As of Wednesday, at least six people had been reported dead during the days of the protests, according to Peruvian authorities, as officials called for calm and struggled to contain the situation. At least nine major roads in the country have been blocked by protesters. Late Monday, President Pedro Castillo declared a state of emergency and imposed a curfew on the capital, but withdrew and lifted the curfew on Tuesday afternoon, as hundreds of protesters ignored the measure to take to the streets in protest of Lima. of. “Peru is not having a good time,” Castillo said on Tuesday after leaving a meeting with lawmakers, “but we have to resolve it with state powers.” Whole squares away, police with riot equipment used tear gas to dissolve demonstrations and protesters flew stones, with at least 11 people being injured in conflicts.
Why Peru?
Peru is not new to political unrest. For the past five years, the country has had five presidents, two of whom have been ousted and removed from office amid street protests. Castillo himself has already faced – and survived – two reprimands since taking office in July. Last year, Castillo won the presidency by a narrow margin and faced a Congress in the hands of the opposition, limiting his political capital and ability to function. But while Peru has been a hotbed of protests in recent years, this crisis has been triggered by the immediate aftermath of the war in Ukraine.
The long-term consequences of Putin’s war
The Russian invasion of Ukraine – and the consequent decision by world leaders to isolate Russia from world oil markets – sent oil prices soaring. And for Peru, the impact was particularly serious. Compared to other countries in the region, such as Argentina or Venezuela, Peru imports most of its oil. This left it more exposed to the recent rise, hitting the economy just as it was recovering from the impact of the Covid-19 pandemic and lockdowns. As a result, Peru’s inflation in March was the highest in 26 years, according to the country’s Institute of Statistics. The most exposed sector was food and fuel, with prices up 9.54% from last year, the Bank of Peru said. With prices rising so rapidly, protests soon spread across the country. And on March 28, a group of transport workers and truck drivers’ unions called for a general strike to demand cheaper fuel. In recent days, other organizations and groups have joined the protests, with some areas closing schools and resorting to online teaching as a result of roadblocks and demonstrations. Before becoming president, Castillo was a union leader and a teacher at a small school in rural Kazamarca, demanding better wages and working conditions. Now its main constituency, the bourgeoisie on the outskirts of Lima and rural farmers across the country are particularly hard hit by the inflation spiral, as they pay higher prices for food and transport. This further erodes his political support. According to the Peruvian Institute of Studies, an independent polling station in Lima, the president’s popularity is at an all-time low, with less than one in four Peruvians backing his actions.
What happens next?
It is difficult to predict how the situation will develop. Even before the curfew was issued, Castillo had already made some concessions to protesters by lowering fuel taxes and raising the minimum wage to 1,025 soles – about $ 280 – on Sunday. But even that failed to calm the streets. After the curfew failed, the President seems to be running out of options, as Peru does not have the capacity to control the international price of oil. As the conflict in Ukraine continues to rage, the current climate of inflation is projected to continue. Any further subsidy to lower fuel prices would increase Peru’s debts and further damage its troubled finances. However, the situation in Peru is far from unique and Castillo is not alone. Other leaders are facing the same difficult choices on how to deal with rising inflation as they try to put their finances in order after the chaos caused by Covid-19. As the crisis deepens, Peru could seek answers in other countries. CNN’s Claudia Rebaza, CNN Español’s Jimena de la Quintana in Lima, Florencia Trucco in Atlanta and Jorge Engels in London contributed to the report.
