How Peru is poised to defy Washington

Fujimori versus Humala is a battle of neoliberal continuity against progressive reform.

On 10 April, Peruvians went to the polls in the first round of the country's presidential elections. No candidate obtained the 50 per cent share necessary to assume the job outright, and so, in just over a month, Ollanta Humala and Keiko Fujimori will go head to head in a contest that has ramifications that go far beyond the country's borders.

The duel certainly represents a clash of ideologies. Fujimori, aged just 35, is the daughter of the former president Alberto, currently serving a 25-year jail term for crimes against humanity committed during his ten-year reign between 1990 and 2000.

Harden your lines

Despite his transgressions, a significant number of people in Peru are grateful to Fujimori Sr for crushing the Shining Path guerrilla movement that waged a bloody, 20-year insurgency against the state. He also wins praise for reducing inflation and initiating food distribution programmes in poor districts.

Keiko, who enjoys near-blanket support from Peru's corporate media, has promised to institute peripheral welfare schemes in an effort to secure support from the nation's poorest. However, she endorses the neoliberal economic principles that have earned the country a deserved reputation as one of the world's most unequal societies.

Many also fear that she would pardon her father and his cronies and take a hard line against indigenous groups clamouring for a bigger slice of the nation's resource revenue.

She has endorsed the "security policies" of the former Colombian president and US darling Álvaro Uribe, who presided over a draconian police state, smashed the unions and gave weapons and impunity to paramilitary death squads prior to leaving office last year.

Human hybrid

Humala, who took 31.7 per cent of votes compared to Fujimori's 23.5 per cent in the first round, is a former army officer who has positioned himself as something of a hybrid of Hugo Chávez's radical wealth redistribution and Lula da Silva's more moderate social inclusion policies.

He was vocal in condemning the government's crackdown against a protest by mine workers in April, during which nine people were killed,. Such incidents are becoming increasingly frequent under the current president, Alan García. Humala attributes the labour unrest to a lack of dialogue between community groups and a government that tends to side with the interests of foreign capital.

Humala has pledged to renegotiate contracts between the state and multinational companies operating in Peru, particularly in the mining sector. He says his aim is to channel more money into desperately needed social welfare schemes and boost the country's pension reserves.

Polls place Humala 6 points ahead of Fujimori as the run-off approaches. Victory would make Peru the latest Latin American country to elect a progressive leader in defiance of the Washington Consensus. That has not gone unnoticed in the US, all too aware of its dwindling influence in a region once regarded as its "backyard".

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Lord Sainsbury pulls funding from Progress and other political causes

The longstanding Labour donor will no longer fund party political causes. 

Centrist Labour MPs face a funding gap for their ideas after the longstanding Labour donor Lord Sainsbury announced he will stop financing party political causes.

Sainsbury, who served as a New Labour minister and also donated to the Liberal Democrats, is instead concentrating on charitable causes. 

Lord Sainsbury funded the centrist organisation Progress, dubbed the “original Blairite pressure group”, which was founded in mid Nineties and provided the intellectual underpinnings of New Labour.

The former supermarket boss is understood to still fund Policy Network, an international thinktank headed by New Labour veteran Peter Mandelson.

He has also funded the Remain campaign group Britain Stronger in Europe. The latter reinvented itself as Open Britain after the Leave vote, and has campaigned for a softer Brexit. Its supporters include former Lib Dem leader Nick Clegg and Labour's Chuka Umunna, and it now relies on grassroots funding.

Sainsbury said he wished to “hand the baton on to a new generation of donors” who supported progressive politics. 

Progress director Richard Angell said: “Progress is extremely grateful to Lord Sainsbury for the funding he has provided for over two decades. We always knew it would not last forever.”

The organisation has raised a third of its funding target from other donors, but is now appealing for financial support from Labour supporters. Its aims include “stopping a hard-left take over” of the Labour party and “renewing the ideas of the centre-left”. 

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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