Politics Torpedoes Growth

Politics Torpedoes Growth


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.

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