Peru: PPK Survives, But Political Crisis Deepens

By Carlos Monge*

Man holds up red and white flag

A protester in Lima holds a Peruvian flag with and image of Alberto Fujimori in prison garb with the phrase “Indulto Es Insulto… Asesino” (“The Pardon is an Insult… Murderer”). / Alan / Flickr / Creative Commons

Peruvian President Pedro Pablo Kuczynski’s commutation of former President Alberto Fujimori’s prison sentence – in exchange for some fujimorista support against his impeachment by Congress on corruption charges – has thrown the country’s politics into a tailspin and increased the prospects of prolonged national crisis.

  • PPK was accused of involvement in corrupt deals with Peruvian and Brazilian construction companies – part of the massive Brazil-based Lava Jato scandal – while he was Minister of Economy and Prime Minister under President Alejandro Toledo (2001-06). By ordering Fujimori’s release, he rewarded Kenji Fujimori and dissident Fuerza Popular MPs, who’d already split with party leader and sister Keiko over her wavering commitment to get their father out of jail at all cost, for their votes against the impeachment.  After emphatically denying he would do so, PPK granted Fujimori a humanitarian pardon on medical grounds, after which the former President experienced a recovery robust enough to resume political activism just days later.

The Fujimori indulto has aggravated deep and longstanding tensions within and among the country’s parties and civil society.  After the impeachment proceedings collapsed, three of PPK`s MPs and three of his ministers resigned in protest, and even the lawyer who defended him against impeachment has denounced his actions as a political scam.  PPK’s popular approval has sunk to 20 percent, and reliable polls show that more than half of the population rejects the indulto.  Protests are growing.  Some 30,000 to 40,000 people marched through Lima on January 11, condemning the collusion of corrupt elites to protect each other, and more demonstrations are planned.

  • Longtime observers in Lima say that the pro-Fujimori Fuerza Popular remains deeply divided as siblings Kenji and Keiko are at each other’s throats over the control of the party and relations with the PPK administration. Even if Alberto and Kenji Fujimori continue to support PPK for a while, open wounds from the close presidential race between PPK and Keiko in 2016 complicate cooperation and in fact may deepen the riff as Keiko’s close collaborators now accuse the PPK camp causing the Fuerza Popular crisis, even denouncing that fujimorista votes were paid for.  Informed speculation is that Keiko will fan the flames of scandal enveloping PPK (even though she reportedly has her own liabilities in Lava Jato) pushing for his fall in hopes of securing early elections rather than waiting until 2021.
  • The left, centrist sectors, and even some conservatives such as Nobel Prize novelist Mario Vargas Llosa have given up any pretense of coexisting with PPK. Human rights organizations and trade unions are demanding Alberto Fujimori be sent back to prison; denouncing the “corrupt alliance” between PPK, the Fujimoris, and the business elites; and insisting that ongoing investigations be pursued no matter who they bring down.  In some sectors, the leftist call for a new Constitution breaking the bond between the state and big business is gaining support.

PPK is a lame duck president with general elections still four years away.  In Congress, which is presided over by a forceful opponent – Luis Galarreta – his base has shrunk to 15 MPs, and he depends heavily on the support of fair-weather friends like Alberto and Kenji Fujimori.  The economy grew 2.7 percent last year, according to the Central Bank, but fell short of targets.  Lava Jato – which has already landed former President Ollanta Humala in jail and prompted extradition proceedings against former President Toledo (living in the United States) – is not going away, with new information expected soon from Brazil.  Popular rejection of the political class, which is seen as corrupt and cynical, will deepen.  Talk in Lima isn’t about if PPK will go, but when.  His fate at this moment appears to depend less on his own cunning and more on the political calculations and unstable relations between the two Fujimori factions and the rest of the parties in Congress and on the strength of street protests.

January 23, 2018

* Carlos Monge is Latin America Director at the Natural Resource Governance Institute in Lima.

Challenging Assumptions about Supercycles in Peru and Latin America

By Claudia Viale and Carlos Monge*

spcc_gp22eco_ilo_-_toquepala

A Southern Copper Corporation train heading towards the Peruvian mines of Toquepala and Cuajone. / David Gubler / Wikimedia Commons / Creative Commons

The commodity-fueled “supercycle” that has propelled Latin American economies for the past decade and a half is ending, but careful analysis of other ongoing cycles will help countries cushion the blow.  ECLAC economist Jean Acquatella has identified four significant global cycles in which Latin America has actively participated as a raw materials exporter through the 20th and 21st centuries: U.S. industrialization; post-war European reconstruction and Japan’s industrialization; the post-1973 OPEC-driven oil boom; and, most recently, urbanization and industrialization in Asia, especially China.  During this fourth cycle – considered a supercycle because of sustained record levels of commodity prices and demand – resource-rich countries in Latin America experienced high growth rates, fiscal abundance, and a decrease in poverty rates as well as an increase in social conflict over the extraction of natural resources.  Slower Chinese growth has since reduced global demand and prices for the region’s minerals and energy, but the impact has been less severe than at the end of previous cycles.

  • José de Echave, of CooperAcción, has emphasized the need to differentiate the recent supercycle from what he terms the “extractive boom,” which started in the early 1990s as a result of the privatization of state mining and hydrocarbons assets and pro-market legislative reforms. His analysis indicates that the extractive boom will outlast the supercycle as long as large-scale projects mature and pro-investment policies continue in place.

The concessions, investments, production and fiscal rent during the past decade and a half in Peru and other countries indeed point to other cycles, some of which have enduring momentum.  Peru has experienced a “concessions cycle” for exploration activities; “investment cycles” as a result of privatization of state assets in the ‘90s and as a result of successful explorations and increased demand and prices starting in 2002; “productive and export cycles” as a result of investments; and a “fiscal cycle” of abundant public revenue.  Several cycles will obviously decline, but the country’s pro-investment policies remain in effect.  The new government of President Pedro Pablo Kuczynski is deepening policies started under former President Humala: reducing corporate income taxes, making environment compliance less onerous, and curtailing the oversight capacities of the Ministry of the Environment.  Investments made in the last five to ten years are, in many cases, only now beginning production.  Thus, as contradictory as it might sound, Peru is poised to double its copper production in the next five years.

The complex differences between “extractive booms” and “supercycles” have deep political implications.  The end of a supercycle could mean a substantial reduction in social conflict between local populations and extractive enterprises and government, but the current “race to the bottom” driven by pro-investment policies could fuel new tensions.  The Las Bambas project in the South Andean region of Apurimac, Peru, illustrates the point.  New legal procedures adopted in 2014 easing approval of environmental impact assessments (EIA) have allowed the Ministry of Energy and Mines to approve substantial changes in the project’s design and EIA without informing the local population and authorities, generating a violent local social reaction.  Available data shows analogous phenomena underway in Bolivia, Colombia, and Ecuador.  The implications will vary for each country, of course, but careful analysis is needed if state policies and civil society activism are to be on solid ground.

October 11, 2016

Claudia Viale and Carlos Monge are Program Associate and Latin America Director at the Natural Resource Governance Institute in Lima.

 

Peru Elections 2016: Back to the Future?

By Jo-Marie Burt*

Peru Elections 2016

Photo Credits: Huhsunqu, Alex Albornoz, Alianza para el Progreso, Fuerza 2011, and Peruanos por el Kambio (modified) / Wikimedia / Creative Commons

Peruvian electoral authorities’ decision last month to disqualify two candidates in this weekend’s first-round presidential election has conjured up the ghosts of one of the most disputed elections in recent Latin American history: the “re-re-election” of Alberto Fujimori in 2000.  Large demonstrations this week against the candidacy of the strongman’s daughter, Keiko Fujimori, were a rejection of the corruption and authoritarianism of the past – as well as the electoral fraud that kept him in power.  The two candidates were disqualified for technical violations of campaign laws.  Newcomer Julio Guzmán, who polls indicated commanded around 20 percent of the vote, was punished because his party failed to follow certain registration norms, and the other, César Acuña, was accused of giving away gifts above newly set limits.  Local observers point out, however, that other leading parties are guilty of similar missteps but have faced no penalties.  Video and testimonials show, for example, Keiko Fujimori attended events where cash “prizes” were handed out.

The disqualifications have put the spotlight on the Inter-American Commission of Human Rights (IACHR), which disqualified candidate Julio Guzmán asked to investigate the decisions.  Postponing the election would be extremely disruptive, particularly because other political groups in Peru, which have benefited from Guzmán’s exclusion, have seized on the immediate political advantage.  The possibility that uneven application of the electoral rules might taint the credibility of the eventual winner is not their immediate concern.

  • The two immediate beneficiaries are Pedro Pablo Kuczynski (known by his initials PPK, which also identify his party, Peruanos por el Kambio), and Verónica Mendoza of the left-wing Frente Amplio. At 15-20 percent each, they are jockeying for second and third place behind Fujimori (30-35 percent), but the real race is in the runoff on June 5 that will take place in the likely event that no candidate wins 50 percent of the vote.  In the 2011 elections, Fujimori won the first round, but lost in the runoff vote to Ollanta Humala.  Fujimorismo has a hard-core following of 25-30 percent of the voting public, but a majority of the population also has a negative opinion of her.

Peruvian elections had come a long way since Alberto Fujimori fled office in 2000.  (In 2009, he was sentenced to prison for 25 years for human rights violations, corruption, and abuse of authority.)  Free and fair elections were held in 2001, 2006, and 2011 – marking the first time in Peruvian history that two democratically elected presidents consecutively handed the presidential sash over to successors.  Whether politically motivated or merely the result of incompetence, electoral authorities’ apparently one-sided handling of this year’s campaign has created an appearance of favoritism discrediting the electoral process itself.  The Secretary General of the Organization of American States, Luis Almagro, has already referred to these elections as “semi-democratic.”  Others speak openly of fraud.  The potential damage is compounded by popular concerns that Keiko Fujimori represents a return to the authoritarian and corrupt tactics that characterized her father’s decade in power.  Her detractors say that she is not simply her father’s daughter; she served as his First Lady and benefited from the corruption of his regime (for example, she testified before Congress that she accepted cash from intelligence chief Vladimiro Montesinos to pay for her college education).  Keiko has acknowledged “errors” (but not “crimes) were committed during her father’s government, and she continues to say her father’s regime was the “best” Peru has ever had.  These were bound to be contentious elections due to the divisive legacy Keiko Fujimori represents, as the massive nationwide demonstrations marking the April 5 “self-coup” on Tuesday made clear.  But the uneven application of the law by electoral authorities raises even more serious questions about Peru’s democratic institutions.

 April 7, 2016

*Jo-Marie Burt is Director of Latin American Studies and Associate Professor of Political Science at George Mason University and a Senior Fellow at the Washington Office on Latin America (WOLA).

El Niño Pummels Peru and Poses Challenges Elsewhere in Latin America

By Abby Lindsay*

Mangrove

Mangrove against waves, Estuary of Rio Tumbes, Peru. Photo Credit: Bruno Locatelli/CIFOR / Flickr / Creative Commons

Although advanced scientific models can better detect the severity of an upcoming El Niño, preparing for the impact of each episode remains a recurrent challenge for many Latin American countries.  El Niños change rainfall patterns in ways that result in extreme flooding in some regions and droughts in others, affecting food and energy production and other economic activities.  In July 2015, satellite and computer modeling predicted that an “extraordinary” El Niño would likely strike in six months – and although not record-breaking, this episode has wreaked havoc in parts of Latin America.  Citizens below the poverty line tend to be hit hardest, as many live on lands vulnerable to natural disasters, such as landslides and flooding, and rely on subsistence agriculture that cannot withstand weather shocks.  Studies by climate and atmospheric scientists argue that El Niños will become more frequent and severe in future years due to rising levels of greenhouse gas emissions, increasing the urgency that governments build resiliency against the associated flooding and droughts.

  • Peru has been particularly affected by this year’s ongoing El Niño, especially in the northern coastal zone. As warming in the middle of the Pacific Ocean causes less upwelling of nutrient-rich waters, fish stocks have declined, damaging an industry upon which Peru relies for 2 percent of its GDP.  Extensive agricultural losses also result from changes in ocean currents and wind patterns that cause droughts in the southern part of the country and a spike in rainfall in the north.  Severe flooding is already having a detrimental impact; local media report that in the Tumbes area, in northwest Peru, 3,000 people have lost their homes and 30,000 have been affected because overflowing rivers have washed out bridges and devastated houses along river valleys.  Landslides have devastated dwellings constructed on the steep, marginal land on the outskirts of cities or in river valleys.
  • Other parts of Latin America are also affected during El Niño. In Central America, the warm Pacific Ocean temperatures are exacerbating existing droughts, which have reduced agricultural yields, while excessive rainfall on the east coast wipes out bridges and houses.  The Andean and Amazonian regions have seen reduced rainfall, leading to worries about forest fires in the rainforest.  The La Plata River basin is getting abnormally high levels of run-off.

With proper warning, governments can take action to mitigate the damage of El Niños.  Receiving predictions last July, Peruvian President Humala declared 14 regions in a preemptive state of emergency and called for preparations.  It is still too early to tell how much these measures have helped, but there is little debate that some preparation is better than none.  Local officials held planning meetings, and the national government provided funding for citizen programs – such as warning the population to move away from flood and landslide zones, and building infrastructure’s ability to withstand flooding and landslides.  In Piura, for example, they dredged part of the river and built diversions to direct water away from populated areas.  Given the predictions that El Niños will continue and worsen in severity, governments need to start thinking about long-term solutions and preparations.  Rather than last-minute preparations, however, governments could consider proactive measures such as conserving or constructing mangroves, wetlands, and riparian buffers that can naturally mitigate flooding; promoting crop diversity with drought-resistant strains; or harnessing water surges for benefits such as aquifer recharging.  Better planning could help Peru and other countries weather future episodes with less emergency scrambling. 

March 28, 2016

*Abby Lindsay is a PhD candidate in International Relations at the School of International Service.  Her dissertation research focuses on global environmental policy, particularly water governance.

Downsides of Decentralization: Lessons from Peru

By Eric Hershberg
Embed from Getty Images
Decentralization – the buzzword among Washington-based specialists on governance during the 1990s and well into the first decade of the 21st century – failed to fulfill technocrats’ lofty expectations wherever it was implemented in the absence of a strong central government.  In one country after another, the World Bank, Inter-American Development Bank, and USAID prescribed political and administrative decentralization as a recipe for deepening democracy and boosting efficiencies in the delivery of governmental services.  An alliance of strange bedfellows united behind the “good governance” cause of decentralization, including grassroots democracy activists of the left who, in the aftermath of authoritarian rule, valued the notion of devolving decision-making authority to the citizenry.  Neoliberal economists, in turn, were attracted to virtually any initiative that would diminish the authority of central states, which they considered to be incorrigible bastions of inefficiency, rent-seeking and patronage.  Cautionary notes from skeptical political scientists were routinely dismissed as anachronistic.  At a seminar in Lima around a decade ago, USAID staff were utterly perplexed by the suggestion that, in the absence of central institutions holding the new regional authorities accountable, the headlong quest to political decentralization in Peru could bring extremely serious adverse consequences for democratic governance.  In their view, the capabilities of the central government had nothing to do with the success of decentralization.

Their enthusiasm was not entirely misplaced – but in many places the reforms eventually backfired.  The authoritarian regime of Alberto Fujimori (1990- 2000) had centralized power excessively, eliminating the handful of regional governments that had been created during the 1980s and ensuring that the social programs they had administered would be entirely dependent on the executive branch.  Fiscal decentralization, already minimal, was eliminated to make provincial municipalities completely dependent on transfers from the central government.  The few regional authorities who survived the Fujimori period were appointed by the president.  When President Alejandro Toledo (2001-06) and his Peru Posible party took office, the need to restore some decentralization was clear, but the two traditional parties – the APRA and Acción Popular –gradually coopted the movimientos regionales, creating clientelistic networks employing mafia-style tactics.  In the Ancash Department, for example, a rogue president is associated not only with corruption scandals – common in regional governments – but also with the assassination of his political enemies, including a political opponent murdered in March.  President Ollanta Humala has frozen the region’s assets, thereby putting a stop to some of the corruption but at the same time delaying needed infrastructure projects and social services.

The emergence of authoritarian enclaves was predictable of fledgling democratic regimes in Latin America, and the phenomenon is not unique to Peru (click here).  Sub-national authorities have access to vast resources to distribute to their clients (and themselves), and all too often the central state lacks the capacity or control over the purse strings to rein them in.  Social scientists have long been aware of the “paradox of decentralization,” and indeed at American University it is a concept that we typically teach freshmen in Comparative Politics – that decentralization only promotes democracy when it follows the consolidation of a strong central state.  This insight escaped the gaze of the technocrats so enamored of decentralization in Peru.  There, as elsewhere, the absence of horizontal accountability – that is, the ability of different branches of government to check one another’s authority – is aggravated by the inability of civil society to hold leaders accountable and allows for the emergence of local mafias in control of sub-national institutions.  Decentralization took on such steam at a time when Latin America’s national governments had been weakened by the economic crisis of the 1980s and the ideological assault on the central state that continued well into the current century.  It will take many years to rectify the damage.  

What does the New Year hold for Latin America?

We’ve invited AULABLOG’s contributors to share with us a prediction or two for the new year in their areas of expertise.  Here are their predictions.

Photo credit: titoalfredo / Foter.com / CC BY-NC-SA

Photo credit: titoalfredo / Foter.com / CC BY-NC-SA

U.S.-Latin America relations will deteriorate further as there will be little movement in Washington on immigration reform, the pace of deportations, narcotics policy, weapons flows, or relations with Cuba.  Steady progress toward consolidating the Trans-Pacific Partnership (TPP), however, will catalyze a shared economic agenda with market-oriented governments in Chile, Mexico, Peru and possibly Colombia, depending on how election-year politics affects that country’s trade stance.

– Eric Hershberg

The energy sector will be at the core of the economic and political crises many countries in the Americas will confront in 2014.  Argentina kicked off the New Year with massive blackouts and riots.  Bolivia, the PetroCaribe nations, and potentially even poster child Chile are next.

– Thomas Andrew O’Keefe

Unprecedented success of Mexico’s Peña Nieto passing structural reforms requiring constitutional amendments that eluded three previous administrations spanning 18 years, are encouraging for the country’s prospects of faster growth.  Key for 2014: quality and expediency of secondary implementing legislation and effectiveness in execution of the reforms.

– Manuel Suarez-Mier

Mexico may be leading the way, at least in the short term, with exciting energy sector reforms, which if fully executed, could help bring Mexico’s oil industry into the 21st Century, even if this means discarding, at least partly, some of the rhetorical nationalism which made Mexico’s inefficient and romanticized parastatal oil company – Petróleos Mexicanos (PEMEX) – a symbol of Mexican national pride.  Let’s see if some of the proceeds from the reforms and resulting production boosts can fortify ideals of the Mexican Revolution by generating more social programs to diminish inequality, and getting rid of the bloat and corruption at PEMEX.

– Todd Eisenstadt

Brazil is without a doubt “the country of soccer,” as Brazilians like to say.  If Brazil wins the world cup in June, Dilma will also have an easy win in the presidential elections.  But if it loses, Dilma will have to deal with new protests and accusations of big spending to build soccer fields rather than improving education and health.

– Luciano Melo

Brazilian foreign policy is unlikely to undergo deep changes, although emphasis could shift in some areas.  Brazil will insist on multilateral solutions – accepting, for example, the invitation to participate at a “five-plus-one” meeting on Syria.  The WTO Doha Round will remain a priority.  Foreign policy does not appear likely to be a core issue in the October general elections.  If economic difficulties do not grow, Brazil will continue to upgrade its international role.

– Tullo Vigevani

In U.S.-Cuba relations, expect agreements on Coast Guard search and rescue, direct postal service, oil spill prevention, and – maybe – counternarcotics.  Warming relations could set the stage for releasing Alan Gross (and others?) in exchange for the remaining Cuban Five (soon to be three).  But normalizing relations is not in the cards until Washington exchanges its regime change policy for one of real coexistence.  A handshake does not make for a détente.

– William M. LeoGrande

A decline in the flow of Venezuelan resources to Cuba will impact the island’s economy, but the blow will be cushioned by continued expansion of Brazilian investment and trade and deepened economic ties with countries outside the Americas.

– Eric Hershberg

In a non-election year in Venezuela, President Maduro will begin to incrementally increase the cost of gasoline at the pump, currently the world’s lowest, and devalue the currency – but neither will solve deep economic troubles.  Dialogue with the opposition, a new trend, will endure but experience fits and starts.  The country will not experience a social explosion, and new faces will join Capriles to round out a more diverse opposition leadership.  Barring a crisis requiring cooperation, tensions with the United States will remain high but commerce will be unaffected.

– Michael McCarthy

Colombia’s negotiations with the FARC won’t be resolved by the May 2014 elections, which President Santos will win easily – most likely in the first round.  There will be more interesting things going on in the legislative races.  Former President Uribe will win a seat in the Senate.  Other candidates in his party will win as well – probably not as many as he would like but enough for him to continue being a big headache for the Santos administration.  Colombia’s economy will continue to improve, and the national football team will put up a good fight in the World Cup.

– Elyssa Pachico

Awareness of violence against women will keep increasing.  Unfortunately, the criminalization of abortion or, in other words, forcing pregnancy on women, will still be treated by many policy makers and judges as an issue unrelated to gender violence.

– Macarena Saez

In the North American partnership, NAFTA’s anniversary offers a chance to reflect on the trilateral relationship – leaving behind the campaign rhetoric and looking forward. The leaders will hold a long-delayed summit and offer some small, but positive, measures on education and infrastructure. North America will be at the center of global trade negotiations.

– Tom Long

The debate over immigration reform in Washington will take on the component parts of the Senate’s comprehensive bill. Both parties could pat themselves on the back heading into the mid-term elections by working out a deal, most likely trading enhanced security measures for a more reasonable but still-imposing pathway to citizenship.

– Aaron Bell

The new government in Honduras will try to deepen neoliberal policies, but new political parties, such as LIBRE and PAC, will make the new Congress more deliberative. Low economic growth and deterioration in social conditions will present challenges to governability.

– Hugo Noé Pino

In the northern tier of Central America, despite new incoming presidents in El Salvador and Honduras, impunity and corruption will remain unaddressed.  Guatemala’s timid reform will be the tiny window of hope in the region.  The United States will still appear clueless about the region’s growing governance crisis.

– Héctor Silva

Increased tension will continue in the Dominican Republic in the aftermath of the Constitutional Tribunal’s decision to retroactively strip Dominicans of Haitian descent of citizenship.  The implementation of the ruling in 2014 through repatriation will be met with international pressure for the Dominican government to reverse the ruling.

— Maribel Vásquez

In counternarcotics policy, eyes will turn to Uruguay to see how the experiment with marijuana plays out. Unfortunately, it is too small an experiment to tell us anything. Instead, the focus will become the growing problem of drug consumption in the region.

– Steven Dudley

Eyeing a late-year general election and possible third term, Bolivian President Evo Morales will be in campaign mode throughout 2014.  With no real challengers, Morales will win, but not in a landslide, as he fights with dissenting indigenous groups and trade unionists, a more divisive congress, the U.S., and Brazil.

– Robert Albro

In Ecuador, with stable economic numbers throughout 2014, President Rafael Correa will be on the offensive with his “citizen revolution,” looking to solidify his political movement in local elections, continuing his war on the press, while promoting big new investments in hydroelectric power.

– Robert Albro

Determined to expand Peru’s investment in extractive industries and maintain strong economic growth, President Ollanta Humalla will apply new pressure on opponents of proposed concessions, leading to fits and starts of violent conflict throughout 2014, with the president mostly getting his way.

– Robert Albro

Peru: Will Humala pursue deeper reforms?

By Marcela Torres

President Humala / Photo credit: OEA - OAS / Foter.com / CC BY-NC-ND

President Humala / Photo credit: OEA – OAS / Foter.com / CC BY-NC-ND

Facing growing public discontent, President Humala is attempting to navigate through yet another cabinet shuffle while struggling to advance reforms of the police, education, and health care.  The President’s approval rating has dropped from 65 percent soon after his inauguration in 2011 to an all-time low of 27 percent.  He swore in his fourth prime minister, César Villanueva, last week, after telling Prime Minister Juan Jiménez – in office for just 15 months – that it was time to “refresh” the cabinet.  Jiménez said he had been contemplating resigning for months, but recent polls suggest that growing crime and corruption, the two main issues citizens perceive to be afflicting the nation, forced him out.

Protests against Humala’s government have been growing.  In July, 8,000 demonstrators in Lima expressed their rejection not only of Humala’s government, but of the entire ruling political class.  Although still small compared with protests in other parts of Latin American, they were of a magnitude not been seen in the capital city since 2000, when protestors took the streets demanding President Fujimori´s resignation.  Unlike the rural indigenous protests over extractive industries, which have become commonplace under the administration, the participation of the middle class was evident and crucial in the July protests.  Social anger was sparked by a video showing members of the main political parties secretly negotiating highly controversial appointments involving individuals implicated in corruption.  Persons who had allegedly violated human rights were selected as the human rights ombudsman and as judges of the Constitutional Tribunal.  The uproar motivated Congress to immediately annul the secretly negotiated appointments, known as the repartija, which for many Peruvians resembled one of the traditional means by which the authoritarian government of Alberto Fujimori had avoided institutional checks and balances by placing regime-friendly officers in power.

The recent Peruvian protests are similar to social mobilizations taking place in Brazil, Chile and Colombia – other countries in which economic growth has not translated into broad public satisfaction.  While many protests in these countries have focused on the quality of social services, the recent Peruvian demonstrations have offered a critique of the country’s widespread corruption and backroom politics.  Peruvian demonstrators came from diverse sectors of society, including labor union members, students, artists, TV actors, gay rights activists, without clear leadership or coordinated demands.  This amorphous type of protest appears particular in Peru because civil society largely avoids political activism as a consequence of the stigmatization of collective social action after the defeat of Shining Path in the ‘90s.

Humala’s most recent cabinet reshuffle and his earnest but ineffective reform efforts suggest he appreciates the depth of the social discontent – now with middleclass support and the participation of youth.  Peruvians are not willing to tolerate the traditional corruption associated with the country’s politicians.  The lack of coordination among social movements that can connect rural and urban discontent, as well as the absence of political parties within the Peruvian landscape that can effectively mediate between citizens and the government, might limit the scope of social protests to isolated outcomes. If protestors come up with a clear agenda through legitimate leadership, however, President Humala will have to deepen his reforms or risk irrelevance through the remainder of his presidency.  Superficial changes appear unlikely to appease the middle class and civil society.

What Can Be Learned from the Humala Government?

By Rob Albro

President Humala inaugurating electric power in the rural district of Moro - Ancash Photo credit: Presidencia Perú / Foter.com / CC BY-NC-SA

President Humala inaugurating electric power in the rural district of Moro – Ancash Photo credit: Presidencia Perú / Foter.com / CC BY-NC-SA

As a candidate in Peru’s 2006 presidential election, one-time military coup plotter and current president Ollanta Humala presented himself as an anti-business socialist and nationalist happy to be a member of the “family” of left-leaning Latin American governments led by Venezuela’s Hugo Chávez.  In his second successful bid for office in 2011, Humala sharply changed direction and embraced a combination of pro-business and anti-poverty measures reminiscent of Brazil’s center-left Lula.  Humala’s shifts are a sign of the times in the Andean region:  a non-ideological search for how best to build democracies and grow national economies, while effectively redistributing wealth.

Driven by its mining sector and a commodity export boom, Peru’s economy has tripled in size over the past decade and is currently one of the best performing in the world.  Foreign investment is flooding in, particularly to mining, hydrocarbons, and big infrastructure projects – and Humala is now considered an “investor darling.”  While backing off electoral promises to nationalize water, electricity, mining and other sectors, Humala has created a new Ministry of Development and Social Inclusion and increased the budget for social redistribution and welfare measures to Peru’s poorest by 50 percent.  So far Humala has channeled the budget surplus of Peru’s export boom, including successful negotiation of a $1.1 billion increase in mining royalties in 2011, toward reducing the nation’s poverty rate by 29 percent.  And yet, at present there are more than 250 ongoing social conflicts in Peru, and Humala’s government has been accused of failures of “consultation,” often by grassroots and indigenous protestors opposed to Peru’s mining policies.  In response Humala has reshuffled his cabinet multiple times.  Skeptics suggest that his approval rating – currently 60% – will last only as long as the boom enables his top-down social spending.

Humala’s presidency suggests the limits of viewing current regional leaders through a comparative Chávez-or-Lula lens.  Arguments over the best conditions for “foreign direct investment” in the region often miss the different conditions under which it occurs or purposes to which it might be put.  Humala’s pragmatism demonstrates how distinct parts of government need not reflect a single unifying ideological or normative idée fixe.  Liberal democratic institutions and market freedoms increasingly coexist alongside alternative policies of social redistribution as a part of democratic enfranchisement in the Andes.  When conflict has broken out, however, Humala’s government has been willing to forego consultation with local communities to insure the economic resources it needs to continue its redistributive policies.  The challenge for him to achieve the best balance between competing democratic priorities will continue.  Humala’s government is an opportunity to explore new democratic institutions in Latin America, as with a recent CLALS research project on participatory democracy

Chávez’s Passing: In the Hemisphere’s Words

"Chavez" | by Donmatas1 | Flickr | Creative Commons

Chavez | by Donmatas1 | Flickr | Creative Commons

Below are excerpts from statements made by leaders of the Western Hemisphere upon learning of the passing of Venezuelan President Hugo Chávez.  The tone of the U.S. President and Canadian Prime Minister’s remarks is different from the Latin Americans’.

Barack Obama (U.S.A.)
“As Venezuela begins a new chapter in its history, the United States remains committed to policies that promote democratic principles, the rule of law, and respect for human rights.”

Stephen Harper (Canada)
” I would like to offer my condolences to the people of Venezuela on the passing of President Chávez.

“Canada looks forward to working with his successor and other leaders in the region to build a hemisphere that is more prosperous, secure and democratic.

“At this key juncture, I hope the people of Venezuela can now build for themselves a better, brighter future based on the principles of freedom, democracy, the rule of law and respect for human rights.”

Enrique Peña (México)
“Lamento el fallecimiento del Presidente Hugo Chávez. Mis más sentidas condolencias a su familia y al pueblo venezolano”.

Ollanta Humala (Perú)
“Adiós Comandante y amigo Hugo Chávez. Mis sentidas condolencias a su familia y a todo el pueblo venezolano”.

Ricardo Martinelli (Panamá)
“Deseamos expresarle nuestro pésame al Pueblo Venezolano y a la Familia Chávez por el sensible fallecimiento del Presidente Hugo Chávez”.

Evo Morales (Bolivia)
“Duele, pero también queremos decir a los pueblos, fuerza y unidad ahora más que nunca. Estamos destrozados”.

Juan Manuel Santos (Colombia)
“Lamento profundamente la muerte del presidente de Venezuela Hugo Chávez Frías. Nuestras sinceras condolencias”

Dilma Rousseff (Brasil)
“Estamos de luto por la pérdida de un gran amigo. Va a dejar un hueco en ‘la historia y en las luchas’ de América Latina”.

Sebastián Piñera (Chile)
“Fue un hombre profundamente comprometido con la integración de América Latina. …  Sin duda teníamos diferencias, pero siempre supe apreciar la fuerza, el compromiso y la voluntad con la cual el Presidente Chávez luchaba por sus ideas”.

 

Peru: Humala’s Difficult Balancing Act

Photo: Peruvian mine | Mihai (clandestino_20) | Flickr | Creative Commons

Peru’s new cabinet installed in July – President Ollanta Humala’s third since his inauguration a year earlier – faces the daunting task of sustaining national development while increasing social enfranchisement.  The reshuffle came amid loud criticism of a crackdown, which killed five people, on protests against the proposed $5 billion Conga mining project in Cajamarca.  The incident underscored the difficulty for Humala as he endeavors to implement a dual strategy of capitalizing on the growth potential of Peru’s mining industry – primarily gold and copper (60 percent of exports) – while respecting community concerns about the environmental consequences of extraction.  Mining wealth is needed to improve the lives of ordinary people –28 percent of Peruvians live in poverty – but unlike preceding governments this administration has committed itself to consultation with residents of localities that will be affected directly.    The new prime minister has announced suspension of the Conga project until the U.S. mining company involved provides better environmental guarantees.

Humala’s popularity has plummeted.  Despite new laws increasing Peru’s mining revenue, the creation of a new Ministry of Social Inclusion, and a new Prior Consultation Law, indigenous protesters feel betrayed by Humala.  They accuse him of continuing the aggressive extractive policies of his predecessor, Alán García, and insist his administration has not given adequate attention to concerns of local communities on issues such as the integrity of the water supply in zones affected by the mining ventures.  Recent signs of a resurgence in violence by the Sendero Luminoso (Shining Path) guerrillas and of setbacks in efforts to curtail the influence of the narcotics trade are also eroding Humala’s support.

Humala narrowly won the presidency as a center-left candidate, committed to creating a framework for the more equitable distribution of the wealth generated by Peru’s natural resources.  Now, some of his political allies say he has courted foreign investment for the mining sector without adequate consultation, and further protests seem likely.  Humala’s challenge is not unlike that of other countries, including Bolivia and Ecuador, trying to balance between these competing interests.  His success or failure will have an impact beyond Peru’s borders, as South American countries dependent on commodity exports struggle to walk the tightrope between satisfying foreign investors and domestic electorates.