[Economy] Pedro Castillo: what is the poor economy with markets proposed by the president-elect of Peru (and why it generates uncertainty)

[DeepPurple]

Castillo, who won the elections by just over 44,000 votes, had to wait more than a month before being officially proclaimed as the next president of Peru - this Monday - after his rival, Keiko Fujimori, accused him of electoral fraud and challenge him to justice.

During all these weeks of waiting after the results of the June 6 elections were contested, Castillo has come out to calm the waters amid a climate of uncertainty about the course that the Peruvian economy will take under his mandate.
To reaffirm himself as a figure that will maintain economic stability in a country that has had four presidents in four years, he has played at least two key cards.
The first was the appointment of Pedro Francke as his main economic advisor, a man who enjoys respect in the business and academic environment.

The second was to ask Julio Velaverde, president of the board of the Central Bank, to continue as in the last 15 years at the head of the institution to guarantee its independence.
This is how Pedro Castillo presents himself just eight days after assuming the presidency of a country that had the largest economic contraction in Latin America in 2020 in the midst of the covid-19 pandemic.

A country where three out of every 10 people live in poverty and more than 70% of workers belong to the informal market, despite the fact that its economy was considered an "economic miracle" due to its rapid growth in the last two decades and prudent management of public finances that allowed it to maintain fiscal balance and attract investment.

As Peru is such a divided nation, what now generates more uncertainty, experts consulted by BBC Mundo say, is who will really rule the country.
What is known about the "poor economy with markets"
As has happened with Castillo himself, the idea of a "poor economy with markets" has also undergone an evolution in recent months.

The new president, whose inauguration is scheduled for July 28, is promoting a change that may alter the economic fundamentals that have guided the country in recent decades.

But what change is it?

The concept of "por economy with markets" does not appear in any economic text.

Originally it was defined as a mixture between the experience of the leaders Evo Morales in Bolivia and Rafael Correa in Ecuador.
It is, therefore, a kind of "evocorreismo" to the Peruvian, under the guidelines of a planning, entrepreneurial, industrializing and protective State.

"A State that generates internal resources from the sovereignty of its resources."

However, when Castillo unexpectedly went into the second round, there was a twist.

The candidate signed new players in his technical team.

Among them, the aforementioned Francke, who is seen as the likely economy minister of the new government.

"Castillo realized that he has to govern for the entire country and his current technical team represents a modern left, not a primitive left," tells the BBC Mundo Sinecio López, a sociologist and academic at the Pontificia Universidad Católica del Perú and de the National University of San Marcos.

https://www.bbc.com/mundo/noticias-america-latina-57897461