Neoliberalism under Crossfire in Peru: Implementing the Washington Consensus

Abstract

In 1990, the political elite in Peru were deeply split along two contradictory ideological lines regarding the implementation of a free market economy. One the one hand, the traditional ruling political-economic elite and most of civil society were against free market reforms. Specifically, this coalition, which supported an economic protectionist model in which the state played a central role, was comprised of entrepreneurial associations, trade unions, political parties of the left, centre and even factions of the right, as well as social movement groups (student organizations and peasant or neighborhood associations). On the other hand, an emerging political elite linked to international financial institutions (IFIs) and transnational corporations (TNCs), were stark proponents of a free market-oriented liberalization of the economy.