Peruvian President Pedro Castillo’s move to appoint a more moderate prime minister and cabinet will increase political stability and investor confidence in the country. The removal of leftist officials, however, could trigger more disruptive actions against multinational organizations operating in Peru’s extractive industries. Mirtha Vasquez, the former head of Peru’s Congress, was sworn in as prime minister on Oct. 6, just hours after Castillo unexpectedly announced the resignation of her predecessor Guido Bellido (and, by association, his entire cabinet) after just two months in office. Castillo’s own Peru Libre party quickly denounced the shake-up, calling it “treason” in a recent press conference. But the decision to replace Bellido, who leads Peru Libre’s far-left faction, was widely supported by other centrist and opposition parties in Congress, and will likely temporarily shield Castillo from the threat of impeachment....
