This archive report was first published on 2 October 2019.
Published on October 2, 2019, Peru's power struggle has reached a boiling point, with President Martín Vizcarra's move to dissolve Congress sparking a constitutional crisis.
For many young and left-leaning Peruvians, this is a chance to wipe the slate clean and reform the corrupt political system that has hindered the country's development for decades.
However, a vocal section of Peruvians is concerned that the country is repeating the mistakes of 1992, when President Alberto Fujimori dissolved Congress with a similar discourse of national rebirth.
As reported by The New York Times in 1996, Fujimori's rule was marked by human rights violations, the dismantling of courts, and the staffing of institutions with loyalists.
Broader Repercussions ¶
Analysts warn that Peru's political paralysis could soon begin to wear down the country's steady economic growth, fueled by mining and infrastructure investment.
Peru's 3.9 percent economic growth forecast this year by the International Monetary Fund is a sign of financial health on a continent plagued by stagnation, stock market runs, and collapse in nearby Venezuela.
However, Peru's basic economic model is unlikely to change, regardless of which contender for the presidency comes out ahead.
According to Diego Moya-Ocampos, a political risk analyst with IHS Markit in London, "There are no signs at present that the favorable regulatory environment for the extractive sector, or the treatment of ongoing operational projects, will be adversely affected."
