MercoPress. South Atlantic News Agency

Toledo pledges full-scale war on poverty.

With twelve heads of state present and the full support of the international community, Alejandro Toledo, the shoe shine boy turned economist and the first native Indian origin Peruvian president, took office Saturday July 28th. in Lima, pledging a full scale war on poverty.

Mr. Toledo's inauguration was followed on Sunday by an Indian celebration in the ruins of the ancient Inca fortress of Machu Picchu. According to official Peruvian statistics half of the 26 million population live below the poverty line, surviving on just a dollar per day with one per four children under five, chronically malnourished.

In his inaugural speech Mr. Toledo also promised to eradicate the remnants of the corruption plagued regime inherited from his ousted predecessor Alberto Fujimori, and proposed his fellow South American presidents a freeze on purchase of offensive weapons. "There's no sense in developing and spending money on arms that we've promised not to use", said Mr. Toledo.

Among those leaders present was Venezuelan president Hugo Chavez, who said he considered a diplomatic dispute between both countries was over.

Relations between Peru and Venezuela were strained over the capture of the Peruvian former intelligence chief Vladimiro Montesinos, believed to be under "protection" by the Chavez regime. A few years ago the then all powerful Montesinos gave refuge to pro Chavez officers who participated in a military uprising and later fled to Peru.

However, Mr. Toledo's main challenges will now have to focus in how to recover a stagnant economy and face the enormous expectations his coming to office has created among millions of followers, without scaring foreign investors.