I think the most critical point is the point about social conflicts. The data produced by the human rights ombudsman's office on social conflicts shows a very significant increase in conflicts in Peru over the last decade. It shows consistently that around half of those conflicts are linked to extractive industries.
So that's one set of impacts, and one set of correlations. There's clearly a relationship between the rise of extractive industries and conflict.
There is a set of impacts around environment. It's very debated, but I think the most critical effects relate to generalized concern around the security of water resources. I was in Peru just a couple of weeks ago, in the south, which is very dry, talking to regional presidents and people in government. There's clearly grave concern about that issue. The fear is that extractive industries that need significant quantities of water resources will divert those resources from other activities.
Here we link back to questions around economic diversification. If the water gets used for extraction rather than expanding the agricultural frontier, you not only divert the water use, but also reduce the possibility of economic diversification. So there are critical issues around the water.
I think there is a series of issues around governance as well, and then with this, I'll stop. I don't think, I'm sure, that the relationship between tax transfers to regions, and increases not just in conflictiveness in regions but in the distortion of what municipalities do, is an issue. There are municipalities in the south of Peru that have very large lists of employees who are basically kept on holding contracts that are funded by these tax transfers. They're not working particularly productively; it's a political patronage machine.
I think the importance here is not just that it happens; it's that once patterns are in place, it becomes very difficult to escape from certain patterns of behaviour and certain reputations that get created in these processes. It creates a series of governance problems, looking forward, that I think there isn't an easy solution to yet.
So conflicts, water, and governance would be my three main domains.