Economic Policy: Playing by New Rules
It was with high hopes and a sense of mission that members of President Belaúnde’s economic team took up their jobs in 1980. Many of them had returned to Peru, like Belaúnde himself, from the United States. There, typically, they had worked in universities, corporations or in the IMF, World Bank or other multilateral financial agencies. Their aims on returning to Peru were to liberalise the economy. They sought to promote the private sector and to reduce the economic role of the state which had grown so during the military government; to increase the degree of competitiveness within the domestic economy and in foreign trade; to promote foreign investment as a motor of longer-term growth; and to reorient investment priorities generally towards export-led growth rather than import-substitutive industrialisation. They thus sought to modify in a very fundamental way the nationalistic and statist development strategy adopted by the military government of General Velasco.
KeywordsPublic Sector Informal Sector Formal Sector Foreign Reserve Military Government
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Notes and References
- 1.For the social effects of Belaúnde’s economic policies see Leonel Figueroa, ‘Economic Adjustment and Development in Peru: Towards an Alternative Policy’, in Cornia, Francis and Jolly (eds), Adjustment with a Human Face, vol II (Oxford: Oxford University Press, 1987). Figueroa was president of the central bank under García (1985–87).Google Scholar
- 3.Daniel Carbonetto (ed.), El Peru Heterodoxo (Lima: INP, 1986).Google Scholar
- 4.This argument is mentioned, for instance in, Rosemary Thorp, Peruvian Adjustment Policies, 1978–85: The Effects of a Prolonged Crisis’, in Thorp and Whitehead (eds), Latin American Debt and the Adjustment Crisis (London: Macmillan/St Antony’s, 1987).Google Scholar
- 5.For García’s position on this and other issues, see Alan García, A La Inmensa Mayoría: Discursos, 1985–8 (2 vols) (Lima, 1987).Google Scholar
- 10.Centro de Estudios para el Desarrollo y la Participación (CEDEP), Lima Informal, Lima, 1988.Google Scholar
- 12.COINCIDE ‘Como Usan las Comunidades del Cusco el Fondo de Apoyo al Desarrollo Comunal’ in El Problema Agrario en Debate Lima: SEPIA II, 1987.Google Scholar
- 14.Hernando de Soto, El Otro Sendero (Lima: Ed. El Barranco 1986); published in English as The Other Path: The Invisible Revolution in the Third World (London: Tauris, 1989).Google Scholar
- 18.See Alberto Giesecke (ed.), Burocracia, Denwcratización y Sociedad: Lima: Fomciencias, Concytec, Lima, 1989, for an account of the problems facing the Peruvian public administration at various levels.Google Scholar
- 19.Narda Henríquez, Decentralización y Poder (Lima: Universidad Católica, 1987).Google Scholar
- 22.Carol Graham, ‘APRA 1968–1988: From Evolution to Government — the Elusive Search for Political Integration in Peru’, D.Phil Thesis, Oxford, 1989.Google Scholar