Print

Mail

wiki links

Peru's Humala `welcomes' foreign investment

Former army lieutenant colonel and presidential candidate of the Union for Peru Ollanta Humala speaks to journalists during a press conference on Friday. PHOTO: AFP

Presidential front-runner Ollanta Humala, who has rattled Peru's political establishment with a nationalist platform reminiscent of a past military dictatorship, pledged to respect foreign investment, private property and free speech if elected.

"We want more investors to come, to rescue the concept of corporate social responsibility," Humala told foreign journalists on Friday. "We will be a government that respects foreign investments, that has a profound respect for private property and freedom of expression."

But the former army officer reiterated that a Humala administration would "review contracts with transnational mining and other companies that are not paying income tax, royalties or are damaging the environment."

Several large foreign mining companies were granted tax breaks in the 1990s as an incentive to invest in Peru after years of economic chaos and guerrilla violence.

But Humala, 43, said times have changed and his government would "use all legal and constitutional mechanisms to defend the interests of the nation" to redefine those contracts.

Humala, who has campaigned for greater state intervention in the economy, holds a six-point lead over pro-business former congresswoman Lourdes Flores in polls ahead of elections next Sunday.

But a recent survey also predicted Flores would defeat Humala 53 to 47 percent in a runoff election, which would be triggered if none of the 20 candidates running wins a first-round majority.

Humala admires the military government of Juan Velas-co, who seized newspapers and TV stations during his 1968-1975 dictatorship. Velasco carried out a largely failed agrarian reform, nationalized industries and forged close military ties with the Soviet Union.

Humala declined to state unequivocally that he would give up power after a five-year term to a democratically elected successor.

"I want to win the election democratically, but I believe this is a question that does not correspond to me as a candidate," he said. "That question would have value if I were president."

Humala said he does not believe in seeking immediate re-election, which is prohibited by in Peru's Constitution. But he has pledged to hold a constitutional assembly to rewrite the country's charter within 12 months of taking office, raising concerns that he might emulate his ally Venezuelan President Hugo Chavez and alter electoral rules to remain in power.
This story has been viewed 1528 times.