Politics Torpedoes Growth
A casualty of the politics surrounding Alejandro Toledo's first year as president, Pedro Pablo Kuczynski succeeded
in growing Peru's economy, sealing a deal with the IMF and issuing a historic international bond. But the public failed to embrace his free market ideas.
A political career in Latin America can be brutally short
these days, especially for those associated with the free
market policies the region has struggled with since the 1990s.
Last year, street fighting in Buenos Aires brought down the
government of Fernando de la Rúa. More recently, bloody
riots in Peru and Paraguay broke out to protest privatizations.
The damage in Arequipa, Peru's second city, was so bad that
Alejandro Toledo, Peru's increasingly unpopular and isolated
president, postponed his privatization program and reshuffled
his cabinet, kicking out supporters of free market policies he
had brought in to reassure markets that he would not indulge in
populism. The collapse of Toledo's cabinet in the wake of the
riots with the departure of the interior minister, foreign
minister and Prime Minister Roberto Dañino, prompted
Toledo to replace these pro-market stalwarts with more pliable
appointees. Pedro Pablo Kuczynski, economy and finance...
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