Peru is set to declare a nationwide state of emergency, suspending basic rights for 30 days, to try to restore order amid widespread violent unrest.
(Bloomberg) — Peru is set to declare a nationwide state of emergency, suspending basic rights for 30 days, to try to restore order amid widespread violent unrest.
Roadblocks and vandalism across swathes of the Andean nation “need a forceful response,” Defense Minister Alberto Otarola told reporters at the presidential palace in Lima on Wednesday. The government is also considering whether to impose a curfew, he said.
President Dina Boluarte, appointed by congress last week after her predecessor was impeached, is trying to establish her authority and restore order. At least 7 people have died in clashes between protesters demanding Boluarte’s resignation, early elections, and the release of former President Pedro Castillo, who was arrested after he tried to dissolve congress on Dec. 7 amid an ongoing political crisis.
The economic damage from a week of protests is mounting as blocked highways threaten exports from copper mines, and cut off exporters of perishable products such as blueberries and avocados from the ports.
The protests have left 140 injured police officers, according to the interior ministry. Some were injured by an attack with an explosive.
As a concession to protesters, Boluarte pledged to hold fresh elections as early as December 2023 as a concession to protesters rather than finish her term, which goes until 2026.
The unicameral congress is scheduled to debate the proposal for new elections on Thursday.
Demonstrators have attempted to shut down a pumping station near the Camisea field that supplies natural gas to generate half the country’s electricity, and to seize airports, forcing four of them to shut down. The threat of looting has forced stores to close, according to local media in Arequipa, Cusco and Ica.
Inflation Risks
While markets were little affected by the announcement of a state of emergency, the protests risk causing the already high inflation rate to accelerate, said Barclays economist Alejandro Arreaza in a note.
The central bank extended its steepest-ever series of interest rate increases this month after the annual inflation unexpectedly jumped to 8.45% in November.
The state of emergency “raises a major risk of more human rights abuses and deaths that would only serve to inflame tensions further” said Economist Intelligence Unit analyst Nicolas Saldias in a post on Twitter. “It’s a risky move by Boluarte, which underscores the scale of the protests in Peru.”
Castillo, who is being held at the same police facility where former President Alberto Fujimori is imprisoned, faces a potential 18 months in detention pending trial. A judge scheduled a hearing on his case for Thursday morning, with the prosecution saying he could face 10 to 20 years in jail for his actions last week.
(Adds death toll, police injuries, date for debate on early elections, and economist comment)
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