The president of the Central Bank of Peru (BCRP), Julio Velarde, assured that Peru’s economic stability depends “on a change in the fundamental rules” to avoid excessive succession of authorities, a procedure exceptionally regulated in the Constitution, but which has been recurring since 2016.
During his presentation at the World Economic Forum in Davos, the head of the issuing entity said that “political instability has taken its toll” on Peru’s economic growth in the last 8 years.
“Maybe not in stability, which we have been able to protect it, but in growth,” said Velarde.
Before a panel made up of Mauricio Cárdenas, Marina del Pilar Avila Olmeda, Luis Henrique Guimarães and Diana Mondino, the Peruvian banker stated that, starting in 2016, the Peruvian authorities intensively resorted to constitutional tools, such as presidential vacancies and the closure of congresses. , which “no one had dared to use in 200 years.”
“We have had, since 2016, a succession of governments within the constitutional rules. In that year, two right-wing candidates went to the second round; one more liberal [Pedro Pablo Kuczynski] won the presidency, and another more conservative [Fuerza Popular] The congress. When they are often of the same ideological bias, the confrontations are greater“said the head of the BCRP.
“Once these nuclear weapons are used [vacancia y cierre de Congreso]you really have a conflict situation that can only be resolved by changing the rules, and that change has to happen“added Julio Velarde.
In this sense, the Peruvian official took the example of the constitutional reform promoted by former president Rafael Correa, in Ecuador, to settle the coups d’état that until 2008 reduced the political predictability and stability of its economy.
“I do not defend the Ecuadorian model, but probably [en Perú] there is a need for a change in the fundamental rules [mayores candados para el cambio de autoridades]because stability, finally, has been maintained,” he concluded.
Source: Larepublica
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