During his presentation at the CADE Executives 2023, David Tuesta, former Minister of Economy and Finance and president of the Private Competitiveness Council (CPC), called on the Executive to take braver and clearer positions on the promotion of private investment, the opposition to the anti-technical laws approved by Congress and on the operations of Petro-Perú. If he does not comply, he indicated that he will not be able to regain the trust of the private sector.

Here we must be clear: there is nothing more inconsistent than someone asking us for trust and observing that they take advantage of the State’s resources, that they direct jobs to friends. There is no way. The second space is the team. You have to have a team of believers in private investment, your ministers, your vice ministers, your directors. What feeling do many mining companies have when they begin to see how to advance their projects and encounter officials with clearly anti-mining positions? There too, this type of position kills any plan you put forward.“, he noted in the panel “Review of CADE Executive 2022 commitments: Advances, setbacks and new proposals to increase productivity and activate growth engines.”

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In that sense, he commented that 75% of officials in public sector positions do not have the minimum requirements to occupy them, while 98% do not have knowledge about how the execution systems they must operate work.

Likewise, he questioned that the Executive does not speak publicly on complex issues.

When anti-technical, anti-constitutional, inefficient, and harmful initiatives are presented in Congress, a clearer statement is needed from the Executive. You can’t stay silent. What do we do with Petro-Perú? Do we let it continue losing billions of dollars and not propose a law to improve its governance? Or what do we do with the anti-labor laws of Pedro Castillo’s Government where no one says a word? These are clear inconsistencies between a plan, to which we give the most beautiful name in the world, but which is not going to work enough if there are no necessary commitments to advance”, he questioned.

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For this reason, he concluded that the country is not in an economic position to have a Government that does not propose brave policies for 2026, but rather needs one with greater ambition that allows it to be put on the path of growth.

Indicators

In terms of labor, Tuesta suggested combating the hiring of informal workers by redesigning the payment of taxes and formal labor benefits.

It is impossible for a small, medium-sized company to want to hire formal workers if each worker costs almost 70% of the formal salary (in non-salary costs) or more than 100% of the reported salary. It is impossible. Here is an approach that we are working on, that we must design a more progressive scheme in the payment of taxes, in the fulfillment of pension obligations, and give a more appropriate balance to this right to hire, but also to unhire, because there are quite a few imbalances”, he proposed.

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On the other hand, he questioned that after Covid-19 the first level of health care has not been improved. He highlighted that if the entire budget returned by public entities that was allocated to the sector was used, 40% of care centers of this type would have adequate operating capacity.

It is not understood why we do not see important advances after what we went through with Covid-19 at the first level of health care, where 94% of first level establishments do not have adequate conditions. It is not a problem of resources because every year both the Ministry of Health and the Regional Governments leave approximately S/2.4 billion unused. Imagine if we could use those resources and channel them through successful mechanisms such as works for taxes. In five years one could have 40% of these establishments operating optimally“, project.

Tuesta also indicated that at the national level there are around 2,100 paralyzed works and 54.5% of these were awarded through direct allocation. He stressed that this could be combated by updating contracting standards, as well as creating a platform that provides details of engineering companies applying in public tenders to choose the best.

This is solved in a very simple way, it is a matter of willingness to implement a platform that allows engineering companies to be accredited, where one can see their history and hire those that are the best so that the works finally come out.”, he assured.



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