Peru is heading towards a dangerous new populism

IN MARCH WHEN covid-19 first appeared in Peru, the government’s response seemed exemplary. President Martín Vizcarra imposed a swift lockdown. Taking advantage of Peru’s strong fiscal position, his economic team launched the most ambitious aid package in Latin America, worth 12% of GDP. Four months on, the outcome is disappointing. With more than 350,000 cases and at least 13,000 deaths, Peru has suffered grievously from the pandemic. In April its economy contracted by 40% compared with a year earlier.

What went wrong? Covid-19 exposed weaknesses that strong economic growth in this century had concealed. Even by Latin American standards, Peru’s health system is flimsy. Total spending on health care per person is only two-thirds of the regional average; the system is fragmented between public and private and between national and regional authorities; and there were only 276 intensive-care beds for 33m people in March. Some 70% of the workforce toil in the informal economy, many living in dense shanty towns and travelling on overcrowded buses.