Peru only allows its presidents to complete one term in office, and with his five years now up, current president Ollanta Humala will be replaced on the 28th of July, 2016. Peru has experienced impressive economic growth and sustainable development over the past 25 years, becoming an increasingly attractive emerging economy for investors from all over the world. Peru’s free market model is one of the crucial elements of the country’s attractiveness to companies and investors. So what does the upcoming election mean for the Peruvian free market model?
Presidential Elections in Peru
With the presidential election now moving into the second round, the local markets in Peru have risen with the news that the two main contenders are both free-market candidates. The conservative daughter of a former president, Keiko Fujimori, and middle player Pedro Pablo Kuczynksi are now the main candidates in the running. Both candidates have pledged to continue developing Peru’s business friendly environment. Leftwing candidate Veronika Mendoza, who, alarmingly for investors, would like to see Peru’s mining industry play a smaller role in the economy. As neither of the top two candidates obtained more than 50% of the votes there will be a second round of voting on 5th June 2016.
Below are some key facts to understand what the election’s key candidates signify for the country’s free market and to familiarize yourself with the two main Peruvian presidential candidates now in the running:
- Currently in first place with just under 40% of the votes.
- Born in 1975 and mother of two.
- Daughter of jailed former President Alberto Fujimori, currently serving a prison sentence for corruption and crimes against humanity.
- Founder of the Peruvian Baby Heart Foundation.
- Business Degree Graduate from the Boston University.
- Proponent of right-wing “Fujimorism” political philosophy that advocates free trade and strong security.
- Key policies for 2016 include tax breaks and incentives for small businesses, new legislation to allow communities to become shareholders in mining projects, a renewed education program, and expanded electricity and internet coverage.
- Vulnerable in round two due to opposition based on her father’s infamous legacy.
Pedro Pablo Kuczynksi
- Widely known by his initials PPK
- In second place with 21.6% of the votes
- Born in 1938, he is a married father of three
- Son of Polish Jews that fled the Nazis, his father is one Peru’s leading public health administrators
- Graduated in Politics and Economy from Oxford University
- Often referred to as a “gringo” in Peru, as he spent 30 years working in the US
- An economist who started his career at the World Bank
- Creator of Agua Limpia, a non-profit that delivers clean water to rural Peru
- He has a pro-business centrist political stance
- At 77 he would be country’s oldest president should he win the election