The Economist - USA (2020-11-21)

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The EconomistNovember 21st 2020 The Americas 31

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Bello The politics of destruction


T


ime waswhen investors believed that
Peru’s fast-growing economy was
immune to its politics. That contention,
always questionable, was tested almost
to destruction this month. With the
country suffering a power vacuum and
on the brink of descending into violent
chaos, on November 16th a shamefaced
Congress chose Francisco Sagasti, a
76-year-old centrist academic, as the
country’s caretaker president. He is the
fourth man to hold the top job since the
last presidential election in 2016.
In Mr Sagasti Peru has come up with a
winning ticket in its political lottery. His
are the safest hands imaginable, but his
task is not simple. It is to tackle the pan-
demic and the economic slump, both
particularly severe in Peru, while steer-
ing the country through a general elec-
tion due in April. His anointing followed
the failure of a power grab by elements in
Congress, who on November 9th voted
by 105 to 19 to oust Martín Vizcarra, the
president since 2018, on grounds of
“moral unfitness”.
Power passed to Manuel Merino, the
speaker of Congress. Rightly or wrongly,
many Peruvians saw in this a plot to
postpone the election and to advance
murky private interests. Mr Merino
named as prime minister Ántero Flores-
Aráoz, a 78-year-old of the hard right who
won just 0.4% of the vote in the 2016
presidential election. His law practice
represents substandard private universi-
ties that are trying to overturn a universi-
ty reform. His backers wanted to raid the
treasury through populist giveaways.
This takeover prompted the biggest
street protests in Peru for 20 years, main-
ly by young people and in defiance of a
pandemic-related state of emergency.
They met a brutal police response. Two
protesters were killed and scores injured.

With his gambit collapsing, Mr Merino
resigned and promptly vanished. His
putsch highlighted the way that political
parties in Peru have become vehicles for
private interests and for evading justice.
Some legislators pay for places on party
lists and expect a return. Although 68 of
Congress’s 130 members face criminal
charges of various kinds, the legislature
protects its own from prosecution.
This month’s episode marked the cli-
max of years of conflict that runs along
several axes. One dates back to Alberto
Fujimori, who ruled as an autocrat from
1990 to 2000. He defeated the Shining Path
terrorist movement and reformed the
economy, but his regime was corrupt. His
daughter, Keiko, narrowly failed to win the
election in 2016 because anti-fujimoristas
of all stripes united against her. Her party
used its majority in Congress to thwart the
governing programme of the winner,
Pedro Pablo Kuczynski.
Another source of conflict involves
corruption and its weaponisation. Mr
Kuczynski resigned in 2018 to avoid im-
peachment over conflicts of interest. He

remains under house arrest. His three
predecessors are all accused: one is
awaiting extradition from the United
States, one killed himself and a third
spent time in jail. Corruption is indeed
systemic in Peru, and Peruvians know it.
But the presumption of innocence and a
sense of proportion have been lost. No
leader has been tried. Ms Fujimori spent
16 months in jail for alleged campaign-
finance violations. Prosecutors are seek-
ing to drive her party out of existence. Mr
Vizcarra was popular, despite a mediocre
record and woeful management of the
pandemic, because he championed the
cause of anti-corruption. But the pretext
for his summary ousting was evidence
that he had been corrupt when he was a
provincial governor (an allegation that
he denies).
The third faultline is the battle be-
tween the executive and Congress, which
Mr Vizcarra exacerbated. He tried to push
through political reforms. One of the few
that was approved unwisely barred legis-
lators from consecutive terms. Last year
he dissolved Congress in a battle over
appointments to the Constitutional
Tribunal. The new Congress, elected in
January, is even less biddable. Since its
members will serve for only 19 months
and cannot stand next year, they have no
incentive to behave decently.
More useful reforms are coming into
effect for April’s election, including a cull
of minor parties and a bar on candidates
charged with serious crimes. Several
presidential hopefuls are populists,
some of them dangerous ones. Those
who are not will find it hard to assemble
a reformist coalition in the next legisla-
ture. One thing is clear: the crowds of
millennials out on the streets want a
better democracy. Getting it will be a lot
harder than chasing out Mr Merino.

Peru has overcome its immediate crisis, but faces a bumpy ride

but also cocaine. Last year Sea Shepherd, a
vigilante conservation group, filmed fish-
ermen aboard a nodrizabeheading a shark,
a practice that is illegal in Ecuador. The
fishermen then played with the head for
Sea Shepherd’s cameras.
Ecuador’s government tried to crack
down, especially after the eu’s “yellow-
card” warning. In April the legislature
passed a law that increases fines for illegal
fishers. Vessels are now prohibited from
selling three endangered species of shark,
even if they are by-catch, says Jeff LeBlanc,
a government adviser. The government has

started an advertising campaign to dis-
courage Ecuadoreans from eating shark.
Conservationists say these measures
will not work. Ecuador’s coast guard and
navy do not have enough money to patrol
its seas effectively. Ecuador must improve
its rules and enforcement before the eu
lifts its yellow card, says an euofficial.
Conservationists are urging the govern-
ment to double the size of the Galapagos re-
serve. That would cripple Ecuador’s fishing
industry, which competes with China’s
modern, government-subsidised fleet,
says Bruno Leone, president of the Nation-

al Chamber of Fisheries, a pressure group.
The pain would be temporary, respond
advocates of the expansion. Eventually it
would lead to an increase in fish stocks and
thus to bigger catches. The Galapagos re-
serve, even though it is poorly policed, has
rescued species threatened by overfishing.
A bigger one would help the threatened yel-
lowfin tuna population. The critically en-
dangered scalloped hammerhead shark,
which mates and lays eggs in the Galapagos
reserve, might survive. If Ecuador wants to
continue profiting from its marine riches,
it will have to protect them. 7
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