Do we have a Wolf in sheeps clothing?
New-model Alan
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A careful start to a second term[/SIZE][/FONT]
[FONT=verdana,geneva,arial,sans serif][SIZE=-1]IN THE 1980s he presided over hyperinflation, nationalisations, price controls and a guerrilla war. Now back in office after years in the political wilderness, he is bending over backwards to seem like a moderate statesman. No, this is not Daniel Ortega (see
article) but Peru's president, Alan García.[/SIZE][/FONT]
[FONT=verdana,geneva,arial,sans serif][SIZE=-1]Since taking office at the end of July, Mr García has combined a few populist gestures with many of the business-friendly policies of his predecessor, Alejandro Toledo. The first category includes a bill to impose the death penalty on paedophile murderers and on terrorists, and wage cuts for senior officials, ministers and congressmen. The second set of policies has comprised steps to cut red tape for businesses, appointing a fiscal hawk as finance minister and a lobbying campaign to try to persuade the United States' Congress to approve a free-trade agreement with Peru. Mr García has dropped a campaign pledge to levy a windfall tax on mining companies, and instead wants them to make a voluntary contribution.[/SIZE][/FONT]
[FONT=verdana,geneva,arial,sans serif][SIZE=-1]The mixture has gone down well with Peruvians. Opinion polls show the president's approval rating has edged up to around 60%. It helps that Mr García inherited a healthy economy (see chart). High mineral prices have contributed to booming exports. Although he has kept Mr Toledo's economic policies, the president has deftly distanced himself from his predecessor's personal failings. He slashed the official budget for expensive whisky and grounded the presidential jet. Instead, Mr García travels tourist class. When confronted with media reports that he had fathered a child when separated in 2004, he called a press conference to express his warm feelings for the child, its mother and his wife. That was in sharp contrast to Mr Toledo's handling of a similar claim. [/SIZE][/FONT]
[FONT=verdana,geneva,arial,sans serif][SIZE=-1]But there are occasional glimpses of the old Mr García, too. He has lashed out at critics, from environmentalists and human-rights activists to the divided opposition. He pops up to announce personally even the most mundane news, such as the end of a dockworkers' strike. [/SIZE][/FONT]
[FONT=verdana,geneva,arial,sans serif][SIZE=-1]He is lining up foreign aid for a much-needed anti-poverty programme, but it is not clear whether he will take the tough measures needed to improve education and health. His shrewd prime minister, Jorge del Castillo, has been wheeled out to settle a series of protests, including one by Amazonian Indians which shut down the main oilfield for almost a fortnight. Some Peruvians worry that this will merely encourage further protests.[/SIZE][/FONT]
[FONT=verdana,geneva,arial,sans serif][SIZE=-1]Although Mr García's [SIZE=-1]APRA[/SIZE] party may not do well in local elections on November 19th, the outcome is unlikely to have much bearing on national politics. More important will be the fate of the free-trade agreement, and whether the government succeeds in reaching agreements with the mining companies on tax and with Spain's Telefónica, the dominant telecoms operator in Peru, on reduced charges. The test of Mr García's new moderation will come when the going gets tough. [/SIZE][/FONT]