Fujimori Implements Economic Reforms by Ending Price Controls and State Ownership in Peru

In the early 1990s, under the leadership of Alberto Fujimori, Peru underwent a significant transformation towards a liberalized economy. Fujimori's government implemented a series of sweeping reforms aimed at dismantling the previous economic structure characterized by price controls, protectionism, and heavy state ownership. By ending these restrictions, the government opened the doors to foreign direct investment, which was crucial for revitalizing the economy. The liberalization measures not only fostered a more market-oriented environment but also encouraged competition and innovation within various sectors. As a result, the economic landscape of Peru began to shift dramatically, with services accounting for 53% of the gross domestic product (GDP) by 2010, followed by manufacturing at 22.3%. These changes laid the groundwork for sustained economic growth and development, positioning Peru as a more attractive destination for investors and businesses alike. The reforms initiated during Fujimori's administration marked a pivotal moment in Peru's economic history, steering the nation towards a more open and dynamic economic framework.