The Fujimori Years: The Remaking of Political and Economic Exclusion

Abstract

The last chapter ended with a state of total crisis in both the economy and polity at the end of the 1980s, with negative institutional consequences: overwhelming political fragmentation and anomie, and a sense of ungovernability as inflation and terrorism took off to terrifying heights. This chapter now explores the resolution of crisis. We analyse the institutional consequences both in the economy and the polity, and the results for structures of exclusion, above all for indigenous and cholo people. While in some ways state capacities are increased, there are new elements of exclusion and top-down characteristics to policy, and damage to incentives to organize and participate.