Peru's Shift to Neoliberal Economics Under Authoritarian Governance

In the 1990s, Peru underwent a significant transformation towards neoliberal economics, primarily driven by the implementation of Plan Verde under the authoritarian regime of Alberto Fujimori and his advisor Vladimiro Montesinos. This shift marked a departure from previous economic policies, embracing free-market principles aimed at stabilizing the economy and promoting growth. Fujimorism, characterized by a blend of authoritarian governance and neoliberal economic policies, sought to reduce state intervention in the economy, privatize state-owned enterprises, and attract foreign investment. The government's aggressive reforms included deregulation, tax cuts, and a focus on export-led growth, which were intended to combat hyperinflation and economic stagnation. While these measures did lead to some economic recovery and growth, they also resulted in increased inequality and social unrest. The legacy of Fujimorism continues to influence Peru's political landscape, as the balance between economic liberalization and social equity remains a contentious issue. The authoritarian methods employed during this period, including human rights violations and suppression of dissent, have left a complex and controversial imprint on Peru's governance that resonates to this day.