[News] Peru - Humala's Big Win
Anti-Imperialist News
news at freedomarchives.org
Tue Jun 7 11:35:49 EDT 2011
http://www.counterpunch.org/weisbrot06072011.html
June 7, 2011
Game Change in Peru?
Humala's Big Win
By MARK WEISBROT
The victory of left-populist candidate Ollanta
Humala in Peru's election is a "big f*ng deal,"
as Vice President Joe Biden famously whispered to
Obama on national TV in another context. With
respect to U.S. influence in the hemisphere, this
knocks out one of only two allies that Washington
could count on, leaving only the right-wing
government of Chile. Now Brazil, Argentina,
Venezuela, Bolivia, Ecuador, Paraguay, Uruguay
and Peru have left governments that are more
independent of the United States than Europe is.
And Colombia under Manuel Santos is now siding
with these governments more than with the United States.
This means that regional political and economic
integration will proceed more smoothly; although
it is still a long-term project. On July 5, for
example, heads of state from the whole hemisphere
will meet in Caracas, Venezuela, to proceed with
the formation of CELAC, (Community of Latin
American and Caribbean States). This is a
regional organization that includes all countries
except the United States and Canada, and which
no matter what anyone says for diplomatic
purposes -- is intended to displace the
Organization of American States (OAS). The new
organization is a response to the abuse of the
OAS by the United States (which controls most of
the bureaucracy) for anti-democratic purposes,
most recently in the cases of Honduras and Haiti.
These institutional changes, including the vastly
expanded role of UNASUR (the Union of South
American Nations), are changing the norms and
customs of diplomatic relations in the
hemisphere. The Obama Administration, which has
continued the policies of "containment" and
"rollback" of its predecessor, has been slow to
accept the new reality. As a result, it does not
have ambassadors in Bolivia, Venezuela and Ecuador.
The election is also important for Peru, for a
number of reasons. As conservative Peruvian Nobel
literature laureate and politician Mario Vargas
Llosa said, Humala's win "saved democracy."
Former president Alejandro Toledo said, "The
people have won, democracy has won, the memory of
the people won. The people have opted for
economic growth with social inclusion." Indeed it
would have sent a terrible message to Peruvians
and the world if the daughter of someone who is
in jail for multiple political murders were
elected president. Although she made some efforts
to distance herself from his crimes, she was
still running on his name and legacy, and with the help of his advisers.
The election is interesting for other reasons.
First, it is another example of the voters going
against the vast majority of the country's rich
and elite, including the most influential of that
group the major media. Leftists may criticize
Humala for some of the promises that he made
(e.g., no nationalizations) in order to get the
support of some political actors. But it remains
clear that he was not the candidate of Peru's
rich and powerful. This is one of the great and
nearly unprecedented things about democracy in
South America that has happened repeatedly in
recent years that those who control most of the
income, wealth, and means of communication in a
country can be defeated in an election. We are
still a long way from any such result in our own
presidential elections in the United States.
It is also interesting that Peru's traditional
elite were defeated in both the first and
second rounds of the election -- despite record
economic growth over the last decade. GDP growth
has averaged 5.7 percent annually since 2000,
about the highest in the region. To give credit
where credit is due, these governments (Alejandro
Toledo's and Alan García's) got their most
important macroeconomic policies fiscal,
monetary, and exchange rate basically right,
which has not been the norm in the neoliberal
era. They also responded to the world recession
with counter-cyclical policies and minimized the
economic damage. As would be expected from the
economy's rate of growth, there were some
improvements in peoples' lives, including many
poor people: The official poverty rate declined
from 55 percent in 2001 to 35 percent in 2009.
Life expectancy rose 70.5 to 73.5 and infant
mortality fell from 35.1 to 19.4 per thousand (from 2000-2009).
But by 2009, Peru still had 62 percent of its
population living on less than three dollars a
day, and the percentage is certainly about the
same today Peru is a majority-poor country.
With vast regional, urban-rural, ethnic, and
overall income and wealth disparities the
poverty rate is 60 percent in rural, versus 21
percent in urban, areas -- most people
understandably felt cheated. Most importantly,
the governments of García and Toledo didn't
deliver on the kinds of big initiatives that the
left governments in the region delivered. Bolivia
lowered the retirement age from 65 to 58 and
greatly expanded the public pension system,
nationalized its hydrocarbons industry, and
increased social spending. Ecuador expanded
social spending, especially on health care.
Venezuela provided free health care to its
citizens and tripled real social spending per
capita, greatly expanding education, including
free university education. Brazil had a 60
percent real increase in the minimum wage (in
Lula's eight years) and some modest increases in
anti-poverty spending. Peru's last two
governments did not do these kinds of things.
The lesson is clear: those political parties and
governments that want to make sure they are
re-elected have to promise and deliver real
economic and social change. South America's left
governments of the past have helped to make this
a part of the democratic process, and this
influence is likely to affect the region for many years to come.
Mark Weisbrot is an economist and co-director of
the Center for Economic and Policy Research. He
is co-author, with Dean Baker, of
<http://www.amazon.com/exec/obidos/ASIN/0226035468/counterpunchmaga>Social
Security: the Phony Crisis.
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