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2/18/09

Musical chairs, twobreakfasts style

As his President enters the room, Luis Valdivieso
shields his eyes from the glare of his smile

Remember about a month ago when Peru's FinMin Luis Miguel Valdiveso suddenly and unexpectedly resigned? Remember how his predecessor Luis "luckiest economist in LatAm" Carranza stepped up to take his place? Remember how, in the hasty and brief press conference Valdivieso said he'd been offered an alternative job by President Twobreakfasts?

Well yesterday the episode cleared itself up and Valdivieso was named as Peru's new ambassador of the United States of America, no less. It's all pretty logical on the superficial level, of course. Luismi was an IMF flunkey for years and knows the protocol side of the US backwards. He's also replacing the current Peruvian ambassador, Felipe Ortiz de Zevallos, who strangely and coincidentally handed in his resignation on January 21st, the day after Valdivieso resigned.

But it does shed a little light on the way Twobreakfasts is thinking (if the term is apt) on the Peruvian economy. He clearly wanted Carranza back, as the guy has a higher profile than Valdivieso and is (due to his incredibly lucky timing) credited as being a good hands-on economy manager. In fact he just continued the autopilot that came from the real architect of the Peruvian economy reforms, PPK, and did nothing much....the 'ain't broke don't fix it' rule. But style is far more important than substance in The World According To Twobreakfasts and Carranza's arrival has been an APRA spindoctors dream.

But once again, IKN wonders why Carranza came back and how Twobreakfasts got him to agree. When Carranza first resigned his post, the reason was that he wasn't making enough money as FinMin and wanted to get a nice cushy, highly paid gig in some private consultancy. Yeah, truly, it was said out loud right here by then PM Del Castillo and reported by your diligent IKN. It's kind of intriguing to think about all the recent corruption scandals in this awful Peruvian APRA government and then think that Carranza suddenly finds the FinMin job attractive once again, is it not?