Editing Economy of Peru (section)

=== 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>