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LATIN AMERICA ADVISOR a DAILY PUBLICATION of the DIALOGUE Monday, March 26, 2018 LATIN AMERICA ADVISOR A DAILY PUBLICATION OF THE DIALOGUE www.thedialogue.org Monday, March 26, 2018 BOARD OF ADVISORS FEATURED Q&A TODAY’S NEWS Diego Arria Director, Columbus Group POLITICAL Devry Boughner Vorwerk Corporate VP, Global Corporate Affairs What Can Peruvians Peru’s Vizcarra Cargill Joyce Chang Takes Office, Vows Global Head of Research, Expect of Their to Fight Graft JPMorgan Chase & Co. Peruvian President Martín Dirk Donath Senior Partner, Vizcarra was sworn in as Peru’s Catterton Aimara New President? president, vowing to fight corrup- Marlene Fernández tion. His predecessor, Pedro Pablo Corporate Vice President for Kuczynski, resigned amid graft Government Relations, allegations that he denies. Arcos Dorados Page 2 Peter Hakim President Emeritus, Inter-American Dialogue ECONOMIC Donna Hrinak President, Boeing Latin America Group Behind Jon Huenemann Vice President, U.S. & Int’l Affairs, Planned Mexico Philip Morris International City Airport James R. Jones Chairman, Raises $1.6 Bn Monarch Global Strategies Martín Vizcarra was sworn in Friday as Peru’s president, following the resignation of his prede- Grupo Aeroportuario de la Ciudad Craig A. Kelly cessor, Pedro Pablo Kuczynski. // Photo: Peruvian Government. de México reportedly raised the Director, Americas International funding through an initial public Gov’t Relations, Exxon Mobil Martín Vizcarra was sworn in as Peru’s president on Friday, offering of shares. John Maisto Director, U.S. Education after the country’s Congress accepted the resignation of his Page 3 Finance Group predecessor, Pedro Pablo Kuczynski, who was brought down Nicolás Mariscal POLITICAL Chairman, Q amid graft allegations and accusations that his supporters Grupo Marhnos tried to buy the loyalty of a lawmaker in an earlier impeachment attempt Temer Signals Thomas F. McLarty III Chairman, against him. Kuczynski, widely known as PPK, has repeatedly denied Intent for New McLarty Associates wrongdoing. What does Kuczynski’s exit after just a year and eight Term in Brazil Carl Meacham Associate VP for Latin America months in office mean for Peru’s politics and institutions? What can Brazilian President Michel Temer Int’l Advocacy Division, PhRMA Peruvians expect of Vizcarra? What messages should businesses and signaled in a magazine interview Carlos Paz-Soldan foreign investors in Peru take from the episode? published over the weekend that Partner, he intends to seek a new term in DTB Associates, LLP the country’s presidential election Beatrice Rangel in October. Temer’s approval Director, Cynthia McClintock, professor of political science and ratings are in the single digits. AMLA Consulting LLC international affairs at The George Washington University: Page 2 Gustavo Roosen Chairman of the Board, “The good news for Peru is that the government of Pedro Envases Venezolanos Pablo Kuczynski will not be limping through three more years, Andrés Rozental A bereft of popular support and unable to advance its agenda through a President, Rozental & Asociados and Senior recalcitrant legislature dominated by the Fujimorista party. PPK was Policy Advisor, Chatham House elected because he had been considered an honest democrat. However, Roberto Sifon-Arevalo Managing Director, Americas he was increasingly perceived as blind to the conflicts of interest involv- Sovereign & Public Finance Ratings, Standard & Poor’s ing Odebrecht and to have bartered the pardon of authoritarian president Alberto Fujimori for his survival of a December impeachment vote. And it is also good news for Peru that the succession to Martín Vizcarra was orderly and constitutional and that Vizcarra’s reputation as governor of Moquegua was excellent. As PPK’s first transportation minister, Viz- carra was faulted for problematic provisions in an airport contract, but political analysts consider him to be honest. The hope is that Vizcarra will Temer // File Photo: Brazilian Government. Continued on page 3 COPYRIGHT © 2018, INTER-AMERICAN DIALOGUE PAGE 1 LATIN AMERICA ADVISOR Monday, March 26, 2018 POLITICAL NEWS Fujimori’s estranged brother, lawmaker Kenji NEWS BRIEFS Fujimori, apparently trying to offer favors to Vizcarra Sworn in another lawmaker in exchange for his support Twelve Killed as Bus of Kuczynski when he was facing an earlier Careens From Road as Peru’s President impeachment attempt in December. Kuczynski tendered his resignation the following day, in Western Ecuador Martín Vizcarra was sworn in Friday as Peru’s reiterating his denial of any wrongdoing and Twelve people were killed and 25 others were president, succeeding Pedro Pablo Kuczynski, saying that his political opponents had made it injured Saturday when the bus they were after Congress accepted Kuczynski’s resigna- impossible for him to govern. After Vizcarra’s riding in slid off a road in western Ecuador, tion and ended his presidency, which lasted inauguration, Keiko Fujimori said it was time to Agence France-Presse reported. The incident just a year and eight months. Kuczynski had be unified and optimistic about the country’s happened at about 2 p.m. local time in the future, The Wall Street Journal reported. “We Jipijapa highway in the Las Américas region of wish success to President Vizcarra,” she said Manibi province, according to the Ecuadorean in a posting on Twitter. A relative unknown to The moment Traffic Commission. The previous week, two most Peruvians, Vizcarra was a one-term gov- has arrived to buses collided in neighboring Guayas province, ernor of Moquegua, Peru’s second-least pop- leaving 11 dead and 54 injured. say ‘enough.’ ” ulated province, from 2011 to 2014. He also — Martín Vizcarra served as transportation and communications minister under Kuczynski before becoming the country’s ambassador to Canada. He served in Bolivians Demonstrate been facing his second impeachment proceed- the ministerial and diplomatic roles while also for Access to Ocean ing on corruption charges, which he has repeat- in office as vice president. In a poll this month Bolivians took to the streets in demonstrations edly denied. Vizcarra, who had been serving as by Ipsos, 81 percent of Peruvians did not rec- across the country on Friday to demand access the country’s vice president and ambassador ognize Vizcarra’s name, the Associated Press to the Pacific Ocean for the landlocked nation, to Canada, flew back to Peru from Toronto on reported. Vizcarra’s first major appearance on the Associated Press reported. Bolivia’s gov- Thursday, his 55th birthday, and arrived in Lima the world stage will be next month when Peru ernment last week petitioned the International in the early-morning hours on Friday. Vizcarra holds the Summit of the Americas, hosting Court of Justice in The Hague, asking it to was draped with the presidential sash before heads of state including U.S. President Donald force Chile to enter negotiations over the issue. members of Congress on Friday and called on Trump. Vizcarra did not mention the summit in Chile then argued before the court that it has them to work together, while he also vowed to his inaugural address, but state news agency no obligation to do so and that the matter was crack down on corruption, La República report- Andina reported on Friday that he has instruct- settled in a treaty more than a century ago. On ed. “The moment has arrived to say ‘enough,’” ed the country’s foreign ministry to continue Friday, Bolivians waving the country’s flag and Vizcarra said in his inaugural address, The preparations for the gathering. holding banners flooded the streets of La Paz Wall Street Journal reported. “We are a country and other cities in the demonstrations. with a future, but that future depends on our Brazil’s Temer behavior.” In the speech, Vizcarra did not outline how exactly he plans to crack down on Signals Run Coca-Cola FEMSA corruption, and he discussed few specifics, other than saying he would form a completely for New Term Closes Plant Amid new cabinet, the Associated Press reported. Threats, Attacks Brazilian President Michel Temer signaled in He also said that he would work to ensure the Coca-Cola FEMSA, the world’s largest Co- an interview published over the weekend that strength of the country’s institutions. “Don’t ca-Cola bottler, announced on Friday that it is he intends to run for a full term in the country’s lose faith in our institutions,” he said. “Let us closing one of its facilities indefinitely due to October presidential election. “It would be cow- show you that Peru is bigger than its prob- persistent attacks. Citing consistent violent ardly not to be a candidate,” Temer told weekly lems.” Vizcarra’s success in office could hinge attacks and a failure of rule of law, the com- news magazine IstoÉ. The statement is a rever- largely on the position of Keiko Fujimori, the pany announced in a statement that it would sal from Temer’s stance when he became presi- leader of right-wing opposition party Popular immediately cease operations at its Altamirano dent following the impeachment and removal Force, which has the largest number of seats plant in Guerrero State. The decision followed from office of his predecessor, Dilma Rousseff, in Peru’s Congress, The Wall Street Journal two separate attacks on workers at the plant, Folha de S.Paulo reported. At the time, he said reported. The party last week released videos where workers have been receiving threats he would only serve for the remaining two and showing allies of Kuczynski, including Keiko since January. COPYRIGHT © 2018, INTER-AMERICAN DIALOGUE PAGE 2 LATIN AMERICA ADVISOR Monday, March 26, 2018 a half years of Rousseff’s term. When asked FEATURED Q&A / Continued from page 1 about his low approval rating, Temer pointed out that his approval rating has doubled from continue the anti-corruption agenda that he his resignation was almost unanimously 3 percent to 6 percent and said with a laugh began at his inauguration, govern effectively, demanded prevented a more serious crisis.
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