BY LUCIEN O. CHAUVIN
  Special to The Herald

  LIMA - The American Popular Revolutionary Alliance emerged as the principal political force in Peru after Sunday's local elections, boosting the electoral hopes of
  former president Alan García.

  After more than a decade of sitting on the sidelines, APRA carried nearly half of the 25 regional governor seats that were up for grabs in the first elections of this kind in Peru's history. It also won a plurality of the mayoral seats in capital cities across the country. Candidates from local, independent parties won eight governorships, with the remaining seats divided among the country's other political parties.

  The victory in 11 regional races is a chance for party president García to redeem himself from his disastrous five-year presidency in the 1980s.

  ''This is an opportunity for us to overcome the image we have of being poor fiscal managers. I am confident we will do this by running transparent governments that
  attract private investment,'' said APRA's secretary general, Rep. Jorge del Castillo.

  During García's term (1985-90), Peru suffered through one of its worst economic crises in modern history, with the economy shrinking by nearly 15 percent and inflation topping 7,000 percent in his final year in office. Two rebel groups also ran rampant, forcing the government to declare nearly 75 percent of its territory under martial law.

  As a result, García was absent from politics for most of the 1990s, forced into exile by former President Alberto Fujimori after his 1992 palace coup.

  But he returned after Fujimori's fall two years ago and, surprising most analysts, made it into a runoff in the 2001 presidential elections. He received 48 percent of the votes in his losing bid against President Alejandro Toledo.

  While steering clear of self-congratulatory remarks, García labeled Toledo and his ruling Peru Posible party as the big losers. Peru Posible received only 12 percent of the vote nationwide, carrying only the governorship of Lima's neighboring port city, Callao.

  ''The results show that the entire country wants change in policies and the social orientation of the government's actions,'' he said.

  García said APRA will not become an anti-government bloc, despite its strength. The party won nearly all the departments, Peru's equivalent of U.S. states, along the coast, and in areas that traditionally have spurned the party.

  It carried the highland department of Ayacucho, where the Maoist Shining Path got its start in 1980, and Arequipa, Peru's second most important department.

  Arequipa was the scene of anti-government riots in June that left two people dead and nearly $100 million in damages. The riots were in response to the government's policy of selling off state-owned companies.

  It also carried the department of Ancash and Cajamarca, where Peru's largest mines -- and hard currency earners -- are located. Alberto Adrianzén, a local political analyst, says the major test for APRA will be its ability to lure new investment and its dealings with the business community.

  ''The challenge will be economic reactivation, and you can only do this with investment. Whatever happens will reflect on García. He will enjoy the success of local
  leaders, but also pay the price if they fail,'' Adrianzén said.

  García already is being touted as the candidate to beat, but the party will have to prove itself first at the local level.