New President, Old Problems: Corruption and Organised Crime Keep Peru in Crisis

Abstract

Peru's new president, Martín Vizcarra, hardly signals a fresh start for the country. The crisis of the past two years, which brought Vizcarra into office in March this year, is the consequence of long-standing structural problems. Democratic institutions have been eroded and trust in political institutions has reached a new low. The legacy of Alberto Fujimori's authoritarian government (1990-2000) still weighs heavily on Peruvian politics. It includes a fragmented party system, weak institutions, and deeply engrained corruption. Fujimori's daughter Keiko is the head of the opposition party, Fuerza Popular, which controls Congress. Pervasive corruption is a central problem at all levels of Peruvian politics. Moreover, criminal structures, often related to drug trafficking, have increasingly infiltrated the political system. There is also a widespread perception of insecurity, even though the level of fatal violence is relatively low in regional comparison. Polls show low levels of support for democratic structures and a continuous decline in public confidence in the country's political institutions. The new president, Martín Vizcarra, is no exception. His approval rating fell from 52 per cent in May to 37 per cent in June. The Vizcarra government will find it difficult to pursue a coherent reform agenda. In June, only three months after taking office, its minister of economics and finance had to resign over mass protests against a tax increase on fuels. Increased accountability and the professionalisation of institutions will be essential to investigating and prosecuting corruption cases and to reducing the political influence of criminal structures. These are preconditions for rebuilding trust in the state. International commitments such as those made within the OECD framework are important guidelines. However, Peru's deep political and social divisions and its weak government make a quick fix unlikely.