Profile of the Project of FREE ENTERPRISE Capitalism Institutionalization in the Peruvian emerging class (informal) 

I.   POLITICAL DIAGNOSTIC

-                      Since its foundation as an independent Republic, Peru has had an institutional problem that exists even today due to its liberalization process from Spanish domination, in which all the socioeconomic components of the new born Republic at the end of the liberalization process were homogenized and lead by the join sectors that belong to the elite of the ruling (“virreinal”) class and some nationalistic sectors that didn’t have a clear vision of the mission of founding a free market Republic with limited government and democracy.

-                      At the end of the foundation of the Republic, those who assumed political power were the representatives of those sectors that designed the government and a political and social regime that liberated Peru from Spain. They managed to maintain intact the outcast and exclusion system of what we can call the Indian society, from the Estate power structure and also of the political, social and economic benefits of the new Republic.

-                      The institutionalization process of the state and the articulation of Peru as a Republic has always maintained this structural problem and the worst part is that the problem becomes rather more radical inasmuch as the actual State has an unlimited power system exclusively in the hands of the high representative political classes who also hold economic power (civil or military).

-                      The political forces that emerged as parties or political movements never had the intention of building a Republic that had a limited democracy with life, liberty and property rights that could be guarantied by a Republic in a national State nor a free enterprise institutional regime that doesn’t marginalize and exclude the emerging Peru, because it’s development has always has been the result of the historical structure and the high political and economic classes mismatch. The barred and excluded sectors always had to struggle between political and social fights, violent or pacific, for the change and foundation of a Republic with a limited government and democracy. They did not count with a political leadership and a planning version to fund a free market order, and they didn’t articulate a different political project as an alternative to the ruling political project of the oligarchy elite.

-                      This political force has been ruling Peru representing the oligarchy power and today the excluding statism has the capacity and astuteness of appearing as trade agents, assuming the positions of transformation with the purpose of leading the historical process that were looking to change the reality. What they were really doing was entrenching themselves in power and hence, diverting the process from the institutional changes to limit the government role.

-                      We can point out that the political viceroy power evolved and was transformed into the oligarchy political power. This power was transformed into the political power of bureaucratic capitalism, statism and mercantilism, and today’s power has transformed itself in a political power exclusively of an excluding economy forming a mercantilist regime formed by a political, economic, social and military breed that squeezes out the emerging sectors.

-                      This evolutionary process of Peru as a Republic, maintaining this structural problem in some way with general Velasco in the 70’s decade, was agitated because it is true that Velasco ended with the oligarchic state, but was unable to fund an state and a free market regime with a limited democracy and govenment with individual rights to life, liberty and private property guaranteed. At the end his statism and dictatorial regime, he helped the same oligarchy to transform into the new national mercantilist middle class maintaining the Peruvian status quo, but we have to acknowledge that if it hadn’t been for general Velasco Peru would have probably gone through a communist revolution.

-                      From the 70´s to the 80´s soon after the Velasco regime crisis, the civil political parties regained power with the old statistic plan and projects with some vague measures of reform and went on to an articulated pseudo-democratic regime from the 80´s to the 90´s that caused the Peruvian government collapse and the loss of their political leadership and the governance of the State.

-                      This is how in the 90´s Fujimori emerges till the year 2000 defeating two world wide figures (Mario Vargas Llosa and Perez de Cuellar) both proposing themselves for change, but making the historical mistake of banding together and making pacts, unable to break the prevailing political caste (called “partidocracia”). This was the reality that gave origin to the Fujimori phenomenon.

-                      Fujimori had the historic opportunity of ending this problem after the April 5 coup d´état, when 90% of Peruvians supported the liquidation of this prevailing political class, but didn’t have a reality mission and vision of funding a new Republic with limited democracy and government. We all know how it ended.

-                      Actually the representation crisis has been accentuated to the point that 60% of Peruvians have decided not to vote for the “partidocracia”, because this represents that old statism Peru that is in crisis and in total decadence. Now, the nationalism is raising with a political outsider that he is offering the same things that Hugo Chavez in Venezuela after were elected. This is why Peru urgently needs a cancellation of the old statism Republic that excludes, impoverishes and is anarchist, and is looking for a Republic that institutionalize free market with the individual rights of life, liberty and private property.

II.   THE INSTITUTIONALIZATION OF THE LIBERAL CAPITALISM IN THE EMERGING CLASS (INFORMAL)

-                      Today’s Peru is divided structurally because of the popular overflow of  "The Other Path", "The Mystery of Capital" and "The Way Out". Truthfully there are two countries: the formal Peru, lead and ruled by the “partidocracia” which unfortunally can continue to rule to Peruvian  misfortune, and the informal Peru of the other path that has transformed the country reality and with its political and social leadership, productive energy and its enormous transforming economic force has found a dynamic and vigorous Republic that lies within the inner state, but maintains itself excluded and outcast because there is no political leadership, nor a programmatic vision and determination of creating a new political project to fund a new free market capitalist Republic.

-                      This informal Peru of "The Other Path" and "The Mystery of Capital" does not represent the “partidocracia”, and doesn’t want to be represented by its political caste. Instead, it wants to get out of the outcast state with a limited government and democracy and a society of free market truly popular.

-                      According to "The Other Path" and "The Mystery of Capital" in the political, social and economic, Peruvian informal structure is the social base, the political force to found a new Republic with a vision and the mission of structuring Peru into a new national State which is not excluding and with a free enterprise political system.

-                      The book The Way Out written by Mansueti and Tapia, has explained the fundamental problem which is the statism (government with unlimited powers, resources and functions) that provoked the progressive disintegration of the free enterprise capitalism bases in the emerging class. That is why a need for a legal and institutional change was begun within Congress for the derogation of bad laws.

-                      Now we ask: Who is going to assume the challenge and take the decision of become the political tool (party) and the political leadership (a new political class) to carry out the enormous intellectual and programmed task of directing this process?

III.    IMPLEMENTATION METHODOLOGY OF THE PROJECT

-                      If we agree with the previous arguments, there are some alternatives to choose and some tasks tan may be implemented immediately:

a)                  Establish your own PARTY as an institutional tool that embraces the political, social and economic leadership in this process without the vices of the chief of the state (“caudillismo”). To do this you have to make a home of your party, a family that makes this new leadership into a support structure and picks up the philosophy and ethics of the free enterprise capitalism.

b)                  A GOVERNMENT PLAN that fuses the new Republic that we can identify as a ruling program “Peru, country of capitalistic owners and competitive entrepreneurs: The new path to a new dawn”.

c)                   A PRESIDENTIAL FORMULA with this mission and vision, that is based on this new leadership and politic representation and hopes that the country is founded on the informal Peru and the formal sectors that also represent the change, including the Christian and Catholic churches.

d)                  A PARLIAMENTARY LIST of the emerging political class of the new Peru that has as a priority the derogation of bad laws that stop the development of the free enterprise capitalism and proclaims the new constitution, that is the social contract of the foundation of the new Republic, inspired by principles of liberty, property and life, in order to end the structural problem of the outcast and exclusion.

IV. OPERATION PROCESS OF THE METHODOLOGY OF THE POLITICAL ENGINEERING TO IMPLEMENT IN THE PROJECT

1. IMPORTANCE OF A DIRECT PROMOTION STRATEGY 

Only through the people will participation be possible to generate an institutional reform with possibilities to endure time. If what we want is to really create the conditions for sustained economic development in our county, it is necessary to search the permanent contact with the basis.

1.1. POLITICAL ENGINEERING AND PROMOTION STRATEGIES

It is necessary to take into consideration that to improve any kind of institutional reform system one has to consider the confines over the work that will be develop, because in many cases, these are the elements and political activities such as:

* The general political environment analysis of the zone where the work is done.

* The identification of key leaders or political leaders with much influence in the zone.

* The making of popular assemblies.

* The recruitment of popular promoters capable of influence in organization decisions.

* The celebration of agreements with the Base Organization.

In addition, experience has proven that a demonstration of the comparative gains of the proposed political system it is not enough, and that firstly it is necessary for the promoters and the responsible team of the direction process to be involved in the political process of the Base Organization, with the purpose of detecting and neutralizing the actions of those who will eventually oppose to the implementation of the new system, “blocking the access to the free market system”.

In this diagram, the promotion strategy that will be implemented would depend to the analysis of the situation and politic characteristics in the zones and groups to work with.

In conclusion, there are two levels of decision and previous analysis to the design and implementation of a general promotion strategy, whether it is in the urban zone or in the rural one:

* STRATEGIC PLANNING / POLITICAL ENGINEERING: Top level political and institutional coordination. Set up the general orientation of the program and that is why it would have importance in every one of the operations process stages.

* POLITICAL ANALYSIS OF THE WORK AREAS: Each selected zone must be carefully evaluated. The political, economic and social conditions of the zone will affect the promotion strategy for each case.

It also deals with the identification of the organization characteristics and its relations with the state and the different Peruvian society agents, and also with promoting alliances between the organization that develops the program and the different groups that prevail in the organization taking care of their own interest and common objectives.

After these two levels of analysis, it will be possible to design and proceed with the implementation of a strategy of compatible promotion with the zone conditions and the pursued goals.

For that, the formulas and general promotion that had been used in previous experiences will be applied, under the intention that beside a “promotion campaign”, all of this will be for the COMMUNICATION, EDUCATION, ORGANIZATION AND MOBILIZATION of the people.

1.2. THE BASE DEMOCRATIC GOVERNMENTS AND THE INSTITUTIONAL REFORM

Why it is necessary to work with the Base Organization.

The summons powers of the Base Organization allow contact with the people to be viable. This contact allows the “sale” of the institutional reform of free market, to be really effective, which COULD NOT BE DONE IF WE ONLY CARRY OUT THE PUBLICITY IN THE COMMUNICATIONS MEDIUM, BECAUSE THESE DO NOT CREATE THE LINKS BETWEEN THE ENTERPRISE, THE STATE AND THE POPULATION. ONLY THE DIFFUSION CAMPAIGNS AND DIRECT GENERAL PROMOTIONS GENERATE THE LINK BETWEEN THE INSTITUTIONAL REFORM AND THE BENEFICIARIES: THAT IS WHY THE BASE ORGANIZATION IS ESSENTIAL. 

Working directly with the Base Organization allows us to:

* Facilitate the access of our message: it enables to reduce time and cost, it brings credibility to our proposal, giving security to our promoters.

* Gets the consensus of the involved populations concerning the institutional reform of free market.

* Involves the people in the operative process.

1.2.2. THE LEADERS GUARANTEE

Contact with the leading persons.

The organization leader is the key figure that ensures us the people’s participation in the process. They are leaders of important trajectory in their organization or professionals involved in it.

The support of the leaders brings credibility to the project and avoids our association with the negative image of some other political forces of the State.

Dealing with leaders that have the capacity to summon constituents in their district, valley or province, should be considered to be part of the promotional staff.

The access strategy that we use with the leaders has the following characteristics:

* We convince the leader that our proposal promotes the integral change of the society.

* We admit his authority over the base and assure him or her all the political reedits of the base work results.

* We offer the leader a form to cover the opportunity cost for the time that he dedicates to make sure that our proposal is approved in his base.

* We show with specific facts the seriousness of our proposal, which allows him or her to obtain the recognition and confidence of the rest of the community.

We never try to impose the idea on the leader or to buy him or her over. On the contrary, we search for a tuning between our promoters and the leaders political attitude.

However, all of this changes radically when the leaders realize that the new proposal means to guarantee the rights and benefits of the free market system, things that are completely strange for them. They understand that this reform means the request of their social fights like the conquest of the freedom, limiteed government, justice and peace.

1.2.3. THE MAJORITY APPROVAL 

Why the agreements gets signed.

The popular participation is achieved by the approval of the cooperation agreements in general assemblies, a high organism that involves all the bases and reflects the democratic vocation of the Base Organization.

The respect of the inner organization allows us to work in an environment of more legitimacy. Admitting the request and inner rules of the Base Organization allows us to avoid being questioned by the people and secures the development of the institutional reform from the same base.

1.3. COMPONENT TO A DIRECT PROMOTION STRATEGY IN THE RURAL AREA

Following the marketing established approach in past experiences, we have three key elements to a direct promotion strategy.

1.3.1. TAKING OVER THE SERVICE AND MESSAGES

Which is the best way to communicate and publish the efficiencies of the institutional free market reform? Overtake

1.3.2. COMPARATIVE ADVANTAGES

What are the reasons that will give people more advantages with the new institute proposal?

1.3.3. PROMOTION INSTRUMENTS

Which ones and how do the different promotion instruments work between the Base Organization?

We have to notice, however, that each one of these elements has a different dynamic according to the characteristics found in the many “centers or organizations” that we will work with.

1.4. TOOLS TO DEVELOP A PROMOTION CAMPAIGN IN THE RURAL AREA

Previous promotion campaigns allow us to establish that four basic tools exist to develop an effective campaign:

Manage of the formal communications medium

Manage of the native communications medium

Free enterprise capitalism promoters net

Promocional material   

1.4.1. FORMAL COMMUNICATIONS MEDIUM

It consist managing the press, radio and TV through the publication of pieces of information, press notes, interviews and the journalistic covering of success that are related to the new proposal.

1.4.2. NATIVE COMMUNICATIONS MEDIUM

Almost all the visited communities and base organizations use communications mediums that are appropriate to relate their experience and necessities. Most of the time these mediums became more effective than the publication of information in a well know local newspaper or a TV spot.

The informal communications medium that we have identified through almost four years of continued work with the Base Organization of the Peruvian informal sector are:

* Murals, little flags or panels in strategic places.

* Flies.

* Transmission from a strategic place or from a car that goes around the community.

* Messages in popular theater sessions.

This mechanism provokes more interest that publicity ads or TV, because it reaches the daily life of the community and creates comments and opinions among the people.

1.4.3. FREE ENTERPRISE CAPITALISM PROMOTERS NET

The presence of Free Enterprise Capitalism Promoters that come from the same organizations that they work with is also one of our main working tools. They are selected and hired for the organization in charge to promote the benefits of the proposed system among the people and community.

In general, the promoters net allows us, in a previous phase of the promotion campaign, to evaluate the political conditions of the zone that will be worked on and to negotiate the achievement of the work with the leaders of the Base Organization.

During the promotion campaign, the promoters became the permanent link between the corresponding Base Organization and the coordinators of the Promotional Campaign.

1.4.4. PROMOCIONAL MATERIAL

The posters, information  brochures and pamphlets, work guides and all the materials of promotion that are manufactured by the Staff Coordinators and the general Promotional Campaign are distributed by the popular promoters among the leaders and people of the Base Organization.

The distribution of these material allows us to improve the “taking over” of the new proposal for its comparative advantages and lead the debate to the inside of the organization.

1.5. FUNCTIONS AND ACTIVITIES OF THE PROMOTIONAL TEAM

Throughout our experience, we have been able to establish the exclusive functions and activities of our promotional team, which are as follows:

*   Contact each Base Organization.

*    Analyze the political, social and economical nature of each Base Organization.

*   Select the main leaders.

*   Design the Strategy to Access the Target Market.

*   Convene the leading managers to a meeting and explain the scope of the reform.   

*   Conduct meetings where each person is able to democratically choose to be part of the proposed system.

*   Exonerate individual consultations in order to reinforce the image of the new proposal among the population.

*   Organize the meetings.

*   Create the means for the participation of the community in the operational process.

*   Evaluate the needs of the population and hand down the information to the other phases of the process.

*   Qualify the leaders and the population.

*   Provide either collective or individual consultants to the population regarding doubts or faulty leads that may arise.

*   Edit the advertising and training material addressed towards the strengthening of the population’s knowledge about the system (brochures, etc.)

*   To inform the people about the progress of the work conducted.

*   Conduct the follow-up on the files of the other phases of the process, keeping in mind the efficacy of the results offered.

*    Prepare and organize the public ceremony of delivering the results.

*    Explain the political, legal and economical scope of the obtained results.

1.6. PERSONNEL INVOLVED IN A PROMOTIONAL CAMPAIGN

The organizational structure of the promotional team is as follows:

A.    General Coordinator:  General Management of the Campaign and political negotiation with the leaders of the various Base Organizations.

B.   General Promoters:  They evaluate the political conditions of the zone, identify the Base Organizations and participate in the political organization and fieldwork development.