MercoPress. South Atlantic News Agency

Peru prepares to fend off 2011 presidential populist contender

PM Simon planning a broad arch coalition to contain populist Humala

Peru's departing prime minister said on Thursday he would run for the presidency in 2011, working to forge a coalition that includes the pro-business ruling party and independents. But it will be some time before campaigning begins.

Prime Minister Yehude Simon who announced that he will resign by the end of the week, said he would like the support of President Alan Garcia's APRA party when he faces strong candidates from the radical left and the conservatives.

”I hope that the coalition includes the party of this government (APRA), the Humanist Party, (which he leads) and groups from the provinces and independents,“ said Simon. The Peruvian constitution bars re-election.

“But the campaign is still eight to ten months away. In the meantime I will continue to fight, as I have always done, poverty”.

Simon, once jailed for belonging to a leftist insurgency before moderating his views, became prime minister last year. President Garcia hoped the appointment would help avert unrest by unions and others unhappy with the government's economic policies.

But things didn’t work out as Garcia expected. The opposition recently demanded Garcia reshuffle his Cabinet, blaming Simon for failing to prevent indigenous protests in the Amazon basin from turning violent last month.

In the worst crisis of Garcia's administration, at least 50 people died after police clashed with protesters who were demanding the government throw out laws that encouraged foreign investment in forestry, mining and oil development in the Amazon rainforest.

Simon is seeking to slow the momentum of Ollanta Humala, a self-described nationalist who is once again a leading contender to succeed Garcia. Humala vowed this week to lead left-wing and indigenous groups to power in the next election.

Humala nearly won the 2006 presidential race, scaring investors with his plans to nationalize key sectors of the economy. He is a friend of Venezuelan President Hugo Chavez and other populist leaders of Latinamerica.

”Humala is still misguided because he is still a loser,” Simon said of his potential opponent.

President Garcia, a fervent supporter of free trade and free markets, has told investors he will work to prevent a Humala from winning the presidency.

He has yet to say who he will name to replace Simon but leaders of the APRA are throwing their weight behind Education Minister Jose Antonio Chang to be the next prime minister. His father was a prominent party leader, though he is not a member of the ruling party.

Garcia, whose approval rating has fallen to 21% amid anger over rising unemployment and poverty and slower economic growth is facing growing protests against his administration free market policies.

On Thursday the Lima police arrested 156 people during a second day of nationwide protests. Some 30,000 police and 6,000 soldiers were deployed to keep order.

The latest demonstrations were called by the CGTP union, which is demanding wage increases for public sector workers and the cancellation of Peru's free trade agreement with the US.

Police cleared highway blockades in four provinces on Wednesday, as transport workers and teachers led strikes and demonstrations.

Peru's national police chief said 156 people were arrested across the country, including 127 in the capital Lima, where some 2,500 people staged a rally in the downtown area.

However the government said that in spite of the strike call and protests, 90% turned up for work in Lima and other cities.