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Andean Group - September 2021

Introduction

Peru’s new President Pedro Castillo sent jitters across financial markets by naming radical figures from the far-left Perú Libre party in his cabinet on 29 July. These were partially eased by his appointment of the moderate Pedro Francke as finance minister a few days later, but it remains deeply uncertain just how radical an administration Castillo intends to lead. Amid great speculation over his economic plans, the security proposals outlined in Castillo’s inauguration speech received comparatively little attention. He takes office at a delicate moment, with a real risk that the extreme polarisation unleashed during the election campaign could lead to violence. We begin this September edition of the Latin American Regional Report: Andean Group by looking at Castillo’s plans for the economy and public security.

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