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===Terrorism and the ''Fujimorato'' (1980–2000)=== {{main|History of Peru (1980–2000)|Peruvian conflict}} During the 1980s, cultivation of illicit coca was established in large areas on the eastern Andean slope. Rural insurgent movements, like the [[Shining Path]] (''Sendero Luminoso'', SL) and the [[Túpac Amaru Revolutionary Movement]] (MRTA) increased and derived significant financial support from alliances with the narcotics traffickers, leading to the [[Internal conflict in Peru]].<ref>{{Cite news |title=Qué es el maoísmo, la ideología en la que se inspiró Abimael Guzmán y por la que desencadenó en Perú una guerra sangrienta |language=es |work=BBC News Mundo |url=https://www.bbc.com/mundo/noticias-america-latina-58182449 |access-date=2022-07-18}}</ref><ref>{{Cite journal |last=Sierra |first=Jerónimo Ríos |date=2018-12-20 |title=Sendero Luminoso: Una apología de la violencia |url=https://revistadeculturadepaz.com/index.php/culturapaz/article/view/22 |journal=Revista de Cultura de paz |language=es |volume=2 |pages=277–294 |issn=2631-2700}}</ref> In the May 1980 elections, President [[Fernando Belaúnde Terry]] was returned to office by a strong plurality.<ref>{{Cite news |title=El belaundismo y el apoyo institucional a la gestión popular (1980-1985) |language=es |work=Desco |url=http://www.desco.org.pe/el-belaundismo-y-el-apoyo-institucional-a-la-gestion-popular-1980-1985 |access-date=2022-07-18}}</ref><ref>{{Cite news |last=PERÚ |first=NOTICIAS EL COMERCIO |date=2021-07-23 |title=Vuelve la democracia: presidente Belaunde asumió mando ayer en imponente ceremonia |url=https://elcomercio.pe/bicentenario/1980-l-vuelve-la-democracia-presidente-belaunde-asumio-mando-ayer-en-imponente-ceremonia-l-bicentenario-noticia/ |access-date=2022-07-18 |newspaper=El Comercio |language=es}}</ref> One of his first actions as president was the return of several newspapers to their respective owners.<ref>{{Cite news |last=PERÚ |first=NOTICIAS EL COMERCIO |date=2014-11-11 |title=Así Ocurrió: En 1980 se firma la Ley que devuelve los diarios {{!}} POLITICA |url=https://elcomercio.pe/politica/gobierno/ocurrio-1980-firma-ley-devuelve-diarios-299438-noticia/ |access-date=2022-07-18 |newspaper=El Comercio |language=es}}</ref> In this way, [[freedom of speech]] once again played an important part in Peruvian politics. Gradually, he also attempted to undo some of the most radical effects of the ''Agrarian Reform'' initiated by Velasco and reversed the independent stance that the military government of Velasco had with the United States. Belaúnde's second term was also marked by the unconditional support for [[Argentina|Argentine]] forces during the [[Falklands War]] with the United Kingdom in 1982.<ref>{{Cite news |last=PERÚ |first=NOTICIAS EL COMERCIO |date=2021-10-15 |title=Argentina vs Perú: La historia de cómo se gestó el apoyo del Perú a Argentina en la Guerra de las Malvinas {{!}} MUNDO |url=https://elcomercio.pe/mundo/latinoamerica/argentina-vs-peru-la-historia-de-como-se-gesto-el-apoyo-del-peru-a-argentina-en-la-guerra-de-las-malvinas-noticia/ |access-date=2022-07-21 |newspaper=El Comercio |language=es}}</ref><ref>{{Cite web |title=La historia detrás de la histórica bandera de Perú en apoyo a Argentina en la Guerra de Malvinas - TyC Sports |url=https://www.tycsports.com/interes-general/-la-historia-detras-de-la-historica-bandera-de-peru-en-apoyo-a-argentina-en-la-guerra-de-malvinas-id423996.html |access-date=2022-07-21 |website=tycsports.com|date=2 April 2022 }}</ref> Belaúnde declared that "Peru was ready to support Argentina with all the resources it needed". This included a number of fighter planes and possibly personnel from the [[Peruvian Air Force]], as well as ships, and medical teams. Belaunde's government proposed a peace settlement between the two countries, but it was rejected by both sides, as both claimed undiluted sovereignty of the territory. In response to [[Chile]]'s support of the UK, Belaúnde called for Latin American unity. The nagging economic problems left over from the previous military government persisted, worsened by an occurrence of the "[[El Niño]]" weather phenomenon in 1982–83, which caused widespread flooding in some parts of the country, severe droughts in others, and decimated the schools of ocean fish that are one of the country's major resources. After a promising beginning, Belaúnde's popularity eroded under the stress of inflation, economic hardship, and terrorism. In 1985, the [[American Popular Revolutionary Alliance]] (APRA) won the presidential election, bringing [[Alan García]] to office.<ref>{{Cite web |date=2008-09-01 |title=El giro del APRA y de Alan García {{!}} Nueva Sociedad |url=https://nuso.org/articulo/el-giro-del-apra-y-de-alan-garcia/ |access-date=2022-07-21 |website=Nueva Sociedad {{!}} Democracia y política en América Latina}}</ref><ref>{{Cite news |title=Alan García, el presidente de la hiperinflación y la reducción de la pobreza en Perú que se suicidó en medio de un escándalo de corrupción |language=es |work=BBC News Mundo |url=https://www.bbc.com/mundo/noticias-america-latina-47965454 |access-date=2022-07-21}}</ref> The transfer of the presidency from Belaúnde to García on 28 July 1985 was Peru's first exchange of power from one democratically elected leader to another in 40 years. With a parliamentary majority for the first time in APRA's history, Alan García started [[First presidency of Alan García|his administration]] with hopes for a better future. However, economic mismanagement led to [[hyperinflation]] from 1988 to 1990. García's term in office was marked by bouts of hyperinflation, which reached 7,649% in 1990 and had a cumulative total of 2,200,200% between July 1985 and July 1990, thereby profoundly destabilizing the Peruvian economy. Owing to such [[chronic inflation]], the Peruvian currency, the [[Peruvian sol (1863–1985)|sol]], was replaced by the ''[[Inti (currency)|Inti]]'' in mid-1985,<ref>{{Cite web |last=Infomercado |date=2021-02-01 |title=Los 36 años del Inti: la moneda de la hiperinflación en el gobierno de Alan García |url=https://infomercado.pe/los-36-anos-del-inti-la-moneda-de-la-hiperinflacion-en-el-gobierno-de-alan-garcia/ |access-date=2022-07-23 |website=Infomercado |language=es-pe}}</ref> which itself was replaced by the [[Peruvian nuevo sol|nuevo sol]] ("new sun") in July 1991,<ref>{{Cite news |last=Murillo |first=Ana |date=1990-11-21 |title=Perú prepara el cambio del inti por el 'nuevo sol' |language=es |work=El País |url=https://elpais.com/diario/1990/11/22/economia/659228412_850215.html |access-date=2022-07-23 |issn=1134-6582}}</ref><ref>{{Cite web |last=GESTIÓN |first=NOTICIAS |date=2015-04-15 |title=Del Inti al Nuevo sol: la evolución de una moneda {{!}} ECONOMIA |url=https://gestion.pe/economia/inti-nuevo-sol-evolucion-moneda-152739-noticia/ |access-date=2022-07-23 |website=Gestión |language=es}}</ref> at which time the new ''sol'' had a cumulative value of one billion old soles. During his administration, the ''per capita'' annual income of Peruvians fell to $720 (below the level of 1960) and Peru's [[Gross Domestic Product|GDP]] dropped 20%. By the end of his term, national reserves were a negative $900 million. The economic turbulence of the time exacerbated social tensions in Peru and partly contributed to the rise of the violent rebel movement [[Shining Path]]. The García administration unsuccessfully sought a military solution to the growing terrorism, committing human rights violations which are still under investigation. In June 1989, demonstrations for free education were severely repressed by the army: 18 people were killed according to official figures, but non-governmental estimates suggest several dozen deaths. This event led to a radicalization of political protests in the countryside and ultimately led to the outbreak of the Shining Path's armed and terrorist actions.<ref>Luis Rossell, Rupay: historias gráficas de la violencia en el Perú, 1980–1984, 2008</ref><ref>[[Julia Lovell]], ''Maoism: A Global History'' (2019) pp 306–346.</ref> ==== Fujimori's presidency and the Fujishock (1990–2000) ==== Concerned about the economy, the increasing terrorist threat from [[Shining Path|Sendero Luminoso]] and MRTA, and allegations of official corruption, voters chose a relatively unknown mathematician-turned-politician, [[Alberto Fujimori]], as president in 1990. The first round of the election was won by well-known writer [[Mario Vargas Llosa]], a conservative candidate who went on to receive the Nobel Prize in Literature in 2010, but Fujimori defeated him in the second round. Fujimori implemented drastic measures that caused inflation to drop from 7,650% in 1990 to 139% in 1991. The currency was devalued by 200%, prices were rising sharply (especially gasoline, whose price is multiplied by 30), hundreds of public companies were privatized and 300,000 jobs were being lost. The majority of the population had not benefited from the years of strong growth, which ultimately only widened the gap between rich and poor. The poverty rate remained at around 50%.{{NoteTag|The currency devalued by 200%, prices rose sharply (especially gasoline, whose price was multiplied by 30), hundreds of public companies were privatized and 300,000 jobs were lost. However, the social balance sheet remains much less positive. The majority of the population has not benefited from the years of strong growth, which will ultimately only widen the gap between rich and poor. The poverty rate remained at around 50%, a level comparable to Alan Garcia's completion rates.}} Fujimori dissolved Congress in the [[1992 Peruvian self-coup d'état|self-coup of 5 April 1992]],<ref>{{Cite news |last=PERÚ |first=NOTICIAS EL COMERCIO |date=2021-04-06 |title=¿Qué sucedió el 5 de abril de 1992 en el Perú? {{!}} Autogolpe {{!}} Alberto Fujimori {{!}} Constitución de 1993 {{!}} revtli {{!}} RESPUESTAS |url=https://elcomercio.pe/respuestas/que-sucedio-el-5-de-abril-de-1992-en-el-peru-autogolpe-alberto-fujimori-constitucion-de-1993-revtli-noticia/ |access-date=2022-07-23 |newspaper=El Comercio |language=es}}</ref> in order to have total control of the government of Peru.<ref>{{Cite web |last=Delgado |first=Sara |title=5 de abril de 1992: el autogolpe de Estado en Perú consolida el poder de Alberto Fujimori |url=https://elordenmundial.com/hoy-en-la-historia/5-abril/5-de-abril-de-1992-el-autogolpe-de-estado-en-peru-consolida-el-poder-de-alberto-fujimori/ |access-date=2022-07-23 |website=El Orden Mundial - EOM |date=5 April 2022 |language=es |archive-date=2022-09-30 |archive-url=https://web.archive.org/web/20220930054338/https://elordenmundial.com/hoy-en-la-historia/5-abril/5-de-abril-de-1992-el-autogolpe-de-estado-en-peru-consolida-el-poder-de-alberto-fujimori/ |url-status=dead }}</ref> He then eliminated the constitution; called new congressional elections; and implemented substantial economic reform, including privatization of numerous state-owned companies, creation of an investment-friendly climate, and sound management of the economy. Fujimori's administration was dogged by several insurgent groups, most notably Sendero Luminoso (Shining Path), which carried on a terrorist campaign in the countryside throughout the 1980s and 1990s. He cracked down on the insurgents and was successful in largely quelling them by the late 1990s, but the fight was marred by atrocities committed by both the Peruvian security forces and the insurgents: the [[Barrios Altos massacre]] and [[La Cantuta massacre]] by government paramilitary groups,<ref>{{Cite web |last=Jimenez |first=Amaranta Zermeno |date=2022-05-31 |title=Perú retoma la búsqueda de restos de víctimas de una masacre de 1992 |url=https://es.euronews.com/2022/05/31/la-fiscalia-de-peru-retoma-la-busqueda-de-las-victimas-de-la-masacre-de-la-cantuta-de-1992 |access-date=2022-07-26 |website=euronews |language=es}}</ref><ref>{{Cite web |date=2018-02-05 |title=¿Qué ocurrió en Barrios Altos y La Cantuta?: A propósito de la audiencia ante la Corte IDH* |url=https://idehpucp.pucp.edu.pe/analisis1/ocurrio-barrios-altos-la-cantuta-proposito-la-audiencia-ante-la-corte-idh/ |access-date=2022-07-26 |website=IDEHPUCP |language=es}}</ref> and the bombings of [[Tarata bombing|Tarata]] and [[Frecuencia Latina bombing|Frecuencia Latina]] by [[Shining Path]].<ref>{{Cite web |title=Caso Tarata: Sentencia marcará un hito histórico en la lucha contra el terrorismo |url=https://www.gob.pe/institucion/mininter/noticias/18801-caso-tarata-sentencia-marcara-un-hito-historico-en-la-lucha-contra-el-terrorismo |access-date=2022-07-26 |website=gob.pe |language=es-pe}}</ref><ref>{{Cite news |last=Gorriti |first=Gustavo |date=1992-06-05 |title=Tres muertos en un atentado en Lima contra la sede de un canal de televisión |language=es |work=El País |url=https://elpais.com/diario/1992/06/06/internacional/707781607_850215.html |access-date=2022-07-26 |issn=1134-6582}}</ref> Those examples subsequently came to be seen as symbols of the human rights violations committed during the last years of violence. With the capture of [[Abimael Guzmán]] (known as ''President Gonzalo'' to the Shining Path) in September 1992,<ref>{{Cite web |title=12 de setiembre: Captura de Abimael Guzmán, cabecilla del grupo terrorista Sendero Luminoso |url=https://www.gob.pe/institucion/ccffaa/noticias/521994-12-de-setiembre-captura-de-abimael-guzman-cabecilla-del-grupo-terrorista-sendero-luminoso |access-date=2022-07-26 |website=gob.pe |language=es-pe}}</ref><ref>{{Cite web |last=Fowks |first=Jacqueline |date=2021-09-11 |title=Muere Abimael Guzmán, líder de Sendero Luminoso condenado por participar en la muerte de 30.000 personas |url=https://elpais.com/internacional/2021-09-11/muere-abimael-guzman-lider-de-sendero-luminoso.html |access-date=2022-07-26 |website=El País |language=es}}</ref> the Shining Path received a severe blow which practically destroyed the organization. In December 1996, a group of insurgents belonging to the [[Túpac Amaru Revolutionary Movement|MRTA]] [[Japanese embassy hostage crisis|took over the Japanese embassy in Lima]], taking 72 people hostage.<ref>{{Cite news |last=PERÚ |first=NOTICIAS EL COMERCIO |date=2015-12-17 |title=Así Ocurrió: En 1996 terroristas toman la embajada del Japón {{!}} LIMA |url=https://elcomercio.pe/lima/ocurrio-1996-terroristas-toman-embajada-japon-314735-noticia/ |access-date=2022-07-31 |newspaper=El Comercio |language=es}}</ref><ref>{{Cite web |date=2019-07-16 |title=Secuestro en la Embajada de Japón en Perú en 1996 |url=https://skdesu.com/es/secuestro-en-la-embajada-japon-en-peru-1996/ |access-date=2022-07-31 |language=es-ES}}</ref><ref>{{Cite web |title=Lima. Hoy 17 de Diciembre de 1996 terroristas peruanos del MRTA toman la Embajada de Japón en Lima — Español |url=https://www.efemeridespedrobeltran.com/es/eventos/diciembre-1/lima.-hoy-17-de-diciembre-de-1996-terroristas-peruanos-del-mrta-toman-la-embajada-de-japon-en-lima |access-date=2022-07-31 |website=efemeridespedrobeltran.com |archive-date=2022-07-31 |archive-url=https://web.archive.org/web/20220731192530/https://www.efemeridespedrobeltran.com/es/eventos/diciembre-1/lima.-hoy-17-de-diciembre-de-1996-terroristas-peruanos-del-mrta-toman-la-embajada-de-japon-en-lima |url-status=dead }}</ref> Military commandos stormed the embassy compound in April 1997, which resulted in the death of all 15 hostage takers, one hostage, and 2 commandos.<ref>{{Cite web |date=2016-04-21 |title=126 días asalto a la embajada nipona en Lima - 40 Aniversario |url=https://aniversario.elpais.com/asalto-embajada-japon/ |access-date=2022-07-31 |website=Aniversario EL PAÍS |language=es-ES}}</ref> It later emerged, however, that Fujimori's security chief [[Vladimiro Montesinos]] may have ordered the killing of at least eight of the rebels after they surrendered. Fujimori's constitutionally questionable decision to seek a third term and subsequent tainted victory in June 2000 brought political and economic turmoil, including the [[Four Quarters March]] of July 26–28, which left several dead and injured, and destroyed the building of the [[Bank of the Nation (Peru)|''Banco de la Nación'']] (Bank of the Nation).<ref>{{Cite news |last=EFE |date=1999-12-28 |title=Fujimori se presenta para un tercer mandato, pese a las quejas de la oposición |language=es |work=El País |url=https://elpais.com/diario/1999/12/29/internacional/946422008_850215.html |access-date=2022-07-31 |issn=1134-6582}}</ref><ref>{{Cite web |title=Stein reconoce que hubo fraude en la reelección de Fujimori |url=https://www.elmundo.es/elmundo/2001/04/07/internacional/986663916.html |access-date=2022-07-31 |website=elmundo.es}}</ref> A bribery scandal that broke just weeks after he took office in July forced Fujimori to call new elections in which he would not run.<ref>{{Cite news |last=PERÚ |first=NOTICIAS EL COMERCIO |date=2019-09-16 |title=Alberto Fujimori: hace 19 años anunció nuevas elecciones tras vladivideo {{!}} POLITICA |url=https://elcomercio.pe/politica/alberto-fujimori-19-anos-convoca-nuevas-elecciones-desactivacion-noticia-ecpm-676523-noticia/ |access-date=2022-07-31 |newspaper=El Comercio |language=es}}</ref><ref>{{Cite news |last=Puertas |first=Laura |date=2000-09-18 |title=Fujimori se retira y convoca elecciones en Perú |language=es |work=El País |url=https://elpais.com/diario/2000/09/18/internacional/969228001_850215.html |access-date=2022-07-31 |issn=1134-6582}}</ref> The scandal involved Vladimiro Montesinos, who was shown in a video broadcast on TV bribing a politician to change sides. Montesinos subsequently emerged as the center of a vast web of illegal activities, including embezzlement, graft, drug trafficking, as well as human rights violations committed during the war against Sendero Luminoso.
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