Peru: "Law Pulpn" The IDB and the APP

Traps made and what lies

rubn ramos
In this article I refer to two aspects related to the "Law
promoting youth access to the labor market and social
protection." Law that now everyone calls "Pulpn Law". I do
not pretend to invalidate anything that young people have
said about it. I must emphasize, however, that the majority
is intuitive approaches. Others are the expression of old
trade union or party structures using its young members to
seek "dialogue" to the government and see how they fit
best to continue manipulating the interests of workers and
continue to vegetate. In any case, "the rebellious nature of
youth" has shown an unfortunate orphans information and
knowledge, both on the law and on the environment in
which it is framed and context in which it is part. Two of the
aspects that just want to try without pretending to exhaust
the discussion.
The "transmigration" of DL 728 and other traps
I am not an expert on labor issues but I know that the entire
legislative framework referred to the hiring of workers, their
obligations and their rights, was "relaxed" in favor of capital
and private enterprise, with the Structural Adjustment
Programmes (PAE) that resulted from the Washington
Consensus in the early 90's. Just for those who were already
working to those just incorporated.

From that time dates the Legislative Decree 728 that

approved the "Employment Promotion Act" imposed by
financial institutions (IMF-WB) governing since then
(although it had been doing before), the Peruvian economy
and society. This same institutions imposed the PAE and the
"package" 90 'kicking off the "miracle" of macro-economic

growth that generated extreme poverty, greater social

inequality and the current crisis. Many, however, yearn for
that miracle.

The DL 728 and its regulations were "ordained" in a single

text that appeared as "Consolidated Text of Legislative
Decree 728, Law of Productivity and Competitiveness
Supreme Decree 003-97-TR 27.03.1997". Something else:
Law, Regulation and unique Text (TUO) were imposed by the
same institutions that imposed the macro economic model
for Peru and were endorsed by former President Fujimori
and his ministers first ineffable, each in turn.

It is at this TUO that "Pulpn Act" refers as "default text" to

all matters not provided in this Act. Thus it is written in
paragraph 5 of Art.1 of "Pulpn Law". It reads: "In all matters
not covered by this standard is of supplementary
application regulating contracts subject to conditions
specified in Consolidated Text of Legislative Decree 728,
Law of Productivity and Competitiveness approved by
Supreme Decree 003-97-TR 27.3.1997.

And what are the contracts subject to special conditions?

All those "fixed term" (as those provided in Pulpn Act),

which "are celebrated because the needs of the market or
increased production of the company". That is defined in
Art. 53 of the TUO to which I have referred. It would pay
someone versed in the legal intricacies give them some
scope youth regarding their implications.

What is clear is that the Pulpn Act is part of a TUO of Act

728, the Title II, shall be that set the tone for everything
that will be the arrangements for recruitment of young
people and their "temporary", as it is easy deduce, is not
based on time, but "the market needs or increased
production of the company". In this sense, we should not
overlook, first, that the market urges be "reactivated" by
entering more "formal" consumers. No matter minimum
wage, but are creditworthy to join the millions who "live on
borrowed time". Second, PPPs, as discussed below, need
cheap labor to "cheapen" costs as well as the private sector
is meant to increase production.

Apart from this, two naive questions:

Is it why the "transmigration" of DL 728 to the body of the
Law Pulpn Congresswoman Martha Chavez defends this
law?
Will the exhortation of President Humala to congressmen,
was aimed at Fujimori? (Recall that this exhortation, in
addition to portray, called on Congress to "have convictions
and firmness rather weak positions that make them forget
and backward, because that generates the contempt of the
people towards the political").

The other traps

But the DL 728 is not the only "transmigration". There's

more. And it may be best identified as "traps" made to a
law. Thus, it is said in the Law Pulpn that anything having
to do with Workday, working hours and overtime work shall
be established according to DS 007-2002-TR, single
consolidated text of Legislative Decree No. 854, as
amended by Act 27671 or "regulation replacing". What to

do with what is called "very serious administrative offense",

it will be through the General Labour Inspection Act 28806
Art 33. And the return of social insurance payments, shall
be settled by Law 26979 (SUNAFIL). Enough said and step
to the second question.

The IDB and the "three reasons for optimism"

The second issue to which I refer is for desenmadejar the

true purpose of the Act Pulpn. Is directly related to public
investment policy and the role of caboose assumed by the
Peruvian State in the conduct of private train of its
economy. Responds to a higher level strategy which can not
access staring at his feet.

In everything I heard, for and against the Pulpn Act not

looked at all the author and main character of the
tragicomedy of "economic growth with social inclusion": the
Inter-American Development Bank (IDB), nor its supporting
actors : banks that make up the IDB Group (GERD) present
investment takes into account the Bank in all spheres of
national life. No mention was made to investors or partners
who have adopted modalities to be, first and ultimately to
advance the plot.

As is known, the IDB is one of those curious banks created

by the elites of the financial and global economic power,
whose name is longer than American, European, Israeli,
Japanese, Australian and South Korea to South American
and Caribbean. But for the role that all countries in this part
of the American continent as members "borrowers".

The screams of the shift manager of the palace of

government of Peru and his cohorts, has no other
explanation than to fulfill the commitments to the main
creditor of its public debt and principal "apalanqueador"
business of its lucrative investment partners foreigners and
natives in infrastructure and construction, exploitation of
NR, production, marketing, public services (health,
education, transport, communications, food, defense and
homeland security), governance and public administration
at national, regional and local levels, registration and land
titling, creating NGOs and Foundations as "Forge" for
example, working with youth in Peru, Dominican Republic,
Mexico, Colombia draft a billionaire transition from school to
work; or NEO also works with more than one million poor
and vulnerable youth in Latin America and the Caribbean to
improve their skills and ensure their "employability" in
companies in which governments and civil society
contribute resources. NEO has as corporate consortia as
Walmart, Caterpillar, Microsoft, CEMEX, and Arcos Dorados
partners. You can visit them online to see what they do.
Still, you can visit the website of the IDB to have an idea of
the magnitude of the management and control of this
institution of world order, attached to the OAS, on Peru and
other countries.

Here I only want to refer to one of the programs closely

related to the Pulpn Act, the meaning and projection. For
this I will refer to an IDB document itself entitled "Peru: the
economy slows." It is a document in which the Bank warns
about the precipitous drop vaunted Peruvian economic
growth (of 5.8 between October 2013 and March 2014, to
1.2 from April to September 2014). Obviously, says nothing
of the increase of extreme poverty and the extent of the
gap of social inequality that generated such growth in the
last three decades.

In the same document, the Bank warns of slowdown and

the crisis of the "fall of expectations' (a euphemism for
existing deflation), need not generate pessimism. And this,
he says, because Peru has "three reasons for optimism:
solid foundations, policy responses and structural changes."

1. As a "solid foundation", highlights the "risk rating" that

private agencies related to monitoring cash commitments
and fiscal policy, grant to Peru. And of course, for the Bank
this is a "strong argument" because it is linked to another
based on the "high foreign reserves" are those that
guarantee the payment of interest on loans imposed on this
country to continue to "grow "or try to overcome the crisis
in the current situation.

2. In regard to "policy responses" IDB identifies "PublicPrivate Partnerships" (PPP) generated in Peru and other
countries of the Pacific Alliance through MIF (Multilateral
Investment Fund). This bank is a member of the IDB Group
and is the first drive of the multimillion-dollar investments
that have been made in Peru. Share gear and parts with
another member bank group, called Inter-American
Investment Corporation (IIC). The two, plus the IDB itself,
are aimed at extending and securing private investment in
the "borrowing countries" in Latin America, the Caribbean
and the world. And in Peru, in particular.

Public Private Partnerships (PPPs) are a mechanism created

by GERD for the State to ensure the profitability of the
business of financial institutions in this group profit for its
investors and partners. These are none other than consortia
of foreign and native private companies, earning the Award

on how much work financed by the IDB. These consortia are

summoned and ranked by the Bank itself. Consortia
creditors of the projects are made "concession". These
concessions may be extended up to 99 years. This means,
for example, you and your generations will see the ItalianSpanish consortium that holds the concession for the Lima
Metro lines, as owners of infrastructure and services
involved. But not only this. They are also the owners of the
territory through which the Metro. Like in the case of
consortia "winners" Italian, Spanish, Belgian, South Koreans,
Germans,
Brazilians,
Chileans,
Colombians,
Israeli,
Japanese, Australian, Canadian, and American course
because all depend on the leverage of GERD alone or in
partnership with the other groups of banks World Bank
(GBM), and / or the International Development Agency of
the United States (GUSAID).

Public-Private Partnerships have been made to that private

enterprise will gobble public. That is, the state, we all are.
Not only this, they are designed in view of the "occupation"
of the territories by financial institutions and consortia and
foreign private companies. They assume, therefore a
violation of sovereignty over the country. This is the
Doctrine of the New American Century (AIPAC). But its
origins date back to the Monroe Doctrine and, earlier,
Manifest Destiny and the New World Order of the
Enlightenment symbiosis that is recorded on the dollar bill.

PPPs are the most violent usurpation of the country through

the economy. The establishment of the domain of private
enterprise, in a model of savage capitalism backed military
force. A form of appropriation of the territory, to degrading
it, ending stocks originating with the environment, with
public spaces. To destroy the same and build the alien in
the name of humanity and globalization. Operate and

dispose of the workforce, ensuring the hegemony of

international capital in the pattern of the US dollar. So was
foreseen the future of our economies after the fall of the
Berlin Wall and from the Washington Consensus and PAE.
This was endorsed by the Constitution of 93 in the Peruvian
case. This was instrumentalized the Fujimori, Toledo, of Alan
Garcia, Humala.

Regarding the Pulpn Act and the recruitment of young

people between 18 and 24 years relievar mind that it is
precisely these consortia and / or its member companies of
the Public Private Partnerships (PPPs), "leveraged" by GERD,
which will bid the "opportunity "to improve the"
employability "and to" promote the recruitment of
unemployed youth in those companies that do not have
existing consensual unpaid fines for violations of the social
and labor regulations. "(The reference to part of the APP,
can not be clearer). But they could also be hired by private
companies operating under that otherwise alienate the role
of the state (making it complicit in the exploitation of labor),
called "Works by Tax (oxy).

In any case, the "temporary" is a concept present in the Act

or appropriate to say, other than what I stated that
"temporary contract" has to do with the exploitation of
labor up to three years. Time during which consortia and
their member companies will be subsidized by the state
through tax benefits, payment for social insurance for
young recruits, the assumption of the costs of training. All
at the expense of taxes of all Peruvians.

It is not, therefore, only the precariousness of recruitment

and exploitation to be put young people but the enormous
benefits they will (and already obtained) financial

institutions and private companies forming consortia or

operate individually. Certainly at the expense of young
people themselves, but still, at the expense of all Peruvians.

3. With regard to structural changes, the IDB document

"Peru: the economy slows," emphasizes that one of these is
"Improving the formalization of employment". I will not
argue the falsity of this assertion, for reasons of space. I'll
just say on this in the "formalization" has turned much of
the failures of "Tyrian and Trojan" to discuss the Pulpn Act.

What the IDB is saying, or pretending to smuggle, is exactly

what makes this another institution, twin, guarantor of the
exploitation of labor by capital is the ILO. This considers that
formalize employment "is a strategy for development and
growth of the countries of Latin America and the
Caribbean". If so, the Pulpn Act must be repealed now!
Because nothing more opposed to the development and
growth, in this case of Peru, this Act, all I said for consortia
and / or companies that are engaged youth. PPPs are denial,
par excellence, of any possibility of further growth and
national development.

In this sense, "to improve the formalization of employment

in these companies, involves coating the labor factor of a
set of requirements and legal requirements to immobilize
the political capacity of workers and return to a position of
servitude and obsequiousness. In primary exporting
economies, where the only alternative to starvation is
"cachuelear", or beg, speak of "formalize employment" is
cynical, if not perverse. Informality is not only inseparable
but also functional to the type of economy that Peru and
most countries of Latin America and the Caribbean.

When our countries regain ownership of their natural

resources and initiate processes rational and sustainable
thereof exploitation, along with process manufacturing and
industrial processing of these resources within a framework
of economic independence and political sovereignty, will
not need the IDB or any of these institutions, which benefits
them informality recommend that formalize employment.

The story of formalization, taken as a recurring theme by

these institutions, the declining newspaper, the "experts"
and "political" upstarts and mediocre, only serves to lure
naive and stupefy the understanding of reality. Informality is
codeterminante with the type of economy and "growth" we
have in Latin America and now extends to Europe and the
US, where the measures neoliberal adjustment along with
changes in the global structure of production, has
unemployment released millions of "formal" workers. Ask
formalization, is not "flex" the tying work requirements and
barbaric speculative financial capital, but pursue their
equiparidad, near the capital, productive transformation
processes, wealth generation and distribution. But this is a
structural change.

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