Peru election candidates clash on economy, illegal mining
While investors hailed the result of the first round of presidential elections in April, the second round campaign has highlighted glaring differences between the proposals of the two rivals, who will face off on June 5.
Both former congresswoman Keiko Fujimori (41) and former investment banker and ex-finance minister Pedro-Pablo Kuczynski (77) have pledged to respect the free-market model Peru has been following since 1990, but they differ on several key issues.
REACTIVATING THE ECONOMY
Kuczynski's Peruanos por el Kambio movement, which signed up former JP Morgan investment banker Alfredo Thorne as chief economic advisor, intends to push through tax breaks and scrap a host of legislation passed by President Ollanta Humala's government, blamed for increasing bureaucracy and blocking investment projects.
Kuczynski, known by his initials PPK, has identified 270 unnecessary regulations, compared with only nine a decade ago, according to Thorne. However, his party, which won 18 congressional seats to 73 for Ms Fujimori's Fuerza Popular party, will have to seek a consensus in congress to do so, Thorne said.
"PPK is committed to overturning all the excess regulations," Thorne said in a meeting with foreign correspondents this week. "We place greater emphasis on the private sector than our rivals, who place greater emphasis on the role of the state."
Ms Fujimori, who recruited Elmer Cuba, an economist from Lima-based think-tank Macroconsult, and former conflicts office director Vladimiro Huaroc, proposes an increase in public spending in infrastructure equivalent to as much as 1.5% of GDP. She has also said her government will renegotiate the Camisea gas fields contract.
ILLEGAL MINING, CONFLICTS
Kuczynski proposes creating a private mining bank that would buy gold from small-scale miners and provide financing, training and tax breaks for those who agree to formalize their concessions.
A Fujimori government would overturn Humala's legislation, halt military operations against illegal miners in the Amazon jungle and instead seek to directly tackle underlying problems in rural communities where protests have blocked US$60bn in mining, energy and infrastructure projects around the country, according to Huaroc.
"Social conflicts are one of the most serious problems in the country," Huaroc told foreign press this week. "The issue is to reorganize an efficient state that has no representation in the interior of the country."
CRIME
Fujimori's proposals to fight a recent crime wave include building prisons for hardened criminals at an altitude of over 4,000m in the Andes and putting armed forces on the streets. Earlier this year the government was forced to declare a state of emergency in the port of Callao and has sent troops to the port city.
Kuczynski criticizes his rival's proposals as excessively harsh and instead proposes reorganizing and increasing salaries for the police force, in addition to investing more in intelligence. He also proposes greater investment in potable water, electricity, education and health services in impoverished areas to ease the poverty and frustration that fuels crime in many parts of Peru.
ATTACKS
The second round of the election campaign has also displayed each candidate's weaknesses and unleashed a string of accusations.
Ms Fujimori, daughter of jailed former President Alberto Fujimori, has had to fend off accusations that the corruption and human rights abuses that marred her father's presidency will return, especially in light of charges that 11 of her elected congressional representatives are being investigated for money laundering, forcing her party general secretary to resign. Nor is it clear how Mr. Fujimori managed to put all four of his children through US universities on his presidential salary.
Kuczynski, former president of CS First Boston, has had to deal with criticism regarding awarding the Camisea project at knockdown rates, especially as he was chairman of Camisea pipeline operator Transportadora de Gas del Perú between stints in government. He also lost ground in the polls by visiting the US for a week after the first round, while Ms Fujimori continued her campaign tour.
Exit returns are traditionally released once polling stations close at 4pm local time Sunday. About 22mn Peruvians are expected to vote.
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