News Analysis: Challenges Posed for Peruvian President-ElectSome of the challenges in urgent need to be faced by the new President-elect, Alejandro Toledo, as soon as he takes office are, among others, the combat against social and economic crisis, generating an environment of confidence for international finance, and to institutionalize democracy.A U.S-educated economist and the first indigenous person elected to lead Peru, Toledo won a run-off presidential election with 52 percent of the vote and an almost five point lead over his rival, ex-President Alan Garcia. Official results with 89 percent of ballots counted gave Toledo 52.23 percent of the valid votes, excluding blank or spoiled paper, to 47.77 percent to his rival Alan Garcia. Toledo's victory on Sunday ended a 14-month electoral process of the Andean nation that began when he ran against President Alberto Fujimori, who sought an unprecedented third term in 2000. Fujimori won in a vote that many called fraudulent, and Toledo led the street protests. Eduardo Stein, leader of the observer delegation for the Organization of American States, praised the election as a model of the region. "The rest of Latin America will have to examine and study carefully these Peruvian paths to solve political crisis without confrontation," he emphasized. But local analysts pointed out that for Toledo, the current state of the country represents a heavy burden, not only because of the foreign debt, amounting to 28 billion U.S. dollars, but also because of widespread corruption, immorality and impunity, as well as an outstanding economic recession and high poverty and extreme poverty levels. The political maneuvering space he counts with is very limited, because he will have to cope with a diverse Congress with only relative majority. Though he announces a "consensus government" and his rivals have promised to cooperate with the new president and to give a pause in pressure, it is also true that the Peruvians have many needs like employment, better salaries, health and education. Toledo has proposed a number or economic reactivation measures for the first 100 days in government, and will have to be firm in terms of fiscal discipline, besides renegotiating foreign debt and creating a suitable legal environment to grant national and foreign investments. He has promised a frontal war against anti-dumping and smuggling; creating a fiscal stability fund; deepening privatization; promoting agriculture and the small sized companies; and reactivating medium and big sized companies; tourism, and construction sector. By the end of his administration he expects to have set the basis of a 6 percent growth rate, and to double exports. Toledo has indicated that he will start a vigorous decentralization process and will support regional and municipal governments, raising national budget items from 3.8 to 15 percent, in order to be managed by local governments by 2002. Regarding human rights, anti-corruption and drug-trafficking, Toledo has indicated that he will promoted the Commission of the Truth and pay attention to recommendations, like obligatory commitments; reinforcing armed and police forces; combating corruption and, with no concessions to terrorism and drug- trafficking. Finally, Toledo will also promote governability with the participation of every political party and social organization; rebuild democracy and the State ruled by law, setting the basis for political economic and legal stability. |
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