Kuczynski: Peru’s fall guy

The curtain came down on Peru’s latest experiment with liberal economics last month when President Alejandro Toledo sacked Economy and Finance minister Pedro-Pablo Kuczynski.

The curtain came down on Peru’s latest experiment with liberal economics last month when President Alejandro Toledo sacked Economy and Finance minister Pedro-Pablo Kuczynski. The consensus is that Toledo fired the former investment banker and senior World Bank official to shore up his sagging political support in the wake of deadly antiprivatization riots and high unemployment. Kuczynski, who was in office barely a year, doesn’t disagree.

Citing a 4.3 percent growth rate in the first half of 2002 after four years of recession, Kuczynski says that his removal had nothing to do with economics. “This is elementary gutter fighting,” says the onetime head of First Boston International (now part of Credit Suisse First Boston). Political opponents “felt that so long as the economic good news was continuing, their electoral chances were reduced, so that was a reason to push for my ouster.” He adds, “They want to keep Toledo alive but not in great health.”

The opposition’s ploy is not going to work, says the 63-year-old Kuczynski. He is confident that his successor, Javier Silva Ruete, who served as Economy and Finance minister twice before, will see to that. “Ruete is a good choice, he knows the ministry very well, and he’s an expenditure cutter,” says Kuczynski.

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