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Graft has long been a
feature of political systems where rewarding loyalty takes precedence over economic
efficiency or the rule of law. But recent events in Latin America show that
popular anger at corruption has become a force to be reckoned with – fueled by
the power of global markets, the information revolution, and democratization
movements. This report assesses the geopolitical implications.
Peruvians will vote in a December referendum that could introduce anti-corruption rules giving President Martin Vizcarra a stronger hand as he faces a hostile congress. If the referendum fails, however, the country’s new leader would be weakened, prolonging Peru’s political dysfunction and holding its economy back.
Dr. Joseph S. Tulchin
In Peru, President Pedro Pablo Kuczynski is wrangling with a fractious, majority-opposition congress. Having just narrowly escaped impeachment proceedings, he offered a presidential pardon to the controversial former President Alberto Fujimori. The move could gain him allies in the opposition’s ranks, but has alienated many of his supporters. However, with copper prices predicted to rise – and with them Peru’s economic growth – he may soon get a respite.
will have a big impact on Latin America in the coming year: the closer a
country is to the United States, the worse off it will be. What President
Donald Trump does will shape developments in the region, as will the prices of
key commodities. If Mr. Trump decides on collaboration instead of unilateral
demands, however, the region could see positive developments.
just barely eking out a victory in Peru’s June presidential elections, Pedro
Pablo Kuczynski has made a fast start, gaining special powers to fight crime
and corruption. The opposition has a significant majority in Congress, but PPK,
as the president is known, is still likely to implement much of his
Professor Cynthia McClintock