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LATIN AMERICA ADVISOR

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

December 9, 2022

What Must Peru’s New President Do to Bring Stability?

Dina Boluarte was sworn in as Peru’s first female president on Wednesday after her predecessor, Pedro Castillo, was ousted following his attempt to dissolve Congress and rule by decree. // Photo: Peruvian Government.

Q

  • Peru’s Congress voted overwhelmingly on Wednesday to oust President Pedro Castillo, who had already been facing impeachment, after he attempted to dissolve Congress and take unilateral control of the government. Vice President Dina Boluarte was sworn in as Peru’s first female president, and Castillo ended the tumultuous day under arrest. What are the biggest challenges now facing Boluarte, Peru’s sixth president in less than five years? What long-term reforms does Peru need in order to stabilize its government, and will Boluarte and the country’s Congress be able to put them into place? What has Peru’s chaotic political situation meant for the country’s economy and businesses?

A

Mercedes Aráoz, senior professor of finance at the Universidad del Pacífico and former vice president of Peru: “After the few hours of political crisis caused by Castillo’s attempt to dissolve Congress and his announcement that he would take over the judiciary, the Constitutional Tribunal and the prosecutor’s office, new President Boluarte asked Congress for a political truce; she will need it in the coming months. Her new cabinet will be crucial. It should be a mix of political allies from Congress, though is not clear who they are, and technocrats who can recover government institutions tainted by corruption and mismanagement during Castillo’s time in office. Boluarte’s cabinet chief should be a very good strategic politician who can make coalitions and agreements on…”

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