Editing Economy of Peru (section)

==History==
{{Main|Economic history of Peru}}
[[File:Historic GDP per capita in Peru.svg|thumb|Historic GDP per capita in Peru]]

===Inca Empire===

The Tahuantinsuyo (the ''Realm of the Four Parts''), popularly known as the [[Inca Empire]], was the largest civilization that emerged from the highlands of Peru in the early 13th century. The Spanish conquered the last Inca stronghold in 1572.

The Inca Empire employed [[central planning]]. Writing about the Inca tax system, Spanish chronicler [[Pedro Cieza de León]] said "the system the Incas employed was so good that the people did not feel it, and prospered ... [A]ll this was accomplished in such orderly fashion that neither did the natives fail to pay what they owed and were assessed, nor did those who collected these tributes venture to take one grain of corn in excess".<ref name="StarnKirk2009">{{cite book|last1=Starn|first1=Orin|url={{google books |plainurl=y |id=YyNo4Nsh_qQC}}|title=The Peru Reader: History, Culture, Politics|last2=Kirk|first2=Carlos Iván|last3=Degregori|first3=Carlos Iván|date=2009|publisher=Duke University Press|isbn=978-0-8223-8750-3}}</ref> Officials would travel to cities and provinces where they would be provided [[quipu]]s storing data, with Inca territories contributing what was possible; whether it be labor (''[[mit'a]]''), textiles, food, weapons or construction materials.<ref name="StarnKirk2009" /> Regarding labor, provinces would provide men to be employed by the empire who required to be married so their wives could maintain home life.<ref name="StarnKirk2009" /> Citizens were not exposed to [[overwork]] as individuals who became ill would be returned and replaced by their home province while many days of a month were dedicated to recreation and feasts.<ref name="StarnKirk2009" />

=== Viceroyalty of Peru ===
[[File:Phillips, Richard - Bozal - From The present state of Peru - 1805.jpg|left|thumb|197x197px|[[Bozal Spanish|''Bozal'']] African in Lima, 1805]]
The economy of the Viceroyalty of Peru largely depended on the export of silver.<ref>[http://www.britannica.com/EBchecked/topic/453253/Viceroyalty-of-Peru Viceryoalty of Peru], Encyclopedia Britannica. Academic edition. 2011.</ref> The huge amounts of silver exported from the Viceroyalty of Peru and Mexico deeply affected Europe, where some scholars believe it caused the so-called [[price revolution]].<ref name="Garner">Garner, Richard L. Long-Term  Silver Mining Trends in Spanish America: A Comparative Analysis of Peru and Mexico</ref> Silver mining was carried out using contract and free wage labourers,<ref>{{Cite book |last=Cook |first=Noble David |author-link=Noble David Cook |title=Demographic collapse, Indian Perú, 1520–1620 |publisher=Cambridge University Press |year=1981 |isbn=0-521-23995-8 |page=237}} </ref> as well as the ''[[encomienda]]'' system of [[slavery]].<ref name="Britannica">{{cite encyclopedia|date=26 September 2008|title=Encomienda|url=https://academic.eb.com/levels/collegiate/article/encomienda/32596|url-status=live|archive-url=https://web.archive.org/web/20190121232945/https://academic.eb.com/levels/collegiate/article/encomienda/32596|archive-date=21 January 2019|access-date=21 January 2019|encyclopedia=Encyclopædia Britannica}}</ref> The ''encomienda'' has been described as constituting [[genocide]].<ref>Raphael Lemkin's History of Genocide and Colonialism, Holocaust Memorial Museum https://www.ushmm.org/confront-genocide/speakers-and-events/all-speakers-and-events/raphael-lemkin-history-of-genocide-and-colonialism {{dead link|date=December 2019 |bot=InternetArchiveBot |fix-attempted=yes}}</ref><ref>{{cite journal|last1=Yeager|first1=Timothy J.|date=December 1995|title=Encomienda or Slavery? The Spanish Crown's Choice of Labor Organization in Sixteenth-Century Spanish America |journal=The Journal of Economic History|volume=55|issue=4|pages=842–859|doi=10.1017/S0022050700042182|jstor=2123819|s2cid=155030781}}</ref><ref>{{cite book|last=Stannard|first=David E.|url=https://books.google.com/books?id=RzFsODcGjfcC&pg=PA139|title=American Holocaust: The Conquest of the New World|date=1993|publisher=[[Oxford University Press]]|isbn=978-0195085570|page=139|author-link=David Stannard|access-date=10 November 2020|archive-url=https://web.archive.org/web/20201125185835/https://books.google.com/books?id=RzFsODcGjfcC&pg=PA139|archive-date=25 November 2020|url-status=live}}</ref> Under the Spanish system, Cieza de León wrote that "with the disorder and greed of the Spaniards, the number of the people has fallen off to such a degree that most of them have disappeared, and they will be wiped out completely as a result of the covetousness and greed".<ref name="StarnKirk2009" /> [[Afro-Peruvian]]s also appeared as a result of [[slavery in colonial Spanish America]].<ref>Lockhart, James. ''Spanish Peru, 1532–1560: A Social History'', 2nd ed., Madison, Wis., University of Wisconsin Press, 1994 p. 196</ref> Silver production peaked in 1610.<ref name="Garner" />

Prussian explorer [[Alexander von Humboldt]] first encountered [[guano]] in 1802 and started fertilizer research [[Callao]] in Peru, with his findings being reported throughout Europe.{{sfn|Cushman|2013|p=26}}

=== 19th century ===

====Guano Era====
{{Main|Guano Era}}
[[File:Carguio de guano en las islas Chincha..jpg|thumb|The [[Chincha Islands]], a large source of [[guano]], 1866]]
After winning independence from Spain on 28 July 1821, Peru was financially strapped. Additionally, the economy suffered from the collapse of the silver mines.<ref>{{cite book|author=Baten, Jörg |title=A History of the Global Economy. From 1500 to the Present.|date=2016|publisher=Cambridge University Press|page=132|isbn=9781107507180}}</ref> However, the guano trade with Europe, beginning in the 1840s, flooded Peru with European investments and money. In 1840, Peruvian politician and entrepreneur Francisco Quirós y Ampudia commercialized guano exports in a deal with French businessmen and the Peruvian government, abolishing existing claims to Peruvian guano. Guano was essentially [[Nationalization|nationalized]] and became Peru's largest revenue source.{{sfn|Cushman|2013|pp=40–43}}  Despite the near exhaustion of guano, Peru achieved its greatest ever export of guano in 1870, with more than 700,000 tonnes (770,000 short tons).{{sfn|Cushman|2013|pp=59–60}}

====War of the Pacific====
{{main|War of the Pacific}}
{{see also|Peruvian Salpeter Monopoly}}

Chile was devastated by the [[Long Depression]] economic crisis of the 1870s<ref name="salazar">''Historia contemporánea de Chile III. La economía: mercados empresarios y trabajadores.'' 2002. Gabriel Salazar and Julio Pinto. pp. 25–29.</ref> and began looking for a replacement for its silver, copper and wheat exports.<ref name="salazarpinto25-29">Salazar & Pinto 2002, pp. 25–29.</ref> It has been argued that Chile's economic situation and the prospect of new wealth in nitrates were the true reasons for the Chilean elite to go to war against Peru and Bolivia,<ref name="salazarpinto25-29" /><ref>{{Citation|last=Pinto Rodríguez|first=Jorge|title=Crisis económica y expansión territorial : la ocupación de la Araucanía en la segunda mitad del siglo XIX|journal=Estudios Sociales|volume=72|year=1992|author-link=Jorge Pinto Rodríguez}}</ref><ref name="salazar2">''Historia contemporánea de Chile III. La economía: mercados empresarios y trabajadores.'' 2002. [[Gabriel Salazar]] and [[Julio Pinto]]. p. 25-29.</ref> with most historians agreeing that the Chilean government's [[Chilean expansionism|expansionist]] foreign policy and its ambitions to control Atacama's mineral wealth led to the conflict .<ref>J.R. Brown, "The Frustration of Chile's Nitrate Imperialism," ''Pacific Historical Review'' (University of California Press), Vol. 32, No. 4 (November 1963), pp. 383–396.</ref><ref>Riet Delsing, "Issues of Land and Sovereignty: The Uneasy Relationship Between Chile and Rapa Nui," in ''Decolonizing Native Histories'', ed. Florencia Mallon (Durham, North Carolina: Duke University Press, 2012), p. 56.</ref><ref>Robert N. Burr, ''By Reason or Force'' (1974), pp. 138–139.</ref>

Chile won the war and with the [[Treaty of Ancón]] of 1884, the War of the Pacific ended. Chile obtained half of Peru's guano income from the 1880s and its guano islands, with Chile taking control over the most valuable nitrogen resources in the world.{{sfn|Cushman|2013|p=73}} Chile's national treasury would increase 900% from 1879 to 1902 due to the newly acquired lands.<ref name="Crow">{{cite book|last=Crow|first=J. A.|title=The Epic of Latin America|page=180}}</ref> Meanwhile, Peru's reliance on commodity exports – which continued through its history – resulted the bankruptcy of its economy.<ref name="CL" /> Peru would go on to approve the [[Grace Contract]], which granted ownership of Peru's railroads to holders of sovereign debt, with the Peruvian government not issuing new sovereign debt until 1906.<ref name="SVW">{{cite book|last1=Sicotte|first1=Richard|url=https://www.uvm.edu/~econ/documents/SVWRevisionfinal.pdf|title=Military Conquest and Sovereign Debt: Chile, Peru and the London Bond Market, 1876–1890|last2=Vizcarra|first2=Catalina|last3=Wandschneider|first3=Kirsten|date=2009|publisher=University of Vermont|page=42|access-date=25 August 2016|archive-url=https://web.archive.org/web/20160227171904/http://blog.pucp.edu.pe/blog/hpereyra/2014/12/31/la-pol-tica-salitrera-del-presidente-manuel-pardo-el-tratado-chileno-boliviano-de-1874-su-violaci-n-y-el-comienzo-de-la-guerra-del-pac-fico/|archive-date=27 February 2016|url-status=dead}}</ref>

=== 20th century ===

==== Amazon rubber boom ====
{{Further|Amazon rubber boom}}
Into the twentieth century, [[Anglo-Peruvian Amazon Rubber Co]] in [[Iquitos]] began to market rubber internationally. The rubber boom brought regions of [[Amazonia]] into the international market.<ref>{{Cite journal|last1=Coomes|first1=Oliver T.|last2=Barham|first2=Bradford L.|date=May 1994|title=The Amazon Rubber Boom: Labor Control, Resistance, and Failed Plantation Development Revisited|journal=[[The Hispanic American Historical Review]]|volume=74|issue=2|pages=231–257|doi=10.1215/00182168-74.2.231|doi-access=free}}</ref> The Government of Peru ceded to the Anglo-Peruvian Amazon Rubber Co the Amazon territories north of [[Loreto, Peru|Loreto]], after the company's founder [[Julio César Arana]] purchased the land. During the rubber boom the [[Putumayo Genocide]] was committed by Anglo-Peruvian Amazon Rubber Co. Between 40,000 and 250,000 indigenous peoples were killed, with many being sent to [[labor camp]]s; ninety percent of the affected Amazonian populations were annihilated.<ref name="BBC1">{{cite news|date=12 October 2012|title=Cien años después, la Amazonía recuerda uno de sus episodios más trágicos|language=es|work=[[BBC News]]|url=https://www.bbc.com/mundo/noticias/2012/10/121012_colombia_genocidio_casa_arana_caucho_amazonia_aw|access-date=30 July 2021}}</ref><ref>{{cite web|last1=White|first1=Matthew|date=15 July 2019|title=Twentieth Century Atlas – Death Tolls|url=http://necrometrics.com/20c100k.htm#Amaz|access-date=30 July 2021|website=Necrometrics}}</ref><ref name="ElTiempo">{{cite news|date=7 October 2012|title=Cien años de la matanza de La Chorrera, Amazonas|language=spanish|work=[[El Tiempo (Colombia)|El Tiempo]]|url=https://www.eltiempo.com/archivo/documento/CMS-12288557|access-date=30 July 2021}}</ref>

====World War I and II eras====
In the early 1910s, Peru enjoyed a growing economy due to mining and crop production, with a working class developing at the time.<ref name="CH">{{Cite web|title=Commanding Heights: Peru|url=https://www.pbs.org/wgbh/commandingheights/lo/countries/pe/pe_full.html|access-date=14 October 2021|website=[[PBS NewsHour]]}}</ref> Following the outbreak of [[World War I]], international markets became turbulent and Peru experienced a recession and a series of coups occurred through the mid and late-1910s.<ref name="CH" /> [[Augusto B. Leguía]], a member of Peru's [[oligarchy]], then took power through a coup and essentially assumed dictatorial powers, writing a new constitution; Leguía would often ignore the constitution through his acts, however.<ref name="CH" /><ref>{{Cite web|title=Augusto Bernardino Leguía y Salcedo {{!}} president of Peru|url=https://www.britannica.com/biography/Augusto-Bernardino-Leguia-y-Salcedo|access-date=14 October 2021|website=[[Encyclopædia Britannica]]|language=en}}</ref> [[Víctor Raúl Haya de la Torre]] founded the [[American Popular Revolutionary Alliance|American Popular Revolutionary Alliance (APRA)]] calling for reforms, though Leguía quickly banned the party.<ref name="CH" /> Leguía increased spending to modernize Peru, though this also raised national debt and with the addition of the [[Great Depression]] in 1929, he was overthrown soon-after in 1930 by [[Luis Miguel Sánchez Cerro]].<ref name="CH" />

Sánchez announced a [[debt moratorium]] on US$180&nbsp;million and Peru was banned from markets in the United States as a result.<ref name="CH" /> The Sánchez government also continued the repression of APRA, resulting in an Aprista party member assassinating Sánchez.<ref name="CH" /> [[Óscar R. Benavides]] was chosen by the constituent assembly to finish Sánchez's term and intensified persecution of left-wing groups, resulting in increased support for the [[Peruvian Communist Party|Peruvian Communist Party (PCP)]] among indigenous and labor groups.<ref name="CH" /> As Peru's economy grew, a banker in Lima, [[Manuel Prado Ugarteche]], was elected into the presidency in the [[1939 Peruvian general election]].<ref name="CH" />

President Prado adopted a softer tone on APRA while Aprista leader [[Víctor Raúl Haya de la Torre|Haya de la Torre]] also espoused more moderate policy and support for foreign markets.<ref name="CH" /> APRA was made a legal party in 1945 and in [[José Luis Bustamante y Rivero]] was [[1945 Peruvian general election|elected the same year]], making an Aprista politician the Minister of the Economy.<ref name="CH" /> Subsequently, the Bustamante greatly increased[[economic interventionism]] to include [[price controls]] and a [[foreign exchange controls]], which appeared beside a slowing economy, resulting in increased inflation.<ref name="CH" />

==== Military ''juntas'' and first Belaúnde government ====
Over the next two decades, [[Military juntas|military ''juntas'']] controlled Peru. On 29 October 1948, General [[Manuel A. Odría]] led a successful military coup against Bustamante and assumes the presidency until 1956. Odría's government experienced a growing economy due to a commodity boom, though many of the government's investments remained in coastal cities while unrest increased among interior and Andean regions that remained impoverished.<ref name="CH" /> Haya de la Torre – whose APRA party had drifted even more to right-wing politics at this time – won the [[1962 Peruvian general election]] against [[Fernando Belaúnde]], founder of the right-wing [[Popular Action (Peru)|Popular Action]], though Haya de la Torre was unable to take office due to [[1962 Peruvian coup d'état|a military coup]] opposed to APRA.

After a brief military government, Belaúnde won the [[1963 Peruvian general election]], with his government making modest improvements by increasing industrialization and constructing highways into the Andes.<ref name="CH" /> Belaúnde held a doctrine called "''The Conquest of Peru by Peruvians''", which promoted the exploitation of resources in the Amazon and other outlying areas of Peru through [[conquest]].<ref name="BA">{{Cite web|last=Dourojeanni|first=Marc J.|date=12 June 2017|title=Belaúnde en la Amazonía|url=https://www.caaap.org.pe/2017/06/12/belaunde-en-la-amazonia-por-marc-j-dourojeanni/|access-date=14 October 2021|website=Centro Amazónico de Antropología y Aplicación Práctica (CAAAP)|language=es|archive-date=28 October 2021|archive-url=https://web.archive.org/web/20211028170325/https://www.caaap.org.pe/2017/06/12/belaunde-en-la-amazonia-por-marc-j-dourojeanni/|url-status=dead}}</ref> In one 1964 incident called the [[:es:Genocidio matsé|Matsé genocide]], the Belaúnde administration targeted the [[Matsés]] after two loggers were killed, with the Peruvian armed forces and American fighter planes dropping [[napalm]] on the indigenous groups armed with bows and arrows, killing hundreds.<ref name="BA" /><ref>{{Cite web|date=19 April 2017|title=El día en el que Fernando Belaúnde mandó a matar a cientos de nativos|url=https://www.diariovoces.com.pe/79158/dia-fernando-belaunde-mando-matar-cientos-nativos|access-date=14 October 2021|website=Diario Voces|language=es}}</ref> Belaúnde's economic measures were received with disapproval from rural and peasant Peruvians.<ref name="CH" /> His government's reliance on resource exports, especially with the fishing industry, resulted in increased inflation and a growing deficit.<ref name="CH" /> Amid this conflict, general [[Juan Velasco Alvarado]] overthrows the Belaúnde in the [[1968 Peruvian coup d'état]] .<ref name="CH" />

====Revolutionary Government of the Armed Forces====

Velasco established the Revolutionary Government of the Armed Forces and it adopted a [[state capitalism]] economic policy amid a period of [[economic expansion]].<ref name="EL">{{Cite book|last1=Gutiérrez Sanín|first1=Francisco|title=Economic Liberalization and Political Violence: Utopia Or Dystopia?|last2=Schönwälder|first2=Gerd|publisher=[[International Development Research Centre]]|year=2010|isbn=978-0745330631|pages=256–284}}</ref> The government immediately instituted [[land reform]] initiatives, establishing one of the most ambitious [[land tenure]] projects in the history of Latin America.<ref name="EL" /> The land reform projects removed the traditional ''[[hacienda]]'' system that resembled landowners imposing a [[serfdom]] on peasants and replaced it with [[agricultural cooperative]]s called Agricultural Social-Interest Societies (SAIS).<ref name="EL" /> The Velasco government took a structural approach; it invested in infrastructure and began a widespread [[Nationalize|nationalization]] campaign of key economic production sectors, education and the media.<ref name="CH" /><ref name="EL" /> A [[fixed exchange rate system]] was adopted and the national debt began to increase dramatically.<ref name="EL" /> A combination of debt, inflation and the [[1973 oil crisis]] induced an economic crisis in the Velasco government, with General [[Francisco Morales-Bermúdez]] overthrowing Velasco in the [[Tacnazo]].<ref name="CH" /><ref name="EL" />

Bermúdez in name led the Second Revolutionary Government of the Armed Forces, with his government introducing [[austerity measures]] and removing state capitalist systems.<ref name="CH" /><ref name="EL" /> This government began monetary adjustment and started with negotiations on foreign debt.<ref name="EL" /> However, corruption scandals and widespread protests broke out and the military government agreed to transition Peru back into a democratic political system.<ref name="EL" />

==== The Lost Decade ====
{{Main|Lost Decade (Peru)}}
In 1980, after twelve years of military rule, Fernando Belaúnde Terry was [[1980 Peruvian general election|elected president]] for a second time.<ref name="EL" /> On the day of the election, [[Shining Path]] launched its armed struggle in [[Chuschi]] with a [[Chuschi ballot burning incident|ballot burning incident]], essentially beginning the [[internal conflict in Peru]].<ref name="EL" /> Belaúnde's used a [[floating exchange rate]] and used [[populist]] policies, primarily relying on key exports.<ref name="EL" /> His government continued to reverse Velasco's existing policies and some economic liberalization.<ref name="EL" /> However, Belaúnde's government could not develop a monetary policy, failed at managing state-run entities and faced a growing external debt, leaving Peru in a vulnerable state.<ref name="EL" />

[[Alan García]] was elected president in the [[1985 Peruvian general election]] and the first Aprista president in over sixty years. His administration adopted a neo-structuralist economic policy, with the government funding the private sector to enhance economic performance, increasing welfare spending and instituting price controls; this resulted with temporary economic growth, though Peru's national debt grew dramatically.<ref name="EL" /> By 1989, inflation reached almost 3,000 percent and 7,000 percent in 1990, with Peru experiencing a GDP loss of twenty-four percent in the last three years of García's tenure.<ref name="EL" /> With the growing economic crisis and the terrorist Shining Path gaining territory in an armed conflict with the Peruvian government, the idea of a leader with a "heavy hand" became more attractive to Peruvians according to Gutiérrez Sanín and Schönwälder.<ref name="EL" />

The Peruvian armed forces grew frustrated with the inability of the García administration to handle the nation's crises and began to draft a plan to overthrow his government.<ref name="UA" /><ref name="Alfredo">{{cite book|author=Alfredo Schulte-Bockholt|title=The politics of organized crime and the organized crime of politics: a study in criminal power|publisher=Lexington Books|year=2006|isbn=978-0-7391-1358-5|pages=114–118|chapter=Chapter 5: Elites, Cocaine, and Power in Colombia and Peru|quote=important members of the officer corps, particularly within the army, had been contemplating a military coup and the establishment of an authoritarian regime, or a so-called directed democracy. The project was known as 'Plan Verde', the Green Plan. ... Fujimori essentially adopted the 'Plan Verde,' and the military became a partner in the regime. ... The autogolpe, or self-coup, of April 5, 1992, dissolved the Congress and the country's constitution and allowed for the implementation of the most important components of the 'Plan Verde.'}}</ref> According to Peruvian sociologist and political analyst Fernando Rospigliosi, Peru's business elites held relationships with the military planners, with Rospigliosi writing that businesses "probably provided the economic ideas which [the military] agreed with, the necessity of a liberal economic program as well as the installment of an authoritarian government which would impose order".<ref name="DI">{{Cite journal|last=Avilés|first=William|date=Spring 2009|title=Despite Insurgency: Reducing Military Prerogatives in Colombia and Peru|journal=[[Latin American Politics and Society]]|publisher=[[Cambridge University Press]]|volume=51|issue=1|pages=57–85|doi=10.1111/j.1548-2456.2009.00040.x|s2cid=154153310}}</ref> Thus, [[Plan Verde]] was drafted at the end of the García presidency; the objectives evolved into establishing a civilian-military government with a [[neoliberal]] economic policy.

==== Fujimori government ====
{{Further|Plan Verde}}{{Main|Economic policy of the Alberto Fujimori administration}}
During his campaigning for the 1990 election, [[Alberto Fujimori]] expressed concern against the proposed neoliberal policies of his opponent [[Mario Vargas Llosa]].<ref>{{cite web|date=14 April 1990|title=La frugalidad de "Cambio 90" y el derroche de Fredemo|url=http://www.proceso.com.mx/154825/la-frugalidad-de-cambio-90-y-el-derroche-de-fredemo|access-date=27 December 2017|publisher=El Proceso|language=es|archive-date=20 September 2018|archive-url=https://web.archive.org/web/20180920122715/https://www.proceso.com.mx/154825/la-frugalidad-de-cambio-90-y-el-derroche-de-fredemo|url-status=dead}}</ref> Peruvian magazine ''[[Oiga (magazine)|Oiga]]'' reported that following the election, the armed forces were unsure of Fujimori's willingness to fulfill their objectives outlined in Plan Verde and it was reported that the meeting held a negotiatory meeting with him to ensure that Fujimori followed their direction.<ref name="PV" /><ref>{{Cite book|last=Rospigliosi|first=Fernando|title=Las Fuerzas Armadas y el 5 de abril: la percepción de la amenaza subversiva como una motivación golpista|publisher=Instituto de Estudios Peruanos|year=1996|location=Lima, Peru|pages=28–40}}</ref> After taking office, Fujimori abandoned the economic platform he promoted during his campaign, adopting more aggressive neoliberal policies than those espoused by Vargas Llosa, his competitor in the election.<ref name="gouge32">Gouge, Thomas. ''Exodus from Capitalism: The End of Inflation and Debt''. 2003, page 363.</ref> Fujimori would go on to adopt many of the policies outlined in Plan Verde.<ref name="Alfredo" /><ref name="DI" /> Fujimori ultimately served as president from 28 July 1990 to 17 November 2000.

Fujimori is often credited with defeating the [[Shining Path]] terrorist group in Peru and restoring its [[Macroeconomics|macroeconomic]] stability.<ref>Fox, Elizabeth, and Fox, de Cardona and Waisbord, Silvio Ricardo. ''Latin Politics, Global Media''. 2002, p. 154</ref><ref>Hough, Peter. ''Understanding Global Security''. 2008, pp. 79–80</ref><ref>{{Cite news|date=8 December 2007|title=Ex-President's Trial a Moment of Truth|work=Fox News|url=http://www.foxnews.com/printer_friendly_wires/2007Dec09/0,4675,PeruFujimoriTrial,00.html}}</ref><ref>[http://news.bbc.co.uk/1/hi/world/americas/705482.stm Fujimori's controversial career], BBC News, 18 September 2000. Retrieved 4 November 2006.</ref> Fujimori's economic policy was largely adopted from the advice of Peruvian economist [[Hernando de Soto (economist)|Hernando de Soto]], who prescribed economic guidelines – including the loosening of [[economic regulation]], the introduction of [[austerity]] measures and the use of neoliberal policies – that were ultimately adopted by the Fujimori administration and established in the [[Constitution of Peru|1993 Constitution of Peru]].<ref>{{Cite web|last=Burt|first=Jo-Marie|date=25 September 2007|title=Peru: Facade of Democracy Crumbles|url=https://nacla.org/article/peru-facade-democracy-crumbles|access-date=11 December 2020|website=[[NACLA]]|language=en|archive-date=9 September 2020|archive-url=https://web.archive.org/web/20200909193844/https://nacla.org/article/peru-facade-democracy-crumbles|url-status=dead}}</ref><ref>{{Cite news|last1=Brooke|first1=James|date=27 November 1990|title=A Peruvian Is Laying Out Another Path|language=en-US|work=The New York Times|url=https://www.nytimes.com/1990/11/27/world/a-peruvian-is-laying-out-another-path.html|access-date=26 September 2020|issn=0362-4331}}</ref><ref>{{cite book|last1=Stokes|first1=Susan|title=Are Parties What's Wrong with Democracy in Latin America?|year=1997 |citeseerx=10.1.1.569.1490}}</ref><ref>{{Cite web|last=Borda|first=Luis|date=8 May 2016|title=Hernando de Soto: "Alberto Fujimori fue víctima de la seducción de Montesinos"|url=https://rpp.pe/politica/elecciones/hernando-de-soto-alberto-fujimori-fue-victima-de-la-seduccion-de-montesinos-noticia-960476|access-date=11 December 2020|website=[[RPP (Peru)]]|language=es}}</ref> Although economic statistics show improved economic data in Peru in recent decades, the wealth earned between 1990 and 2020 was not distributed throughout the country; living standards showed disparities between the more-developed capital city of Lima and similar coastal regions while rural provinces remained impoverished.<ref>{{Cite web |date=3 June 2021 |title=Buenos Aires Times {{!}} Inequality fuels rural teacher's unlikely bid to upend Peru |url=https://batimes.com.ar/news/latin-america/inequality-fuels-a-rural-teachers-unlikely-bid-to-upend-peru.phtml |url-status=live |archive-url=https://web.archive.org/web/20210604101055/https://batimes.com.ar/news/latin-america/inequality-fuels-a-rural-teachers-unlikely-bid-to-upend-peru.phtml |archive-date=4 June 2021 |access-date=4 June 2021 |website=[[Buenos Aires Times]] |publisher=[[Bloomberg.com|Bloomberg]]}}</ref><ref>{{Cite web |last=O’Boyle |first=Brendan |date=3 May 2021 |title=Pedro Castillo and the 500-Year-Old Lima vs Rural Divide |url=https://www.americasquarterly.org/article/pedro-castillo-and-the-500-year-old-lima-vs-rural-divide/ |url-status=live |archive-url=https://web.archive.org/web/20210603100944/https://www.americasquarterly.org/article/pedro-castillo-and-the-500-year-old-lima-vs-rural-divide/ |archive-date=3 June 2021 |access-date=3 June 2021 |website=[[Americas Quarterly]] |language=en-US}}</ref>

=== 21st century ===
[[File:Peru bonds.webp|300px|thumb|Peru bonds
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==== Lima Consensus ====
{{Main|Lima Consensus}}
Initially established by the Fujimori administration, the Lima Consensus focused on [[deregulation]] and [[privatization]] with the goal of establishing a [[neoliberal]] economy, all while limiting the involvement of the government in the [[public sector]].<ref name="CL" /><ref name="HP" /> As the [[Washington Consensus]] lost popularity in the 2000s, a more defined Lima Consensus began to emerge in Peru as the economy simultaneously improved during the [[2000s commodities boom]].<ref name="EC">{{Cite web|date=11 May 2013|title=El Consenso de Lima|trans-title=The Lima Consensus|url=https://larepublica.pe/archivo/710401-el-consenso-de-lima/|access-date=23 February 2022|website=[[La República (Peru)|La Republica]]|language=es|location=Lima}}</ref> While Latin American governments invested into [[social programs]] for education, healthcare and poverty programs in the early 21st century, Peru under the Consensus chose to cut social programs.<ref name="FT" /><ref>{{Cite web|last=Holland|first=Lynn|date=30 July 2014|title=The House on the Mountain: How Mining Corrodes Democracy in Peru|url=https://www.coha.org/the-house-on-the-mountain-how-mining-corrodes-democracy-in-peru/|access-date=23 February 2022|website=[[Council on Hemispheric Affairs]]|language=en-US}}</ref> President [[Alejandro Toledo]] continued to promote the [[decentralization]] of Peru,<ref name="CL" /> while the former [[social democrat]] [[Alan García]] took implementation of the consensus even further, adopting policies similar to [[Augusto Pinochet]].<ref name="HP" /><ref name="EC" /> [[Keiko Fujimori]], the daughter of Alberto Fujimori, has been a major proponent for the Lima Consensus, using the support of neoliberal economist [[Hernando de Soto (economist)|Hernando de Soto]] to support her position during her elections.<ref name="PC" /> This lack of state intervention as promoted by the Consensus has resulted with a weak government with poor performance, with many Peruvians experiencing insufficient basic services such as education, justice and security while corruption, crime, [[crony capitalism]] and [[economic inequality]] increased as many political officials frequently moving between business and government positions without oversight.<ref name="FT" /><ref name="HP" />

Following the [[2021 Peruvian general election]] that saw lefitst candidate [[Pedro Castillo]] elected into the presidency, [[Fitch Solutions]] warned that his election posed "substantial risks to the 'Lima Consensus', the investor-friendly economic policy framework that has persisted over the last 20 years".<ref>{{Cite book|title=Peru country risk report – Q4 2021|publisher=[[Fitch Solutions]]|year=2021|location=London|pages=45}}</ref>