Alan Garcia and Peru - The state of things one year in
Peru's President Alan Garcia marked his first anniversary in office with a traditional 'state of the union' speech before the country's legislature this weekend.The keynote of the address was a renewed commitment to help Peru's poor - almost 44 percent of the country's 28 million residents live in poverty. He set a goal of reducing that total to one third of Peruvians by the end of his term in 2011 through increased public investment and building low-cost housing for 1.2 million. (Critics pointed out that Garcia was very vague on how he plans to achieve these goals)
The speech a precarious time for the beleaguered leader. He has struggled with a wave of public protests in recent weeks and witnessed his approval rating plunge precipitously.
(And they didn't leave anything to chance during the Independence Day activities. Security was at an inordinately high level with many police and no public on the streets in key areas. "Everything was very aseptic, very cold, very perfect," reported the El Comercio newspaper.)
Following his hard-fought election last year, Garcia has emerged as one of Washington's strongest allies in Latin America - an alternative to Venezuela's Hugo Chavez and a possible future trade partner.
The Peruvian economy has been expanding by a healthy 8 percent annually, driven primarily by metals prices. In his speech, Garcia has pledged to continue to support that growth by fostering $20 billion in private investment in manufacturing, mining, gas and electricity and providing $5 billion in public spending on infrastructure, Bloomberg reported.
That's a dramatic difference from 1985 when Garcia first took the reigns of office touting classic populist policies - subsidized food programs, price freezes and an embargo on foreign debt.
Many in Peru recall that Garcia's policies in the mid-1980s allowed his government to function relatively well for the first two years of his presidency but, it was an effort to stem the dip in public perception that prompted him to take a radical action in 1987 - nationalization of the banking system. The subsequent fallout led to an economic collapse.
The event he chose to make the announcement? His second 'state of the union' speech.
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Technorati Tags: Peru, Alan Garcia, Fiestas Patrias
Labels: Alan Garcia, APRA, fiestas patrias, free trade, peru, protests, strike
