SOUTH AMERICA Peruvians turn on president as poverty worsens

Peru's leader is the most unpopular head of state in the Western Hemisphere.
KNIGHT RIDDER NEWSPAPERS
LIMA, Peru -- Four years ago, newly elected Peruvian President Alejandro Toledo inherited a country battered by years of war and corruption, and he promised to save it.
He would stop the stealing of public funds, which had marred the administration of his predecessor, Alberto Fujimori, he said. He would create jobs for millions and ease poverty. As the nation's first president of indigenous descent, he would bring dignity to long-oppressed communities.
Now, with his term ending and the race to replace him gearing up -- elections will be held in April -- millions of Peruvians see his administration indeed as one of lost hope.
Unpopular leader
In polls, they say that Toledo, with an inspiring rags-to-riches story and degrees from Stanford University, has failed to fulfill his promises. And despite some glowing economic trends, Peruvians say they've grown poorer.
"What we hear in poll after poll is he's a person who lies and doesn't do what he says," said Luis Benavente Gianella, director of the University of Lima's public opinion department. "He's a frivolous man. He's erratic. He fell right after his election and didn't have much time to enjoy his victory."
In fact, the president, 59, holds a dubious distinction: Polls show he's the most unpopular head of state in the Western Hemisphere, with an approval rating in some polls as low as 8 percent.
Even Toledo's supporters are combing the ruins of his administration and wondering publicly what went wrong. Toledo isn't expected to seek re-election.
"Our biggest failure was one of communication," said Hugo Garavito, the national chairman of Toledo's Peru Posible party. "We didn't tell the story of our accomplishments. The economy is growing, and the country is moving forward, but the press didn't like anything.
"This president didn't deserve the intensity of this rejection."
Poverty
Peruvians have turned on Toledo even though the country's economy grew steadily during his term. Its gross domestic product expanded by about 4 percent a year, while inflation hovered around 2 percent.
On the political front, Peruvians have experienced relative peace even as social unrest brought down governments in neighboring Bolivia and Ecuador.
One persistent issue has been poverty. Despite overall economic growth, the percentage of Peruvians earning below the poverty wage has changed little since 2001, stuck at about 50 percent.
The country's official unemployment rate has also barely moved since 2001, when it was 9 percent. Even 40 percent of those holding jobs in Lima aren't earning enough to meet basic needs, according to the country's National Statistics Institute.
"The economic growth hasn't benefited people," said Congressman Javier Diez Canseco, who helps lead a coalition of leftist parties. "There's more wealth, but it's in a few hands."
Polls show many Peruvians feel their personal economics have worsened.
Unsavory personal life
Much of Toledo's fall in popularity also has to do with the man himself and what many said was his aloof manner and unsavory personal life.
During his 2001 presidential run, Toledo had been dogged by rumors that he had a daughter from an extramarital relationship, an accusation that Toledo denied.
Only in late 2002, after months of press coverage and public debate, did Toledo publicly recognize his teenage daughter Zarai. But the damage had been done.
"That set the tone for the rest of his presidency," said Mario Munive, a political editor at the Peruvian daily La Republica. "The daughter looks just like Toledo, yet he wouldn't take DNA tests and recognized her only after a fierce campaign."
Miscalculation
Then came the political miscalculations that alienated enemies and allies alike.
The latest emptied out his Cabinet in August after he appointed much-disliked politician Fernando Olivera to be foreign minister, a move that prompted the resignation of Prime Minister Carlos Ferrero and other ministers. Olivera later renounced his post but not without some bitterness toward Toledo.
Recent polls show Toledo's party far behind in next year's race by a range of other parties, including that of Fujimori, who has threatened to return from his Japanese exile and run again.