13th May 2011

Peru and Ipswich – A Hopeful Lesson?

Who is this guy?  What’s he doing in my column?  Let me explain.

Fourteen years ago, when I was a little more fresh-faced than now, I worked for six months teaching English and music in a shanty town in Lima, the capital of Peru.  The community, named Zapallal, was right on the edge of the city.  Every day families arrived from the countryside and would set up a shack.  There was no running water, electricity only came if you had a generator and gas was out of a bottle.  80% of the people were unemployed and those that did have a “job” were mainly hawking matches – or themselves – in the city centre.  There are very few places on earth where men and women live in such deprivation.

Understandably, people in Zapallal were very cynical about politicians, who promised the earth and delivered disaster.  The worst in recent memory was a socialist called Alan García, president of Peru from 1985 to 1990.  In those five years García bankrupted the country, allowed inflation to go over 7,000%, saw the economy shrink by a fifth and the number of Peruvians in extreme poverty increase from just over 40% to over half the population.  On top of all that, Communist terrorists and drug barons took over large parts of the country.

So you can imagine my dismay when I saw that he was running for president again in 2001.  Poor Peru – could it take any more?  But García surprised.  He was straight with people: he admitted his mistakes and said that he had learnt from them, making him the most experienced candidate.  He lost that campaign but showed himself worthy in opposition, gaining the presidency once again in 2006.  In just under a month’s time he steps down.  So how’s he fared?

García’s been true to his word.  He’s ditched socialism and followed a free market economic policy – privatising, deregulating and bearing down on the deficit.  The result?  Inflation of 2%, an economy growing by 7% a year, debt at 25% of GDP (remember that ours will soon be over 80%), and the number of Peruvians living in poverty down to 30%.

So what’s my point?  Simply that redemption is possible, even in the most unlikely candidates.  Let’s hope the same is true in Ipswich.

First, let me congratulate David Ellesmere and the Ipswich Labour Party for winning control of the council.  I genuinely wish them well.  Frankly I do not care much what colour is in power, just what they do for our town.  But if we are to see growth and prosperity, they would do well to reflect – like Alan García – on the mistakes of their past.

The last Labour council left Ipswich with net debts of £30 million and one of the highest council tax rates in the country.  Many of the town’s assets and facilities were poorly maintained.  Some good decisions were made but mostly it was a mess.

David and his colleagues have received the Borough in a much better state.  Debt is down to £18 million, Council Tax is due to be reduced this year and next, and most of the town’s social housing, parks, swimming pools, theatres and museums have been refurbished and improved.

Our challenges are enormous.  We have to bring more wealth and aspiration to every citizen of our town.  Labour want the same.  I sincerely hope that they accept what went wrong before, build on what has gone well since, and thereby help create a better future for us all in Ipswich.  I look forward to working with the new administration to achieve that end.