Saturday 21 May 2011

Peru update: Humala scares the horses

It turns out Ollanta Humala doesn't just need to convince the voters he's moderate on the economy: he needs to convince investors, too.

Reuters reports that business deals are being held over to wait and see who wins. Humala has said that if elected he'll respect private deals and maintain existing macroeconomic policy; if he does win he's going to spend a few weeks saying "No, really" and desperately trying not to sound too communist.

Fujimori seems to be seen as a safe pair of hands, though she's hanging out with a lot of advisers from her father's government: advisers that a lot of people think should be in court facing corruption charges. At least in South America, it seems business fears graft less than nationalisation.

For Humala to win, it seems like Hugo Chavez really needs to keep his mouth shut for a few weeks; sadly, this is not a skill he has demonstrated in the past.

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