Politics and Economics in Peru: Exploring the Relationship Since Independence - Essay Sample

Introduction

In the paper at hand, there is the exploration of the political and economic situations of Peru, followed by the explanation of their relationship, and finally, the revelation of the core problem identified between politics and economics. It can be established since independence, Peru has had six presidents since independence. During election periods, Peruvians elect the president who rules for a five-year term, alongside other 130 seat legislature of unicameral nature (Acosta & Haddad, 2014). For the case of the political faction of Peru, it has been among the strongest ones in Latin America. There existed president Humala's economic strategy that saw the maintenance of free-market policies alongside working to narrow the wide distribution gap of the economy as well as eliminate the social exclusion of the poor people in Peru, whose majority is the indigenous population (Acosta & Haddad, 2014). However, the political landscape of Peru has been marred with deep social divides on the way forward towards pursuance of the aim of eliminating the social exclusion of the poor people in Peru (Brass, 2015). Thus, there have been numerous undertaken social unrests alongside social debates on the exploitation of natural resources, which have taken place for a long period and are likely to continue as a considerable challenge for the Peruvian government.

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Therefore, more and more and more serious disputes have developed regarding the mining industry, where the rights of natives living in mining areas have been infringed upon (Brass, 2015). The former president of Peru, president Humala, found it politically hard to strike a balance between his stated intention of helping the poor and native people alongside his effort of encouraging investment in the business sector, more especially in the mining industry. In the former president Humala administration, which began in the year 2011, he had promised to, alongside reducing poverty, to improve teaching standards in the country, introduce a new system of pension, alongside much more scholarships for the students pursuing higher education in the country (McClintock, 2014). Nonetheless, his administration had frequent features of corruption scandals as well as cabinet changes. He even appointed seven different prime ministers within his five-year term. It can be established that the sixth prime minister got censured by Peruvian congress following the allegation that the national intelligence agency had spied on some of the members of the opposition faction in the political arena (Acosta & Haddad, 2014). President Humala, who was a former officer in the military, was also accused of employing his military associates in the intelligence agency. There is also a situation where a Brazilian federal police tasked with the investigation of corruption in Brazil oil company that is run by the Brazilian company, known as Petrobras, launched some investigations of president Humala over $3 million bribes scandal he had taken part in as an exchange of a contract with Petrobras oil company (Arce, 2010). Also, in the year 2016, the attorney general of Peru seconded by launching his investigations into the matter.

There also an aspect of the Peruvian general public, which has expressed increased forms of disillusionment concerning the political class of the country. In such a case, they observed it in the political arena, when more than 100 political contestants who had shown some links with cases of drug trafficking managed to win in the elections (Arce, 2010). Five of the politicians elected in the year 2014 had been investigated on the grounds of corruption alongside money laundering (Brass, 2015). Also, various current corruption scandals registered in the country are linked to the close associates of the president of Peru, in one of the high profile case, during president Humala's presidency, the investigators of the government looked into the ties of the first lady Nadine Heredia with Martin Belaunde who was the former adviser of Humala as she awaited trial over money laundering as well as political espionage (Arce, 2010). Such political scandals mixed with the slowed growth of the economy. They were at a high rate during the reign of president Humala, which has also been reflected in the current governments of the country.

Regarding the economic background and stature of Peru, there is a fact that it has been among the most performing in Latin America since the year 2001. It can be established that economic growth in the country ad averaged to 6.8% from the year 2013 to 2008 (Babb, 2010). In such a period, there was an economic boom in the country that was spearheaded by the profitable oil and mining businesses (McClintock, 2014). The economic growth could then fluctuate, hence reducing to 2.4% in the year 2014. There was a minor growth rebound to 2.7% in 2915, as reported by the Economist Intelligence Unit (Babb, 2010). There could then be the growth in the economy from the year 2016 to 2018. There occurred an El Nino in 2016 in Peru that, however, adversely affects the growth in the economy. There have also been heavy rains in the country that caused landslides and floods that resulted in killing many people, destroying property and homes, ruined crops, and destroyed infrastructure in San Martin state of the country (Babb, 2010). Such occurred due to poor political strategies on economic planning, more particularly during president Humala's administration.

There was also the economic strategy of president Humala that maintained free-market policies. There arose some more radical entities from Humala's initial support base alongside his Gana Peru coalition that became disillusioned with him, while accusing him of having abandoned the pursuit of aggressive leftist economic policies, including the nationalization of various strategic industries that he had claimed to be actively supporting during the campaign period (Babb, 2010). Some of the political forces which resisted more radical approaches include the strong business sector, the wealthy, the conservative, as well as the centrist middle-class groups. Such forms of government are still present to date, where they promise significant economic development policies during campaign periods, only to fail to implement them once administrating the country (Babb, 2010). Thus, the political and economic systems of Peru are full of tensions, with the core problem between politics and economics being the leaders failing to implement appropriate economic policies.

References

Acosta, A. M., & Haddad, L. (2014). The politics of success in the fight against malnutrition in Peru. Food Policy, 44, 26-35.

Arce, M. (2010). Market reform in society: Post-crisis politics and economic change in authoritarian Peru. Penn State Press.Babb, F. E. (2010). Between field and cooking pot: The political economy of market women in Peru. University of Texas Press.

Brass, T. (2015). Towards a comparative political economy of unfree labor: Case studies and debates. Routledge. McClintock, C. (2014). Peasant cooperatives and political change in Peru (Vol. 104). Princeton University Press.