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Fragility and Rule of Law in Peru

Fragility and Rule of Law in Peru
According to the latest report by the Freedom House Index, Peru has successfully upgraded from a partly free country to a free one in 2022. These improvements are mainly due to the country’s ability to carry out an election for a new president and Congress which managed to ease political tensions in the short term. However, problems regarding fragility and rule of law in Peru have reappeared throughout the year, triggering the detention of Pedro Castillo, the Peruvian president, in December 2022.

Political fragmentation and corruption have severely damaged the public trust in the government, which is worsening the economic situation in the country. Peru was making a positive comeback from the crisis that the pandemic generated. However, recent political instability created a slowdown, which is having very negative consequences.

Political Instability in Peru

Back in 1992, former president Alberto Fujimori carried out a coup d’état which surprisingly increased his popularity and helped his reelection in 1995. Despite his third reelection in 2000, his numerous accusations of committing crimes against humanity, his atrocious sterilization policies and the cases of corruption and favoritism finally had consequences and Fujimori resigned from office and subsequently faced imprisonment.

An attempt to escape the Fujimori “dictatorship” has marked the political reforms that have taken place in Peru since the beginning of the 21st century. A closed and centralist political system that limited citizens’ participation apparently characterized the Fujimori era. Therefore, in order to “democratize” the electoral system, the reforms incentivized the creation of numerous informal political organizations which lacked institutionalization. This has led to the deficient functioning of the electoral system, due to the absence of stable, lasting and serious political parties and the consequent lack of confidence in the electoral system.

Six Presidents Since 2018

This situation has transformed the present Peruvian politics into a polarized arena that leaves little space for consensus and forces voters into extreme political ideologies in an attempt to achieve durable solutions. Since 2018, Peru has had six different presidents. This instability is due both to the political polarization that does not allow for a real absolute majority, as well as to the 1993 Constitution, which allows Congress to remove the president from office for “lack of morality.”

This peculiarity worsens the political fragility of the country, which has become even worse after the detention of Pedro Castillo for a failed coup d’état. The former president decided a coup d’état was his only way to escape his serious accusations of corruption. However, what happened is quite the opposite, because he now faces accusations of rebellion and could spend as long as 20 years in prison. Dina Boluarte has replaced Castillo, making her the first female president of Peru.

Corruption and Rule of Law

Added to the constant corruption of politicians, a corrupted judiciary often debilitates Peru’s well-functioning of democracy. Peru’s judiciary is one of the most corrupt institutions in the country, according to the Freedom House. This adds to the problem that the constant tensions generated between Congress and the Executive caused. In 2018, a huge corruption scandal emerged after audio recordings revealed Parliament members, business elites and members of the Magistrates Council as responsible for at least favor-trading activities. After this scandal, the country dissolved the Magistrates Council. Its new replacement is the National Board of Justice which focuses on a more transparent selection of members in an attempt to avoid future corruption.

Fragility and rule of law in Peru are major problems for certain groups of society. COVID-19 has brought clarity to the fact that indigenous Peruvians suffer discriminative treatment regarding health care. The country needs to urgently include health care policies that include indigenous groups in order to reduce inequalities in morbidity rates.

The Effects on Poverty and Job Creation

Peru is currently going through a political situation that threatens the country’s economy to fall into recession. The good news is that according to data from the Central Reserve Bank in Peru, in 2021, the country’s GDP grew by 13.2% and unemployment dropped from 7.2% in 2020 to 4.8% in 2021. Despite the economic collapse that the pandemic caused, it is true that Peru has recovered especially fast compared to other countries in Latin America. Therefore, the permanent political instability which causes constant changes in power positions and lack of reliability has a relatively low impact on the country’s economy. In fact, Peru is a rare case in Latin America because, despite the poor performance of the Executive, the economy has remained relatively strong throughout the years.

However, the apparent economic recovery has not been beneficial for all Peruvians. Unfortunately, Peru is the most food-insecure country in South America. More than half the population in Peru lives in a food insecure situation, double the amount compared to pre-pandemic figures. From these figures, more than 6 million people live in extreme conditions in which food is unavailable for days.

Having access to clean water is also a struggle for many Peruvians. Almost 8 million people in Peru have no access to drinking water. Peru is a country rich in water, however, its distribution is unfavorable for those who need it most. Those who do not have direct access to water receive it through tanker trucks for twice the price. This forces many families to ration water which often doesn’t meet the minimum sanitation standards, which can lead to major health problems.

The Protests and the Future of Fragility and Rule of Law in Peru

The country has yet to discover what to expect after the detention of Castillo. However, the country has already plunged into chaos which the protests caused. The protests originated as a result of built-up tension due to the executive’s inability to govern and the new presidency of Boluarte. Many citizens have rejected her because Peruvians did not elect her and are now demanding proper national elections.

The future will show the extent to which these developments have affected the Peruvian economy. What is certain is that such an unstable and changeable government is incapable of prioritizing the problems of the most vulnerable and that is something that has to change.

– Carla Tomas
Photo: Unsplash

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Eliminating Poverty in Peru

Poverty reduction in Peru
Peru, a small country of 32 million located on the western coast of South America, has made significant reductions in poverty in the 21st century. Over the last 20 years, Peru’s GDP quadrupled and its poverty rate decreased by nearly 30% by 2019. Peru’s rapidly growing economy, combined with substantial social welfare programs, resulted in a drastic increase in quality of life for poor and middle-class Peruvians. But notably, these gains largely concentrate in urban areas. While the Peruvian economy was not exempt from a COVID-19 induced recession, expectations have determined that it could rebound in 2021. Here is a review of how things stand in regard to eliminating poverty in Peru.

Eliminating Poverty in Peru

Prior to the COVID-19 pandemic, Peru experienced 14 consecutive years of poverty reduction. Its economy ranks as one of the 21st century’s fastest-growing economies due to the high demand for its natural resource exports of copper, petroleum and zinc. While Peru’s middle class enjoys substantial growth due to its booming economy, inequality persists, especially in rural areas. A web of social welfare programs has been integral to Peru’s successful war on poverty as well as increased access to education and financial institutions. Previous administrations successfully balanced growth and poverty reduction in Peru, but more work is necessary.

Rural Poverty in Peru

Despite Peru’s strong growth and successful anti-poverty initiatives, much of the rural population still suffer material deprivation. In 2014, Peru’s rural poverty rate was nearly 50% with an estimated 15% of rural children suffering from chronic malnutrition.

Past administrations created several initiatives to expand welfare access in rural areas. However, Peru’s diverse geography and mountainous rural terrain make them difficult to implement. Rural Peruvians experience limited access to social programs and high transaction and transportation costs. Additionally, they enjoy far less economic opportunity or connection to growing markets than their urban peers.

Rural poverty concentrates most widely among the indigenous population, who often live in geographically isolated areas. Exacerbating the urban-rural cleavage are conflicts between the government and indigenous rights groups over mining and energy projects in the Andes. This conflict highlights the friction between extractive policies that constitute the base of Peru’s growing economy and the lived experience of rural Andeans who bear the cost of these industrial initiatives.

Peru’s New President

Pedro Castillo of the socialist Free Peru party won the June 2021 election. His election marked a paradigm shift in Peru’s political landscape. The former teacher and son of rural peasants, Castillo won a close election against Keiko Fujimori, daughter of Peruvian dictator Albert Fujimori who ruled the country from 1990 to 2000. Fujimori claimed that election fraud was responsible for Castillo’s victory, but the Peruvian election authorities ultimately dismissed her claims. Representing his rural constituency, Castillo declared that “Votes from the highest mountain and farthest corner of the country are worth the same as votes from San Isidro and Miraflores” in response to the baseless claims of election fraud.

Castillo promises to aggressively fight poverty and increase the state’s role in the economic response to the COVID-19 pandemic. Castillo’s posture as an anti-establishment populist will make his economic revolution difficult in the face of elite opposition. However, Peru’s difficult year increased the appetite for radical reforms to the neoliberal economy. Peru has experienced the highest deaths per capita of any country in the world and has seen its poverty rate increase due to the 2020 recession. Castillo’s five-year term will be a new chapter for a country that has not seen a truly left-wing president in a generation.

Snowballing Success in Eliminating Poverty in Peru

Peru has made impressive gains against poverty in recent decades. However, a multitude of factors has prevented these gains from undergoing equal distribution among urban and rural Peruvians. COVID-19’s impact led to the election of a socialist president who has pledged to take aggressive steps toward poverty reduction, especially in rural areas. While Peru’s poverty rate is less than half of what it was two decades ago, there is still a long road ahead to ameliorate the material deprivation that nearly 7 million Peruvians experience.

– Will Pease
Photo: Flickr