Peru's workers and poor want a greater share of the country's economic success [AFP]

In a speech delivered on the 187th anniversary of Peru's independence from Spain on Monday, Alan Garcia promised to cut the poverty rate to 30 per cent from 40 per cent during the remaining three years of his term.

"After impressive growth, we propose more redistribution and an intense fight against extreme poverty," said Garcia, whose popularity rating has slipped to a record low of 26 per cent despite high economic growth.

"Peru has advanced, but it is now time for the poor to advance the most," he said.

Dozens of protests, strikes and blockades have erupted this year in the South American country.

Rising inflation

A former left-winger, Garcia is now a supporter of free markets, welcomes foreign investors and has signed a free-trade deal with the US.

Though some Peruvians have benefited since he took office two years ago, workers and the poor are now demanding a bigger share of an economic boom that is in its seventh year.

Growth reached nine per cent last year, but inflation has eroded support for the government.

The president has blamed the country's problems on prices for imported wheat and oil that have more than doubled and pushed up annual general inflation to around five per cent.

Food price inflation has been rising twice as fast as other goods.

Elmer Cuba, an economist at Macroconsult "the government has made big strides on the economic front over the past two years, but it has lagged on social issues".

"This is why a large sector of the population is unhappy," he said. "This has created an environment of anxiety and protest."

Recommend this article...

Did you enjoy this article? Please bookmark it onto: