Ollanta Humala Takes Presidential Helm in Peru

A military-officer-turned-politician who shifted from being a supporter of chavismo to a proponent of lulismo took the presidential reins in Peru on Thursday. In his first remarks as president, Ollanta Humala addressed concerns about whether Peru’s poorest are seeing the benefits of the country’s fast-growing economy. “We want the term 'social exclusion' to disappear from our language and lives forever,” he said, revealing plans to create the Ministry of Development and Inclusion. “Economic growth and social inclusion will march together.” Humala caused a stir when he opted to be sworn in on the 1979 Constitution rather than the 1993 charter ratified by Alberto Fujimori, the imprisoned former president and father of Humala’s political rival during the presidential race.

The new leader, who plans to fund social programs through a tax on windfall profits earned by mining firms, announced an increase in the minimum wage starting in August to be followed by a second increase in 2012. Other programs unveiled by the Nationalist Party’s Humala include a pension program for elderly Peruvians living in poverty, a childhood nutrition program that would promote meals in schools, and a scholarship program to support higher education for disadvantaged students.

Humala’s focus on social programs to benefit Peru’s poorest seeks to address criticisms raised against his predecessor, Alan García. GDP growth averaged an impressive 7 percent over the course of García’s administration and his government built up $47 billion in foreign reserves. Poverty declined from 48 percent to 31 percent. In his farewell speech delivered Wednesday evening and listing accomplishments under his watch, García noted that 4.5 million Peruvians were lifted from poverty during his presidency. But observers say García, who chose not to attend today’s inauguration to avoid being heckled as he was when he stepped down from his first term in 1990, fell short of filling the gap between rich and poor while his government was beleaguered by social conflicts. A dispatch in the forthcoming issue of Americas Quarterly reports on a remote jungle town where “Peru’s decade-long economic boom is a far-away myth.” The article reports that in rural areas, where poverty remains as high as 54 percent, Peruvians view Humala as a chance for change.

Still, much to the chagrin of some of his backers, Humala has also said he would keep free-market policies and trade deals in place, thereby reassuring investors. He selected moderates for key positions in his cabinet, keeping Central Bank head Julio Velarde in his position and promoting Luis Miguel Castilla—a deputy finance minister in the García administration—to the top post in the Finance Ministry.

Leaders in attendance at Humala’s inauguration included Argentina’s Cristina Fernández de Kirchner, Bolivia’s Evo Morales, Brazil’s Dilma Rousseff, Chile’s Sebastián Piñera, Colombia’s Juan Manuel Santos, Ecuador’s Rafael Correa, Guatemala’s Álvaro Colom, Honduras’ Porfirio Lobo, Panama’s Ricardo Martinell, and Uruguay’s José Mujica. The OAS Secretary-General, U.S. ambassador to Peru, and vice president of Cuba were also expected to attend. Venezuelan President Hugo Chávez, undergoing cancer treatment in Cuba, was conspicuously absent. During Humala’s first presidential bid in 2006, his policies were seen as mirroring Chávez’s. In 2011, Humala reshaped his platform to be similar to the more moderate policies of ex-President Luiz Inácio Lula da Silva.

Learn more:

• Ollanta Humala’s website and a video of his swearing-in.
• Read AS/COA Online Analyses of Humala’s cabinet picks and his electoral victory.
• Learn more about AS/COA's Social Inclusion program.
• “Dispatches from the Field: Puerto Maldonado,” by Caroline Stauffer, Summer 2011 issue of Americas Quarterly.
• “Humala: We Wait,” by AS/COA Senior Director of Policy Christopher Sabatini, AQ blog.
• “Chávez, Lula, or Humala?” by COA’s Eric Farnsworth, Latin Business Chronicle.