Piet said that President Vizcarra’s dissolution of Congress is an attempt to rehabilitate Peruvians’ faith in their government.
Despite decades of corruption — evidenced by every former president since 1990 being in jail or facing charges — the system is working in the copper-rich country of Peru, according to Remi Piet of Americas Market Intelligence.
Speaking with the Investing News Network, Piet said that recent actions by President Martin Vizcarra, including his dissolution of Congress, are an attempt to rehabilitate Peruvians’ faith in their government, which has been rocked by corruption scandals for years.
“He enjoys support from the army today, he enjoys support from the overall population in dissolving Congress, which was widely unpopular, but obviously he doesn’t have the legitimacy of a ballot that would have brought him to power, so it’s interesting to see his decision and the next steps for Peru.”
Vizcarra was appointed president after Peru’s previous president, Pedro Pablo Kuczynski, stepped down amid corruption charges. There was no one with popular support to replace him, as opposition leaders and congressional members were facing their own corruption charges.
According to Piet, with Peru’s strong history of mining and the industry’s importance to the national economy, the sector was broadly insulated from corruption due to heightened scrutiny and community interest and participation.
Listen to the full interview above, where Piet also offers his thoughts on how Peru has managed to maintain its mantle as the world’s second largest copper producer, despite decades of top-level corruption in an establishment that wasn’t respected by the Peruvian community.
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Securities Disclosure: I, Scott Tibballs, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.