all Peruvians have health insurance and about one-fifth of the population has no access to health care. Medicines account for one-quarter of all public health expenditures and 44 percent of household spending on health. People living in poverty are, for the most part, not insured and must either pay out of pocket or receive no treatment at all. Given these conditions, any increase in the price of medicines is likely to have significant negative consequences for the

The PTPA will unduly extend monopoly protections for the international pharmaceutical industry, which will mean that fewer Peruvians, particularly the poor, will be able to get the medicines they need. A study commissioned by the Ministry of Health in Peru has shown that provisions in the PTPA will increase the cost of new medicines, and the Health Minister has reported that an increase in public health care expenditures will likely be required in future years. Imposing new burdens on an already cash-strapped health care system will further exacerbate poverty and inequality in Peru. The primacy of public health over private patents has already been well-established at the World Trade Organization (WTO). Yet the PTPA ignores this by restricting the use of public health safeguards allowed under the WTO and requiring adoption of new intellectual property rules that exceed the WTO standards.

Investment

The rules on investment in the PTPA give foreign companies leeway to challenge investment regulations, such as laws to protect the environment and public health. This will undermine Peru's ability to ensure that foreign investment contributes to national development, rather than exacerbating poverty. For example, Peru's Law for the Promotion of the Agricultural Sector grants the farming industry certain tax benefits if at least 90 percent of its inputs are sourced nationally. Under the PTPA, this law could be challenged and potentially repealed. Likewise, efforts to regulate the operation of the mining industry to address its health and environmental effects could be challenged.

Conclusion

While the economic impact of the PTPA on the US is likely to be negligible, the economic and social costs to Peru will be high, especially among the poor. Peruvian agricultural exports to the US will expand little, as noted by the ITC, given that these products have already enjoyed duty-free access to the US market under Andean trade preference programs for the last 15 years. Contrary to promoting stability in Peru and the Andean region, the PTPA is likely to exacerbate the existing problems of poverty and inequality and undermine regional integration and development.

Although the PTPA has been actively promoted by Peru's outgoing president and approved by its lame-duck Congress, there is deep concern among much of Peru's population about agreement. Broad cross-sections of civil society in Peru have actively opposed or questioned the trade agreement. The PTPA was a significant campaign issue in the recent presidential elections, and the winner, incoming President Alan Garcia, campaigned on a promise to closely review the agreement's potential impact and renegotiate it if necessary.

Oxfam believes that in order for trade to truly be "win-win" for developed and developing countries, trade rules should be negotiated under the multilateral trading system at the WTO. The Doha Development Round was launched with the understanding that it would deliver on the promise of development for poor countries. A successful conclusion to these WTO negotiations that provides new opportunities for developing countries will also benefit the US by promoting more stable economies and increased purchasing power in the developing world.

Bilateral trade deals like the PTPA complicate the global trading system and divert efforts to achieve a more valuable global agreement at the WTO. Furthermore, the PTPA includes rules that weaken the ability of Peru to enact policies that reduce poverty and further national development.

For these reasons, and because of the harm it will cause to the poor in Peru, I urge you to vote no on the US-Peru free trade agreement.

Sincerely yours,

Raymond C. Offenheiser
President