Introduction

General Juan Velasco Alvarado headed a military junta between 1968–75. A socialist, he implemented key socio-economic reforms before failing health ended his rule.

Early Life

Velasco was born in Piura, in North Peru, on 16 June 1910. He trained at the Chorrillos military academy at Lima. After a successful military career, Velasco achieved the rank of general. At this time there was a wave of military discontent. Economic reforms under President Fernando Belaúnde had failed causing growing disillusionment and Belaúnde’s pro-USA stance was unpopular. There was a major dispute over the La Brea and Pariña’s oilfields in the north of Peru. The people, and the military, were unhappy with the monopoly of the American company, the International Petroleum Co., and its influence over the surrounding regions. Velasco led a bloodless coup and established himself as the head of an all-military government.

Career Peak

Unlike other military dictatorships, Velasco’s government was reformist and populist. He set about implementing social and economic reforms aimed at improving the economy and reducing the disparity between the rich and Peru’s majority poor by raising levels of education and social security. He also implemented a nationalization programme of transport, electricity, oil, mining and communications. In extensive agrarian reforms, co-operatives were established on formerly private farms. Price controls were imposed and Velasco promoted workers involvement in decision making. To support the large indigenous population, many of whom represented Peru’s most poor, he made Quechua Peru’s official second language. But he also restricted the freedom of the press.

Velasco reversed Belaúnde’s policy of encouraging US influence. He took the disputed oil fields back under Peruvian control, leaving the American owners uncompensated. He banned American fishermen from Peruvian waters, sought a Latin American alliance against the USA and was unmoved when the USA suspended arms sales. Velasco strongly opposed American sanctions of Cuba.

Velasco’s first 5 years in power were judged but in 1973 his health failed and his power waned. He continued to run the government for a further 2 years before, amid strikes, he was deposed by his prime minister, General Francisco Morales Bermúndez. The latter continued the military dictatorship, but reversed all of Velasco’s reforms. Velasco died on 24 Dec. 1977 and his funeral procession through the streets of Lima was accompanied by a large anti-government protest.