Colombians are voting in the presidential election to choose between a former rebel who wants to transform their corporate-friendly economic model and a major builder investigating corruption, according to Bloomberg.
Gustavo Petro, a 62-year-old former mayor of Bogota, wants to raise taxes on the rich, halt oil exploration and protect local industry and agriculture through tariffs.
Until recently, 77-year-old Rodolfo Hernandez was little known outside the provincial city where he was mayor, but he attracted millions of supporters with his attacks on corrupt and wasteful politicians, often using social media. Its economic policy program is scarce in detail.
The fact that two anti-establishment candidates reached the second round, despite one of the fastest economic growth rates on the American continent this year, is a sign that Colombians are demanding a shift away from the traditional style of politics that has dominated the country for decades. . The result is also likely to upset the country’s close relationship with the US.
“Things will not be the same again,” said Mauricio Cardenas, a former Colombian finance minister who now serves as regional adviser to Goldman Sachs Group Inc. “Here we have two intruders, people who are not part of the system.” Regardless of the winner, he added, these elections will mark “a turning point”.
Investors clearly prefer Hernandez and the peso rallied after moving on to the second round, although he later abandoned those gains amid uncertainty about his government plan. Many fund managers do not trust Peter, in part because his plan to phase out oil and coal would deprive Colombia of about half of its export earnings.
The economy will grow by 5.8% this year, at the fastest rate among Latin America’s major economies, according to the International Monetary Fund.
Markets will not be fully open until Tuesday, due to the holiday in Colombia and the US on Monday.
The results are expected early tonight. Peter’s support is concentrated among younger Colombians, and the outcome may depend on how many of them turn out to vote.
Relations with the USA
Colombia has been one of Washington’s closest allies for decades, but this election could change that.
“Whoever wins the vote is likely to destroy the cross-party consensus that both Democrats and Republicans have backed in military cooperation and joint efforts to combat drug trafficking,” said Sergio Guzman, director of Analysis Colombia. .
U.S. Republicans will be reluctant to approve funding for Colombia if Peter is in power, while Hernandez’s policies and some offensive comments he has made about women may make Democrats less likely to work with him, he said.
“Whatever happens, this relationship will be damaged,” Guzman said.
Source: Capital
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