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Mining and Tourism

Urban Transformations in the Intermediate Cities of


Cajamarca and Cusco, Peru
by
Griet Steel

In recent decades, the exponential growth of tourism and mining in Cusco and
Cajamarca has made these two intermediate cities in the Peruvian Andes important on the
global economic scene. Foreign direct investment in these industries has attracted internal
and transnational migrants who now dominate the lucrative real estate and labor markets
in these cities. Residents have been driven to the peripheries, and there is a sharp contrast
between those who have access to the benefits of mining and tourism and those who do not.
The article shows that these intermediate cities can no longer escape the spatial segregation, economic exploitation, and inequality that used to be associated almost exclusively
with metropolitan centers. These supposedly livable and harmonious urban environments
are increasingly jeopardized by the growing imbalance between the livelihoods of local
residents and those of transnational elites.
En las dcadas recientes, el crecimiento exponencial del turismo y la minera en Cusco
y Cajamarca ha hecho de estas dos ciudades medianas de los Andes peruanos importantes
urbes en el escenario econmico global. La inversin extranjera directa en estas industrias
ha atrado a migrantes internos y trasnacionales quienes ahora dominan los mercados
lucrativos de bienes races y labor en estas ciudades. Los residentes han sido empujados a
la periferia, y existe un marcado contraste entre quienes tienen acceso a los beneficios de
la minera y el turismo, y quienes no. El artculo demuestra que estas ciudades medianas
no pueden ms escaparse de la segregacin espacial, la explotacin econmica, y la
desigualdad que antes se asociaba exclusivamente con los centros metropolitanos. Estos
supuestamente habitables y armoniosos ambientes urbanos se encuentran cada vez mas
perjudicados por la creciente falta de balance entre el sustento de los residentes y el de las
lites trasnacionales.
Keywords: Mining, Tourism, Intermediate cities, Segregation, Social fragmentation

During the last two decades of the twentieth century, Latin American governments switched from import-substitution industrialization to a new model
of development. Trade liberalization, financial deregulation, tax reform, and
Griet Steel is a cultural anthropologist and holds a postdoctoral fellowship at the Institute of
Development Policy and Management in Antwerp. This article benefitted from comments on a
former version of the paper that was presented at the 10th International SIEF Congress, People
Make Places: Ways of Feeling the World, Portugal, Lisbon, April 17-21, 2011. The author thanks
fellow student, Kaat Houtman, for her very important contribution of empirical material on the
case of Cajamarca. The author also thanks Dr. Christien Klaufus (CEDLA) for her useful reflections on the theoretical framework of the paper and the challenging conversations on changes in
intermediate cities in Peru and Ecuador.
LATIN AMERICAN PERSPECTIVES, Issue 189, Vol. 40 No. 2, March 2013 237-249
DOI: 10.1177/0094582X12468866
2013 Latin American Perspectives

237
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238LATIN AMERICAN PERSPECTIVES

privatization were to give a fresh impetus to the economic development of the


continent, attract foreign direct investment, and increase trade with other
regions of the world (Aguilar Ibarra, Reid, and Thorpe, 2000). Tourism and
mineral exploitation are two of the economic activities that fit within this
neoliberal development rhetoric. Both national governments and international
organizations have high expectations of these export industries, considering
them an important opportunity to link to international markets and participate
in the global economy. However, the impact of mining and tourism on national
and local development is a matter of debate. Critics say that not everyone benefits equally from mining and tourism (Bebbington, 2011; Bebbington et al.,
2008; Brohman, 1996; Bury, 2005; Mowforth and Munt, 2003 [1998]): They argue
that these industries tend to reinforce patterns of socioeconomic inequality.
Most studies of the development impact of mining and tourism have adopted
a rural perspective. Some have examined the socioeconomic effects of tourism
on rural development by focusing on community-based tourism and ecotourism (Jones, 2005; Okazaki, 2008; Scheyvens, 2002). Others have explored the
social and geographic implications of the expansion of mining into rural areas
(Farrell et al., 2004; Horowitz, 2006; Kitula, 2006). Although some studies have
analyzed the impact of tourism on the urban habitat (e.g., studies on heritage
tourism), only a few (e.g., Steel, 2012; Torres and Momsen, 2004) have focused
on the way tourism has shaped urban developments. Hinojosa and Bebbington
(2008) maintain that mining has become an important urban concern as a result
of its detrimental impact on the quality and supply of water and the air and
noise pollution it causes, although they do not elaborate upon these effects.
These studies have set the stage for more in-depth research on the subject.
This paper analyzes the impact of the growth of mining and tourism on the
urban landscape of two intermediate cities in the Peruvian Andes, Cajamarca
and Cusco. In recent decades, the exponential growth of tourism and mining
has increased the importance of these cities on the global economic scene.
Cajamarca has been launched into the global economy by the presence of
Newmonts Yanacocha (known as Minera Yanacocha or MYSA), whereas
Cusco has been integrated into the global market by the flows of tourists drawn
by the regions historical and cultural heritage. Global forces such as mining
and tourism have resulted in increasing socio-spatial segregation and inequality in the Latin American urban landscape. Whereas evolving patterns of spatial segregation and inequality were initially confined to metropolises, mining
and tourism have introduced urban fragmentation to smaller cities such as
Cajamarca and Cusco, accentuating the contrast between the rich and the poor,
between those who have access to the benefits of mining and tourism and those
who do not.
The main argument of this article is based on fieldwork and secondary data
collection. The case study of Cusco is based on 18 months of ethnographic
research between 2003 and 2008 and some follow-up field visits. The main
focus of the research was on street vendors and the way they could benefit
tourism. It involved 100 qualitative in-depth interviews with street vendors,
municipal authorities, tourists, and development workers and participant
observation in the main tourist public space of Cusco. These data were complemented by secondary data from academic studies, policy documents, and
newspaper articles that describe the recent urban developments in the city. The
case study of Cajamarca is based on two short field visits to the city in July 2009
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Steel / MINING AND TOURISM 239

and August 2010 and builds on the research of the Masters student Kaat
Houtman, which focused on the impact of mining on urban developments in
the city. Here in-depth interviews, participant observation, partial life histories,
and desk study methods were triangulated.
The article is structured as follows: The first section discusses urbanization
and social fragmentation in Latin American cities, especially intermediate ones,
and the way in which they are influenced by the introduction of new actors
such as foreign entrepreneurs, expatriates, and tourists. The second section
focuses on the relation between the growth of the mining and tourism industries and urban developments in Peru. The third section analyzes the impact of
the mining industry on the urban environment of Cajamarca, and the fourth
section examines tourism and its influence on the urban landscape in Cusco.
The final section offers some empirical conclusions and theoretical reflections
on social exclusion and spatial segregation in Latin American cities.
Urbanization and Social Fragmentation
in Latin American Cities
Whereas the urbanization of Latin America in the twentieth century took
place primarily in metropolitan and capital cities, urbanization processes there
have shifted to periurban areas and intermediate cities. Some 37 percent of the
population now lives in urban areas with less than half a million inhabitants
(Satterthwaite, 2007). Further urbanization of the continent is expected to take
place not in large metropolitan areas but in intermediate cities (Portes and
Roberts, 2005; UN-Habitat, 2010). Latin American urban studies predominantly address large metropolitan areas and megacities and the myriad of
problems associated with them (e.g., Angotti, 1996; Gilbert, 1996; Koonings and
Kruijt, 2009; Moser, 2009; Perlman, 2010). They have recently drawn attention
to the experiences of the urban population with marginalization, stigmatization, social inequalities, and the physical creation of class barriers (Caldeira,
2000; Fay, 2005; Perlman, 2010; Rodgers, 2004). Although the figures show progress in poverty reduction, poverty in Latin American cities has become even
more structural, segmented, and exclusionary (Ward, 2004). Latin America
now has the most unequal distribution of wealth of all regions in the developing world (UNHabitat, 2010: 45). Although the urban poor are no longer
excluded from formal institutions, they are still faced with embedded structures of social exclusion that severely reduce their livelihood opportunities
(Roberts, 2010). While the boundaries between centers and peripheries may be
challenged, in terms of socioeconomic opportunities the distinction between
poor and more prosperous residents is still very sharp (Perlman, 2010). Several
writers have observed a rising number of gated communities in Latin American
cities (Borsdorf, Hidalgo, and Snchez, 2007; Coy, 2006). These communities
contribute to spatial segregation, socially divided environments, and growing
inequality (Roberts, 2010). The physical creation of class barriers in the form of
what Caldeira (2000) calls fortified enclaves has become ever more evident
in the contemporary Latin American urban landscape.
However, few writers have explored urban transformations in intermediate
cities and incipient urban areas (for an exception, see Klaufus, 2010). To the
extent that their dynamics have been studied, these cities are regarded as the
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240LATIN AMERICAN PERSPECTIVES

antithesis of large metropolitan areas. Because of their human scale and their
secondary position in national urban hierarchies, they are generally considered
livable and harmonious places that offer the potential for prosperous urban
development (Bolay and Rabinovich, 2004; Herzog, 2006). Although they are
very heterogeneous, this article focuses on urban transformations in these
intermediate cities, where foreign entrepreneurs, expatriates, and tourists are
introducing global lifestyles, transnational practices, information technology,
and cultural flows. It scrutinizes the effects of the often contradictory and conflicting claims these transnational elites (see Beaverstock and Boardwell,
2000) make on the city. Intermediate cities are the places where current trends
of urbanization are the most obvious and as such deserve more attention in
Latin American studies. Focusing on the transformations in Cajamarca and
Cusco caused by mining and tourism, this article examines the sharp contradictions that these industries have brought about and the challenges and frictions
that these intermediate cities are facing. It shows that although in terms of
size these cities cannot be considered real metropolises, in terms of urban
dynamics, transformations, and frictions they show some comparable
characteristics.
Mining, Tourism, and Urbanization in Peru
In recent decades, the mining and tourism industries have expanded tremendously throughout Latin America. Peru is near the top of the list of countries in which a boom in mining and tourism has constituted the basis for an
export-oriented economy. Peru already ranks sixth in the world in levels of
mining investment (Bebbington and Bury, 2009: 17296), but the Peruvian
Ministry of Energy and Mines has announced that it will invest a further
US$51.49 billion in new mining projects (Andina, 2011). Bebbington, Bebbington,
and Bury (2010: 309) report that while in 1990 mining claims were virtually
nonexistent in Peru, by 2007 claims had been made to almost 3.5 million hectares of the country.
The tourism industry in Peru underwent a huge boom in the 1990s and is an
important source of outward-oriented growth. In 2004, tourism accounted for
over 3.3 percent of the countrys gross domestic product, amounting to over
US$1.142 million (UNWTO, 2006). After mining and oil, tourism is Perus most
important export product (MINCETUR, 2007).
These developments have changed the countrys socioeconomic landscape
dramatically (Bebbington, 2011; Bebbington et al., 2008; Bury, 2005; Steel, 2008;
Ypeij and Zoomers, 2006). First of all, the countrys most lucrative industries
are in foreign hands, and local participation is often very limited. As in other
developing countries, Northern expatriates and high-skilled professionals
occupy most of the top managerial positions (Sinclair, 1998: 31). Because revenues from tourism and mining return to foreign countries, developments in
these sectors do not necessarily boost the Peruvian national economy. In addition, investments by foreign companies often constitute a direct threat to the
livelihoods of local populations. The expansion of mining does not occur in
empty territories and often conflicts with small-scale farming and other livelihoods of rural people (Hinojosa and Bebbington, 2008). Arce (2008: 42) notes
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Steel / MINING AND TOURISM 241

that the most recent report from Perus Defensora del Pueblo [Ombudsmans
Office] places mobilizations against foreign direct investment as the most common type of social conflict in Peru today and that 46 percent of these conflicts
are related to mining.
The rapid expansion of mining and tourism has channeled the urbanization
processes in several Peruvian cities. Intermediate cities that offer access to
important mining and tourism sites such as Cajamarca and Cusco have undergone greater population growth than the capital, Lima. Between 1993 and 2007,
the population of Cajamarca, for example, grew by 4 percent while that of metropolitan Lima by 2.1 percent (INEI, 2008). The growth of these intermediate
cities is driven by national and international investments in mining and tourism. Foreign direct investment in these industries has attracted internal and
transnational migrants, and the arrival of foreign investors and international
firms has fragmented the urban landscape.
Mining-Induced Migration and Urban
Developments in Cajamarca
Cajamarca is located in the northern highlands of Peru and has 162,326
inhabitants (INEI, 2008: 63). Cajamarca has grown significantly, especially
since one of the largest gold mining companies in Latin America, Minera
Yanacocha, began operations in the region (Bury, 2005: 231). Mining is the most
prominent driver of its 4 percent growth rate.
Mining-induced displacement (Downing, 2002) and Yanacochas large-scale
land acquisition resulted in migration from the countryside to the city. Because
Yanacocha uses open-pit mining, it requires huge areas of land. It started
acquiring land in 1992 in preparation for exploration (see Bebbington, 2007;
Lambrigger, 2007; Sosa and Zwarteveen, 2009) and is now the largest landowner in the department, making it very difficult for campesinos to maintain
plots of land for cultivation. Although they have organized in various ways to
defend their livelihoods (Bebbington et al., 2008), most of them have sold their
land to Minera Yanacocha and moved to remote communities or to the city of
Cajamarca. The following prcis of an interview with Teresa1 (June 2009) exemplifies the flow of peasants to Cajamarca and its consequences for their livelihood strategies.
Teresa is a middle-aged, married woman with five children. In 1993, her
husband sold 30 hectares of their land in Combayo to Minera Yanacocha and
used the money to buy a house on the outskirts of Cajamarca. When interviewed, neither she nor her husband had found a job in the city. They had
always been peasants who worked the land, and they did not know how to
make a living in the city. Teresa indicated that life in the city was really difficult
because it was impossible to grow their own food there. The family depended
on two sons who still had a plot of land outside the city. Thus the link with the
countryside was the households most important livelihood strategy.
Other peasants who sold their land and moved to Cajamarca have been
more successful than Teresa at making a living in the city. For example, several
of them perform informal economic activities such as street vending and day
labor in the construction sector (Houtman, 2009). Others have found low-skilled,
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242LATIN AMERICAN PERSPECTIVES

low-paid, and mostly temporary jobs working for Minera Yanacocha (Herrero
Izquierdo, 2004), but most of them are in a vulnerable position in their new
socioeconomic environment. They live on the poor outskirts of the city, and
their livelihoods depend heavily on the linkages they maintain with relatives
in the countryside.
Another significant migration flow to Cajamarca is made up of national and
international professionals who have been contracted by Minera Yanacocha.
As Bury (2007: 385) says, the mining companys operations draw on highly
skilled mining engineers, heavy machinery operators, and professionals from
outside of the region. As such, increasing numbers of high-skilled professionals from Lima, Arequipa, and other coastal cities in Peru come to Cajamarca to
work in the mining industry. The city also accommodates a small number of
international migrants who have settled there either permanently or temporarily. These foreign professionals mainly come from Australia, Canada, South
Africa, and the United States, and they hold the highest positions in the mining
company (Bury, 2007). They contribute to the international aura of the city by
introducing foreign currency, consumption goods, and lifestyles.
Many of Minera Yanacochas high-skilled employees have settled in Baos
del Inca, a residential zone a 15-minute drive from the city center. Especially
international migrants live in this residential community. The arrival of these
new elites increased the communitys population by 20 percent between 1993
and 2002 (Bury, 2007). High land and property prices make it very difficult for
local people to gain or maintain access to this zone of the city; only the mining
elites can afford to buy homes there.2 Access to consumption and entertainment in this residential zone is reserved for people with very high incomes, as
the shops, restaurants, bars, and other places of entertainment charge international prices (Lambrigger, 2007).
Through what Tilly (2006) calls opportunity hoarding, the new mining elites
dominate the most lucrative real estate and labor markets. They are also able to
access high-quality education at the international school, Davy College, which
opened its doors in 1995. All teaching at Davy College is in English; Spanish is
an additional course. The school fee is about US$500 a month. The children of
the mining elites have enrollment precedence because of an agreement between
the mining company and the college. This, coupled with the high school fees,
means that education at the school is reserved for the children of the mining
elites. They monopolize the best education opportunities in town and thus contribute to the growing discrepancy between the wealthy external actors and the
local working classes (Houtman, 2009).
These transformations have resulted in increasing inequality. One resident
told that people in Cajamarca started to feel their poverty when the mining
company arrived: Before, poverty was not as striking as it is now; now we can
really see the poverty. If there were no Yanacocha, the poverty would be less
visible. People would not feel it as much as they do now (David, interview,
June 2009).This informant clearly shares Tillys (2006) interactive view of poverty, as he considers the interaction between those who have access to the benefits of the mining industry and those who do not as the source of growing
inequality in the region. Poverty is not new to the people of Cajamarca, but it
has become more evident because the company generates advantages for some
and not for others. The enormous growth of Cajamarca has led to increasing
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Steel / MINING AND TOURISM 243

social and spatial segregation, causing the inhabitants to describe it as an


expensive but poor city (Jorge, interview, July 2009) or a city of contrasts
(Navarro Sarmiento, 2007).
Tourism and Urban Transformations in Cusco
Cusco is located in the southern Andes of Peru at approximately 3,300 meters
above sea level. Although the city is larger than Cajamarca, it has undergone
less explosive growth. In 2007 it had 348,935 inhabitants (INEI, 2008: 63). The
historical heritage of the Inca and the colonial past, in combination with its
attractive geographical situation in the Andes, has made the city one of the
most popular tourist destinations in Latin America. Because of a lack of alternative industries, tourism is the citys most important income-generator (Flores
Ochoa and Van den Berghe, 2000). It has been a booming business in Cusco
since the 1990s, and it is growing faster there than anywhere else in the country.
Each year the city attracts more tourists than there are residents. This tourist
influx has significantly reshaped the urban landscape.
The most significant demographic and spatial changes occurred in the citys
historic center. Tourism-induced displacement has driven out most of the residents of this zone (Hernndez Hurtado, 2009). Private houses have made way
for tourist facilities such as hotels, pubs, restaurants, nightclubs, travel agencies, and arts and crafts shops. The local population generally does not have the
money to pay the excessive land and property prices and is often denied access
to tourist venues. When I invited Peruvian friends to go for drinks or a meal in
the historic center, they pointed to several tourist places to which they had been
denied access because of being Peruvians, who do not consume as much as
tourists do. They are therefore forced to move out of the historic center to live,
shop, eat out, and find entertainment (Estrada Ibrico and Nieto Degregori,
1998). As a consequence, the historic center has been transformed from a residential zone into a huge commercial center that is accessible only to those who
can afford to pay the international prices of the luxury hotels, restaurants, and
souvenir shops (Chion, 2009).
The municipality of Cusco has put a lot of effort into creating a clean, safe,
and attractive environment for tourists. One of its main objectives is preventing
the destruction of the historic center of the city. As one official explained, the
authorities have to make an extra effort to satisfy the tourists needs by investing large amounts of money in public order and security (Hector, interview,
June 9, 2005). In addition, they have to protect their archaeological sites and
cultural patrimony in collaboration with UNESCO. As part of this effort the
authorities have tried to clean Cusco of urban undesirables such as local poor
people, beggars, and street vendors, who are historically associated with indecency and considered a potential threat to the tourists sense of comfort and
safety. The municipality of Cusco considers it better to hide this uncivilized
side of Cusco from potential foreign industrialists and investors (Seligmann,
2004: 23). One of Cuscos municipal councilors once explained that the presence of poor local people, and especially street vendors, might harm the modern image of the city (Lucho, interview, July 2007):

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244LATIN AMERICAN PERSPECTIVES

Because the tourists come to visit our nation and our town, they are not allowed
to buy from street vendors. They do not like buying on the street, because
things in their countries are more organized, so they always try to buy in formal establishments, where they can make a complaint if necessary. That is their
guarantee.

The local anthropologist J. A. Flores Ochoa argues that the center is becoming a tourist ghetto in which the majority of the local population participate
only on the margins.
Foreign investors and entrepreneurs have also left their imprint on the historic center. Increasing numbers of foreign transnational corporations and
global chains such as McDonalds and Hilton Hotels and Resorts have launched
development projects in the city (Chion, 2009). As does the mining industry,
these foreign companies employ Northern expatriates to occupy the highly
paid professional and managerial positions. These transnational migrants play
a significant role in spatial segregation processes in the city by making the real
estate market less accessible to local investors. In 2008, for example, one of the
oldest coffee shops (El Ayllu) in Cuscos main square had to close its doors. A
local journalist wrote that it had had to make way for a Starbucks, which could
afford to pay much higher rent, and went on to say that it had become virtually
impossible for local investors to buy property in the historic center (Guerrero
de Luna, 2008).
These socio-spatial transformations of the historic city center have been
accompanied by developments in the rest of the city. The real demographic
expansion took place in the impoverished residential neighborhoods known as
pueblos jovenes outside the tourist center.3 Even as in Cajamarca, these neighborhoods are home to a large number of rural dwellers who came to the city in the
hope of finding better livelihood opportunities and to people who can no longer afford to live in the tourist center (Hernndez Hurtado, 2009). In general,
the residents of these neighborhoods have precarious living conditions and
face various infrastructural restrictions (Amilcar Snchez Morales, 2002). They
have to struggle to access the labor market, public transport, rubbish collection,
water and electricity supplies, sanitary services, and health services (see De
Vries, 1991; Villegas Ormachea, 1986). Streets that are not tarred become mud
puddles during the rainy season and raise large clouds of dust during the dry
season. Access to running water is a general problem; households generally
have to share a collective tap that provides running water for only a few hours
a day. Villegas Ormachea and De Vries attribute these water problems to an
insufficient capacity to install water services, uneconomical water use in tourist
areas and other affluent neighborhoods, and insufficient pressure in the water
installations to pump the water up the hills.
For some residents of these neighborhoods, tourism offers low-paid, insecure jobs such as mass-producing earrings, street vending, cleaning hotel
rooms, or working as porters on tourist hiking tours (Steel and Ypeij, 2005).
Several indicated that they relied on their relatives agricultural products when
they could not make ends meet in the city. For example, Domrica said, All I
can do [referring to a situation in which she ran out of money] is go to my home
in the countryside and get potatoes, corn, and wheat (interview, September
2004). People living on the periphery of Cusco have not broken their ties with

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Steel / MINING AND TOURISM 245

the countryside. This is why Flores Ochoa and Tomoeda (1992: 13) argued that
the Andean city should see itself in permanent relation to the rural environment that surrounds it.
While tourists generally only stay for a few days in the places they visit, their
presenceeven as the presence of transnational migrants in the city of
Cajamarcahas introduced Northern consumption, expenditure, and behavior
patterns to the city. These developments have set the stage for a spatially segmented city of wealthy tourist bubblessafe, protected, and normalized environments (Urry, 1990)surrounded by lower-class neighborhoods. Because of
these wealth discrepancies and uneven developments, I consider Cusco a schizophrenic city in which the affluence of tourists and other transnational elites
stands in sharp contrast to the poverty of a large proportion of the population.
Conclusion
The Latin American urban landscape has been shaped by the effects of globalization and the internationalization of capital in a great variety of ways. This
article has highlighted some of the differences and similarities in this process
by examining urban transformations in two intermediate cities in Peru. Because
of the presence in them of tourism and mining, respectively, Cusco and
Cajamarca function as significant nodes in the global economy, and their daily
connection with the global world has been translated into particular urban
developments. Tourism-oriented urbanization in Cusco has consumed urban
space, whereas mining-induced urbanization in Cajamarca has manifested
itself in the occupation of urban space by mining elites. Cuscos historic center
has been transformed into a global town in which transnational lifestyles and
enterprises dominate the urban landscape. The local population has been
driven out to make way for these forms of transnational consumerism. In contrast, the city center of Cajamarca has preserved its provincial appearance. The
impact of the mining industry has been manifested in the development of highclass residential, educational, and shopping enclaves on the periphery of
the city.
Although the two cities are not comparable in appearance, the impacts of
these socioeconomic and physical transformations have resulted in comparable
polarized and fragmented urban environments. In both cities, there are growing disparities between those who have access to global interconnectivity and
those who do not. Only the mining and tourism elites seem to have access to
Northern consumption and expenditure patterns and to the lucrative real
estate markets. The majority of residents are forced to make a living on the
periphery. In the words of Roberts (quoted in Ward, 2004), they are being
reduced to second-class citizens who are disadvantaged with regard to
access to urban space and public services.
These urban dynamics are similar to those that characterize Latin American
metropolises. The socio-spatial landscapes of Cajamarca and Cusco have
become socially fragmented spaces in which the transnational and national
elites dominate the economic and political agenda. It is intermediate cities that
can no longer escape the spatial segregation, economic exploitation, and poverty that used to be associated almost exclusively with metropolitan centers.
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246LATIN AMERICAN PERSPECTIVES

These supposedly livable and harmonious urban environments are increasingly jeopardized by the growing imbalance between the livelihoods of local
residents and those of transnational elites.
These conclusions are relevant to further research on urbanization and social
fragmentation in cities in Peru and elsewhere. Minera Yanacocha is one of the
first large-scale mining operations in Peru, but neoliberal reforms are attracting
new mining multinationals to the country (Bebbington, Bebbington, and Bury,
2010), and tourism is a booming business that is spreading across the country.
The Peruvian state is now promoting the Amazon as an alternative site for
tourism development. Urbanization in this region is relatively new, but it is
advancing rapidly and in an uncontrolled way. For example, between 1993 and
2007 the population of the city of Puerto Maldonado grew by 4.8 percent (INEI,
2008: 63). The mining industry is also a driver of this urban expansion in the
Amazon. Relatively few studies have focused on urban developments in this
region and their impact on the local population. Study of the consequences of
mining and tourism in the Amazon and elsewhere could help fill this gap and
stimulate discussion of how to create harmonious cities that equitably meet the
needs of different urban actors.
Notes
1. All names in this article have been changed to conceal the identities of the informants.
2. A high-skilled employee receives US$8001,000 a month, while the average income of an
inhabitant of Cajamarca is roughly US$90 a month (Navarro Sarmiento, 2007). The mining elites
who participated in this research indicated that they earned US$3,0006,000 a month.
3. The slums on the outskirts of cities designated by the military regime in 1968 as pueblos
jovenes are places where the settlement forms part of the urban area, the occupation of the land
is not carried out through the legal transfer of propery titles or through renting, [and] the settlement is characterized by a basic and insufficient infrastructure (De Vries, 1991: 69).

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