In a few hours, or perhaps days, it will be known who will make up the cabinet that will accompany Dina Boluarte in leading the country and one of the questions is who will head one of the most important portfolios: that of Economy and Finance (MEF).
Former minister Luis Miguel Castilla pointed out that the next head of the MEF should be someone who promotes private investment and helps ensure mining investment, aspects that have been neglected.
In addition, he considered that it must be a person who manages to reverse “the lost 18 months” in economic matters and who aims to eliminate “anti-technical provisions.”
“A minister is needed who buys into the lawsuit, not only rhetorically, but who leads the rest of the ministries with the new premier. To the former minister Kurt Burneo I did not see him in a leader plan, he was involved in his issues and he did not mess with anyone, nor did anyone mess with him ”, he assured.
But all this goes beyond the MEF. Castilla considered that an “economic cabinet” is required. In other words, it involves, for example, the Minister of the Interior to avoid the blockades that affect private investment, and the Minister of Energy and Mines.
Given the projections of analysts who foresee a drop in private investment in 2023, the former minister assured that it is possible to reverse that, but leadership is needed.
“Before entering this government, the economy was growing at a very strong speed. Even beyond the statistical effect, there was an important context of agricultural exports, construction, and trade. All the players in the economy were growing, but when the government came in there was a deterioration in expectations. If effective economic measures are proposed, the projects will continue, ”he stressed.
STRENGTH OF MEF
For his part, the chief economist of the BBVA Research and former Vice Minister of Economy, Hugo Pereaargued that whoever occupies the ownership of the MEF should aim to strengthen this portfolio.
“It is true that he has been losing specific weight within the cabinet, but particularly in the management of Pedro Castillo. We saw that, many times, issues on which the Ministry of Economy and Finance should have an opinion were not taken into consideration by the cabinet itself. This management by Castillo did a lot of damage to such an important institution, ”he added. This strength is achieved, he explained, respecting the opinion of whoever occupies the portfolio and taking into account the aspects that “indicate or question.”
For Perea, in the short term, one of the challenges that the new head of the MEF should face is to prevent a further slowdown in the economy, taking into account that there are countries that would enter recession in 2023.
“I would also suggest that the new minister take actions to strengthen growth in the medium and long term that are more measures on the supply side. Strengthen productivity, competitiveness where it has also lost a lot of space, and recover the quality of public capital not only in the MEF, but in different public entities, ”he emphasized.
Keep in mind
-Former Minister Kurt Burneo pointed out a month ago that the changes in labor outsourcing published by the Executive did not have the expected result, however the rule was not repealed.
-In November of this year, the Ministry of Economy and Finance lowered its projection for growth in 2022, changing it from 3.3% to between 2.7% and 3%.
