PERU´S PRESIDENT TRIES TO BOW OUT EARLY / THE FINANCIAL TIMES

Peru's president tries to bow out early

Vizcarra’s early election proposal heightens uncertainty as the economy suffers

Gideon Long in Lima


Martin Vizcarra has called early elections, pledging a 'new era' in the corruption-tainted country © AP


In a region where presidents often cling to power as long as they can, Martín Vizcarra has a different idea.

Mr Vizcarra, who has been in office for a year and a half, announced last month that he would seek to end his term a year early, taking Congress with him. He said Peruvians deserved the chance to renew their corruption-tainted political class and embark on “a new era”.

In a country with a history of endemic corruption and three ex-presidents under investigation for alleged graft, the president’s move went down well with voters. It could lead to polls in April to choose a new leader and a new Congress.

“This way he can bow out to the applause of the crowd,” said Alicia del Aguila, a political scientist at Lima’s Pontifical Catholic University. “And maybe he’s also thinking ‘If I go out on a high now then I can seek re-election in five years’ time’.”

Mr Vizcarra is likely to put his proposal to Congress in the coming weeks. If approved, it will go to a referendum, where Peruvians would almost certainly back it. One recent opinion poll suggested that this is what three-quarters of voters want.

If his proposal is rejected, Mr Vizcarra might request a vote of confidence in his government, which could lead to the dissolution of Congress. Alternatively, his opponents might seek to impeach him to save themselves. Some have already urged him to resign over his role in the granting of a licence for a large copper project in southern Peru.

Since becoming an unlikely president in March 2018 when his predecessor Pedro Pablo Kuczynski was forced to quit, Mr Vizcarra, a relative outsider in Lima, has made the fight against corruption his top policy. It has gone down well with the public: the president’s approval ratings are at 60 per cent and jump each time he fires another broadside at Congress and the judiciary.

Mr Vizcarra’s supporters say he is genuinely convinced that Peru needs to overhaul its corruption-ridden institutions — “even if it means we all have to go”, as he says. Under rules that he drew up last year, neither he nor members of congress can seek immediate re-election.

Mr Vizcarra’s move may also reflect the fact that his political power is limited. He has no political party, and Congress seeks to block him at every turn. “His level of public support is very high — an approval rating of more than 60 per cent,” said Rodolfo Rojas, a partner at Sequoia, a political advisory in Lima. “Unfortunately for him that doesn’t translate into votes in Congress.”

Faced with that reality, Mr Vizcarra may have calculated that it is best to quit now rather than limp to the end of his mandate in 2021, analysts said.

The early election move comes as the fallout from the Odebrecht corruption scandal in Peru continues. The country’s last four presidents — Mr Kuczynski, Ollanta Humala, Alan García and Alejandro Toledo — have all been investigated for alleged links to the disgraced Brazilian construction company, which has admitted paying huge bribes throughout Latin America.

The main opposition leader, Keiko Fujimori, is in preventive custody, accused of taking bribes from Odebrecht, while her father Alberto Fujimori, the country’s authoritarian president from the 1990s, is in prison serving a sentence for corruption and human rights abuses.

With Mr Vizcarra barred from running and his main rival behind bars, the electoral field is wide open if Peru does go to the polls next year.

The president has yet to indicate who he would support.

For years, Peru’s political turmoil had little impact on the economy, which averaged annual growth of 4.4 per cent for the past decade.

But with Mr Vizcarra unable to push through reforms, the economy is starting to suffer.

The central bank has cut its growth forecast for this year by 0.6 percentage points to 3.4 per cent and brought interest rates down to the lowest level in nine years to boost the economy. “Peru’s intractable political infighting is costing investor sentiment,” said Eileen Gavin, senior Americas analyst at Verisk Maplecroft.