Peruvian election signals move to moderate left in region

John Galante | Foreign Policy Association | June 15, 2006

http://www.fpa.org/topics_info2414/topics_info_show.htm?doc_id=377310


The result is a victory for the moderate left, rather than anti-
capitalist and anti-U.S. hardliners, during an election-heavy year 
in Latin America that some see as a contest between Chávez and the 
Bush administration.

García, Peru's president from 1985 to 1990, has voiced his 
intentions to administer a second term from the center-left, similar 
to counterparts in Chile, Brazil and Argentina, where leaders hope 
to couple liberal economics and progressive social policies.

His opponent, Ollanta Humala, meanwhile, has laid harsh criticisms 
on Peru's economic openness and the influence of foreign capital. As 
a result, the former military commander received strong support from 
Chávez during the campaign.

The loss is unlikely to quiet the Venezuelan president's opposition 
to the Bush administration, but prevents an ally from assuming the 
top position of another Andean nation.

The December 2005 election of the Chávez-inspired radical 
nationalist Evo Morales to the Bolivian presidency (following 
protests that led to the ouster of his two predecessors) struck a 
chord in Washington and the American press, leaving many wondering 
if it signaled a trend in populist and anti-U.S. candidates winning 
subsequent elections across Latin America in 2006, when at least 
eight nations will choose their leaders.

Chávez, a vocal supporter of Morales, was aglow at the fourth EU-
Latin America Summit in May, courting newly elected Socialist 
President Michelle Bachelet of Chile and other members of a 
community of left-of-center leaders in Latin America; Brazil's Luis 
Inácio Lula da Silva and Argentina's Néstor Kirchner among them.

Meanwhile, the announcement this spring that Morales will take steps 
towards the nationalization of Bolivia's natural gas and energy 
sector – not to mention his use of anti-capitalist rhetoric both 
before and after his victory – heightened worries of a "pink tide" 
sweeping across the hemisphere. Peruvian candidate Humala was next 
in line.

Much like Chávez, Humala is a former military man who previously led 
an unsuccessful coup attempt against the government. He often 
condemns the U.S., liberal economics and the international business 
community. For his efforts, he received much verbal (and perhaps 
financial) support from Chávez and earned the most votes in a first 
round of elections in April on a platform that included writing a 
new constitution and redistributing wealth to the poor majority.

During the run-off election campaign (necessary when no candidate 
received 50% of the total in the first round), Alan García, who's 
first presidency was marked by economic decline and rising 
inflation, corruption and guerrilla activity, campaigned hard 
against what he referred to as Chávez's "imperialist" intentions. 

Peru and Venezuela even cut diplomatic ties during the campaign, 
with current President Alejandro Toledo citing Venezuela's meddling.

García drew many of the votes of right-wing candidate Lourdes Flores 
in the second round and won with strong support in Lima and the 
industrial northwest. Humala's popularity in the poorer south was 
not enough for a win, but his party does represent the largest bloc 
in Congress.

"Tonight, the country has sent a message of sovereignty and national 
independence and defended Mr. Hugo Chávez's efforts to incorporate 
us in his expansionist strategy," García said in his victory address.

When first elected in 1985, García's beliefs were not unlike those 
of Chávez and Humala today, but he has since taken a more moderate, 
pro-market stance. This is evidenced in the strong reaction markets 
and the Bush administration took to his victory, and a 
congratulatory phone call he received from Chile's Bachelet soon 
after.

While she represents the Socialist party, Bachelet (selected in 
January as South America's first woman elected head of state) is 
hardly a firebrand leftist of the Chávez or Morales sort. She is 
committed to her country's economic openness, but preaches a middle 
ground between neoliberalism and statism, whereby strong and 
effective social policies must be implemented to solve endemic 
problems of inequality and poverty caused by market forces.

The Chilean president's line is similar to that of her counterparts 
in Brazil and Argentina. Brazil's Lula was elected in late 2002 to 
solve many of the problems Bachelet hopes to tackle. While some 
feared former union leader Lula might move the country far to the 
left, his administration has stuck to the openness and sound fiscal 
discipline of its predecessor while attempting to secure 
redistributive benefits for the poor. He is up for election again in 
October.

Argentina's Kirchner, meanwhile, was elected after the political and 
economic upheaval stemming from his country's economic collapse at 
the end of the 1990s. He has worked hard not to discredit Argentina 
in the eyes of the international community while standing up to 
creditors and multi-national corporations who many believe were the 
agents of neoliberal policies that brought the country into crisis.

Market fundamentalism in Latin America under the so-called 
Washington Consensus was previously seen as a panacea to the 
government corruption, mismanagement and debt that plagued the 
region during the middle part of the last century. But reliance on 
the private sector left many disheartened and marginalized by forces 
out of their control and strongly imposed by the U.S., Europe and 
other advocates of global capitalism.

It is from within this environment that Chávez and Lula arose. While 
the two maintain an active dialogue – and both cite Cuba's Fidel 
Castro as inspiration – their politics and approach to U.S. 
influence are decidedly different. Using Venezuela's oil wealth, 
Chávez has used a strong hand to enact state-run poverty reduction 
programs for his largely poor support base and to quell the 
opposition. (No strong opponent has yet emerged for an election in 
December.) Meanwhile, due at least in part to U.S. dependence on his 
country's energy resources, Chávez has become empowered to voice 
resistance to U.S. influence in the region by supporting candidates 
with similar views.

Lula has also reached out to his neighbors in the region and sought 
to counter U.S. authority, notably through stymieing of the Free 
Trade Agreement of the Americas. However, unlike Chávez, the 
Brazilian president has looked to negotiate with Washington and 
maintain a positive relationship with a country that represents a 
huge market for Brazilian goods and a source of investment funds.

What García's victory in Peru indicates is a belief among the 
majority that the center-left path of Brazil, Chile and Argentina is 
a better choice than the radical nationalism of Chávez's Venezuela 
and Morales' Bolivia.

Other elections in Ecuador and Nicaragua this year (the former's 
president fled the country in April 2005 and has a center-left 
candidate leading the polls, while the latter has Sandanista 
candidate Daniel Ortega trying to return to the presidency) will 
further test Chávez's influence beyond his country's own borders.

In Mexico, which will hold elections on July 2, voters will choose 
between candidates who represent sides of a more traditional 
rivalry, with a technocratic former energy minister, Felipe 
Calderón, pitted against a leftist former mayor of Mexico City, 
Andrés Manuel Lopez Obrador.

If the left wins in Mexico, Colombian President Alvaro Uribe, who 
was reelected at the end of May, will be unique among the major 
Latin American countries as a right-wing leader. This probably has 
much to do with the ongoing war against left-wing guerrillas and 
cocaine traffickers, and the enormous amounts of aid it receives 
from the U.S. as a result.

Voters in other countries where social and economic development are 
of primary concern have decided that the left is the better option 
for their current situation. But that left consists of two decidedly 
different points of view towards foreign and domestic affairs.

Garcia's election suggests that a more moderate approach may win 
out. 

A former reporter at Dow Jones & Co., John Galante is a freelance 
journalist. In September he will begin at Columbia University's 
School of International and Public Affairs studying economic and 
political development in Latin America.  He can be reached at 
[EMAIL PROTECTED]










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