Peru’s new president: Promises and premonitions | The Economist

Peru’s new president: Promises and premonitions | The Economist.

Having shed his Chávez image with the help of a Brazilian makeover, Humala might indeed following Lula’s path, shunning the extreme left and adopting more conservative economic policies.

The clearest sign that he means this is embodied in his economic team, announced this week. Mr Humala named as his economy minister Luis Miguel Castilla, who was deputy minister in the outgoing government of Alan García and formerly worked at the World Bank. Another moderate, Salomon Lerner, will be prime minister. Mr Lerner, a businessman, was at Mr Humala’s side throughout the campaign. Julio Velarde, a liberal economist, is to remain as governor of the Central Bank for the next five years. His appointment was welcomed by investors: the Lima stockmarket index climbed by 4.6% the next day.”

Leaders of Mr Humala’s Gana Perú (“Peru Wins”) political coalition were disappointed. Javier Diez Canseco, a congressman-elect, said that one of the economists who drew up the president-elect’s campaign platform, a leftist document, should have been named to run the Central Bank. By contrast, Mr Velarde opposes the platform’s proposal to raise the minimum wage by more than 20%. He supports a new law allowing private pension funds to invest 50% of their portfolio abroad, which Gana Perú leaders want to scrap.”


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