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.

Peru’s Frente Amplio: The Emergence of a Post-Extractivist Left

By Carlos Monge*

OperacionesYanacocha

An abandoned gold mining project in the Cajamarca region, Peru / Wikimedia / Creative Commons

The surprising emergence of the Frente Amplio (FA), a coalition of political parties, social organizations and independent activists, in Peru’s recent presidential and congressional elections signals the first significant support for the Peruvian Left since the collapse of the Izquierda Unida in the 1980s.  The Left was not able to present its own alternatives in the ‘90s, the early 2000s, and again in 2011.  In October 2015 barely 13 percent of Peruvians knew about FA’s internal election to select presidential candidates.  Veronika Mendoza had the support of only 1 percent of intending voters, and over 60 percent of Peruvians did not even know who she was.  Nevertheless, FA ended up receiving 18.74 percent of the vote in the first electoral round, coming in third and only a couple of points behind Pedro Pablo Kuczynski (PPK), who secured 21.05 percent and ended up defeating the Fuerza Popular’s candidate, Keiko Fujimori, to become President for the 2016-2021 period.

FA’s “post-extractivist” program has been key.  Breaking away from the nationalist redistributive programs of leftists in Venezuela, Ecuador, Bolivia, Brazil, and Argentina, FA espouses economic diversification and tax reform rather than more mineral or hydrocarbon exports to sustain economic growth and public incomes.  FA also emphasizes the need to protect the environment and renewable natural resources for future generations and to recognize indigenous rights to territories, autonomy, direct political representation and effective consultations.

  • These are not only electoral campaign ideas. Indeed, FA local activists and national leaders have maintained staunch opposition to emblematic mining projects such as the Conga project in the northern Cajamarca region and the Tía María project in southern Arequipa.  In the same way, FA is denouncing that the new government is trying to lower air quality environmental standards to ease foreign investments in mineral smelters and has harshly criticized the new Minister of Production for abandoning the National Plan for Productive Diversification launched by the outgoing Ollanta Humala administration.
  • Frente Amplio is grounded in social movements that have long confronted extractivist projects. Veronika Mendoza left President Humala’s Nationalist Party in 2012 in a dispute over his repressive response to socio-environmental protests around mining projects in the highlands of her native Cusco.  Tierra y Libertad, FA’s largest party, has its roots in the Cajamarca rondas campesinas resistance against the Conga project.  Another factor is that the end of the commodities “super cycle” has moved extractive rents off center stage.  Even in Venezuela the official discourse is now moving in the direction of economic diversification.

Frente Amplio is not alone in Latin America in attempting to build a post–extractivist platform, but it seems to be the region’s most successful.  Similar policies were at the heart of the presidential campaign of Alberto Acosta and a coalition of social and indigenous organizations in Ecuador.  And in El Salvador, the Farabundo Martí government is also keeping extractivist temptations at bay.  But Acosta did not manage to get significant support or to build a stable political alternative, and El Salvador is not a major commodity exporter.  The importance of the FA experience is that it happens in a significant mineral and gas producer, that it has had immediate electoral success, and that it can become a permanent political player in Peruvian democracy.  FA and PPK will probably agree on issues such as the fight against corruption, crime, and violence against women, but they will certainly disagree over macroeconomic and sector policies, such as taxes.  Also, FA has denounced PPK for his call to lower air pollution standards and for his authorization to large fishing factories to operate up to 5 km off the coast, leaving very little for artisanal, small scale, internal market-oriented fishing activities.  Where this ends up is anybody’s guess, but this is certainly a process worth keeping an eye on.

August 29, 2016

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

Peru: Serious Challenges Ahead

By Michael Baney*

CLALS Keiko protest Peru

Photo Credit: harimarachinv / Flickr / Creative Commons

Peru’s presidential election, won by Pedro Pablo Kuczynski, bore the hallmarks of Peru’s distinct brand of democracy – political parties that are mere temporary electoral vehicles with little ideology; strong anti-incumbent sentiment; and the absence of a serious challenge by the left.  Neither Kuczynski’s Peruanos Por el Kambio (PPK) nor Keiko Fujimori’s Fuerza Popular is a party with any true structure.  The fact that the acronym of Kuczynski’s party forms his initials and that Keiko Fujimori’s party uses a large K as its symbol underscores the personal nature of these parties and of politics in Peru.  For the fourth time in a row, not only did the governing party not remain in power; it did not field a candidate – symptom of the deep distrust of institutions and unhappiness with the status quo in the country.  The lack of a serious challenge by the left was also repeated.  Although Socialist Verónika Mendoza’s effective handling of a press challenge to her heritage gave her a surge in nationalist and indigenista support, her campaign faltered when her economic policies came under scrutiny.

The election also marked the emergence of a new generation of young antifujimorista activists who combined efforts on social media with traditional protests to undermine Fujimori’s electability.  These efforts included the production and online dissemination of Su Nombre es Fujimori, a documentary that links Keiko to some of the worst abuses of her father’s government, as well as pillorying her distribution of Keiko-branded tupperware (called tápers in Peru) among the rural poor in an apparent vote-buying effort.  Online voices ridiculed her by rewriting reports on the number of votes by which she trailed Kuczynski as indicating the number of additional tápers that she should have distributed, and the hashtag #KeikoTAPERdiendo – a colloquial pronunciation of “Keiko is losing” – was widely used to track reporting on the election.  Whereas protests traditionally were organized by older demonstrators linked to Marxist parties, this year a Facebook-based group organized two days of nationwide marches of tens of thousands of mostly younger antifujimoristas.

The weakness of Peru’s parties will complicate President Kuczynski’s efforts to govern, as it has with past presidents.  Kuczynski’s narrow victory was largely due to the effort of this new form of activism – which he did not lead, which is not necessarily loyal to him, and to which he does not have any strong allegiance.  His ability to continue to benefit from such efforts designed to shut fujimorista politicians out of office will be extremely constrained, particularly because his lack of support in the fujimorista-majority congress will likely compel him to adopt a friendlier attitude toward his former rivals.  Kuczynski has previously stated that he would sign a law allowing imprisoned former President Alberto Fujimori, Keiko’s father, to serve out his prison sentence at home, a move that he may consider to secure the cooperation of the fujimorista congressional bloc to move proposed legislation forward.  Such a move would be a major blow to Peru’s human rights movement, which spent many years campaigning to imprison the former leader, and it would also infuriate the antifujimoristas, bringing them out onto the streets once again.  Fujimorismo and antifujimorismo may remain the most salient political positions in a country where economic progress has not improved people’s trust of the system, a recipe for further polarization that could overwhelm the Kuczynski government should it attempt to straddle the two positions in an attempt to overcome the weaknesses inherent in a system with no parties.

June 13, 2016

*  Michael Baney is Political Risk Analyst at Allan & Associates in Washington, DC.

Peru’s Election: Close Vote Count, Divided Nation

By Cynthia McClintock*

Keiko Kuczyinski

Photo Credits: Venezualan Government / Public Domain and Diario La Primera / Wikimedia Commons

Peru’s National Office of Electoral Processes (ONPE) will not announce the final results of Sunday’s run-off presidential election until later this week, but the current statistical tie is already setting the stage for serious tensions.  The ONPE’s official count, with about 93 percent of votes counted, puts Pedro Pablo Kuczynski (Peruanos por el Kambio) at 50.32 percent and Keiko Fujimori (Fuerza Popular) at 49.68 percent.  Some local observers say that late-arriving vote tallies from rural areas could give Fujimori the edge, but others point out that recent quick counts have reliably predicted final results.  The campaigns may have aggravated tensions on Sunday night, when Fujimori’s spokesperson proclaimed her victory, and Kuczynski called on loyalists to “defend the vote” and “to be vigilant that they not steal votes from us.”

The campaign underscored the country’s enduring polarization over Fujimori’s imprisoned father, Alberto.  Although Alberto Fujimori was convicted on charges of human rights violations and corruption, and although his 1990s government became increasingly authoritarian, he is still perceived by many Peruvians as the savior who restored order and broke the back of the Sendero Luminoso guerrillas.   Primarily for this reason, Keiko Fujimori won almost 40 percent of the votes in the first round on April 10; Kuczynski was the runner-up with 21 percent, narrowly defeating leftist candidate Verónika Mendoza (Frente Amplio), with 19 percent.

  • The last two weeks were a roller coaster. At the time of the first round, Kuczynski had held a slight lead over Fujimori, but only a week ago was trailing her by about five points.  An international economist and banker who had lived for long periods in the United States, Kuczynski lost support in part because, after the first round, he spent eight days in the U.S., exacerbating perceptions that he was more gringo than Peruvian, while Fujimori traveled to remote areas of Peru.  She claimed that, whereas her opponent favored big business, she favored small and medium business.  Also, in the first debate, Kuczynski, who is 77, appeared at a loss to counter Fujimori’s attacks.
  • In the last week, however, it was Kuczynski with the momentum. He effectively communicated integrity and a commitment to democracy just as memories of the corruption and authoritarianism during the government of Fujimori’s father were revived.  A scandal implicating the head of her party, Joaquín Ramírez, in money laundering gradually took a toll, especially when her vice-presidential candidate was believed to have orchestrated the broadcast of a doctored audiotape in an effort to clear Ramírez’s name.  Fujimori appeared to believe that “the best defense is a good offense,” but her increasingly confrontational style and dismissive tone may have been a factor in the decision by third-place Mendoza to strongly endorse Kuczynski.  In the second debate a week ago Sunday, Kuczynski emphasized that Fujimori could not be trusted to keep her key pledge to fight crime when Ramírez and other leaders of her party were under criminal investigation.

The presidential campaign has reflected deep polarization and tensions since at least March, when electoral authorities disqualified two important candidates – Julio Guzmán and César Acuña – for violations of party and electoral regulations. Guzmán’s party had not kept to the letter of its internal party statutes and Acuña handed out cash at a campaign rally.  The disqualifications prompted OAS Secretary General Luis Almagro to label Peru only “semi-democratic.”  A key problem was that the laws were not consistently enforced; most saliently, Fujimori, captured on video passing out prizes at a campaign event, was not disqualified.  Strains are likely to remain high this week, and could grow worse after ONPE’s final announced tally at the end of the week.  Fujimori’s followers, embracing the polls showing her lead prior to election day, may cry foul if a Kuczyinski victory is declared.  Many of Kuczyinski’s and Mendoza’s followers, for their part, intensely fear a return to Fujimorismo.  In this context, it is not impossible that disqualified candidates Guzmán and Acuña and their supporters could call for a total do-over.  Although serious, sustained instability remains unlikely, Peru’s 2016 election is by far its most problematic since the country’s return to democracy in 2001.

(Previous analyses on the Peruvian election are available here and here.)

June 6, 2016

* Cynthia McClintock is Professor of Political Science and International Affairs at George Washington University.

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).