20
Notes and References 1 Introduction 1. See R. Thorp and G. Bertram, Peru 1890-1977: Growth and Policy in an Open Economy (London: Macmillan, 1978,) on which many of the following views on Peru's economic development are based. 2. This was the case during the guano boom and the early twentieth century boom in mineral exports. An interesting exception to the rule was the 1890s when Peru's currency was tied to silver and the international market for silver collapsed. In these circumstances, despite buoyant world markets for other export commodities, Peru lacked the foreign exchange to import. Domestic industries blossomed as a result. 3. E. V. K. FitzGerald, The Political Economy of Peru 1956-78: Economic Development and the Restructuring of Capital (Cambridge: Cambridge University Press, 1979). 4. See the Financial Times, for instance, 30 August 1989. This quotes Inter- American Development Bank figures which show Lima to have a higher percentage of its workforce in the informal sector than any other major city in Latin America. 5. Joel Jurado, Protagonismo de Clases Populares: Limites y Potencialidades en Ia Crisis, (Lima, IDS, January 1989). 6. Oscar Altimir, La Dimension de Ia Pobreza en America Latina (Santiago: ECLA, 1978). 7. Adolfo Figueroa, 'Integracion de las Politicas de Corto y Largo Plazo', in Economia, no. 23, June 1989. 8. Central Bank (BCRP), Mapa de Ia Extrema Pobreza (Lima, 1982). 9. Jose Matos Mar, Desborde Popular y Crisis del Estado. El Nuevo Rostro del Peru en Ia Decada de 1980 (Lima, IEP, 1984). 10. Carlos Franco, 'Nacion, Estado y Clases: Debate en los 80' in Socialismo y Participaci6n no. 29, March 1985. 11. Imelda Vega Centeno, 'Ser Joven y Mestizo: Crisis Social y Crisis Cultural en el Peru', Margenes year II. no. 3. 12. On the early history of APRA, see Steve Stein, Populism in Peru: The Emergence of the Masses and the Politics of Social Control, (Madison, 1980). Also Peter Klaren, Modernization, Dislocation, and Aprismo (Austin: University of Texas, 1973). 13. See also Julio Cotler, Los Partidos Politicos y Ia Democracia en el Peru (Buenos Aires: CLACSO, 1988). 14. The exception to this rule was the government of Bustamante y Rivero in the immediate post-war period (1945-8) in which Apristas participated in the cabinet, but in which the party's inflexibility (especially Haya's) was a major factor in that government's final collapse. 217

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Notes and References

1 Introduction

1. See R. Thorp and G. Bertram, Peru 1890-1977: Growth and Policy in an Open Economy (London: Macmillan, 1978,) on which many of the following views on Peru's economic development are based.

2. This was the case during the guano boom and the early twentieth century boom in mineral exports. An interesting exception to the rule was the 1890s when Peru's currency was tied to silver and the international market for silver collapsed. In these circumstances, despite buoyant world markets for other export commodities, Peru lacked the foreign exchange to import. Domestic industries blossomed as a result.

3. E. V. K. FitzGerald, The Political Economy of Peru 1956-78: Economic Development and the Restructuring of Capital (Cambridge: Cambridge University Press, 1979).

4. See the Financial Times, for instance, 30 August 1989. This quotes Inter­American Development Bank figures which show Lima to have a higher percentage of its workforce in the informal sector than any other major city in Latin America.

5. Joel Jurado, Protagonismo de Clases Populares: Limites y Potencialidades en Ia Crisis, (Lima, IDS, January 1989).

6. Oscar Altimir, La Dimension de Ia Pobreza en America Latina (Santiago: ECLA, 1978).

7. Adolfo Figueroa, 'Integracion de las Politicas de Corto y Largo Plazo', in Economia, no. 23, June 1989.

8. Central Bank (BCRP), Mapa de Ia Extrema Pobreza (Lima, 1982). 9. Jose Matos Mar, Desborde Popular y Crisis del Estado. El Nuevo Rostro

del Peru en Ia Decada de 1980 (Lima, IEP, 1984). 10. Carlos Franco, 'Nacion, Estado y Clases: Debate en los 80' in Socialismo

y Participaci6n no. 29, March 1985. 11. Imelda Vega Centeno, 'Ser Joven y Mestizo: Crisis Social y Crisis

Cultural en el Peru', Margenes year II. no. 3. 12. On the early history of APRA, see Steve Stein, Populism in Peru: The

Emergence of the Masses and the Politics of Social Control, (Madison, 1980). Also Peter Klaren, Modernization, Dislocation, and Aprismo (Austin: University of Texas, 1973).

13. See also Julio Cotler, Los Partidos Politicos y Ia Democracia en el Peru (Buenos Aires: CLACSO, 1988).

14. The exception to this rule was the government of Bustamante y Rivero in the immediate post-war period (1945-8) in which Apristas participated in the cabinet, but in which the party's inflexibility (especially Haya's) was a major factor in that government's final collapse.

217

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218 Notes and References

15. Imelda Vega-Centeno, Aprisimo Popular: Cultura, Religion y Politica (Lima: Cisepa- PUCjTarea, 1991).

16. See John Crabtree, 'From Belaunde to Garcia', Bulletin of Latin American Research, vol.4, no.2, 1985.

2 Economic Policy: Playing by New Rules

l. For the social effects of Belaunde's economic policies see Leone! 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 Garcia (1985-87).

2. For a comparison of heterodox measures in Argentina, Brazil and Peru see John Crabtree, 'Let's Do It Our Way', Third World Affairs, July 1987.

3. Daniel Carbonetto (ed.), El Peru Heterodoxo (Lima: INP, 1986). 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).

5. For Garcia's position on this and other issues, see Alan Garcia, A La Inmensa Mayoria: Discursos, 1985-8 (2 vols) (Lima, 1987).

6. The Peru Report, May 1987. 7. Alan Garcia, A La Inmensa Mayoria. 8. Instituto Nacional de Planificaci6n (INP), 'La Distribuci6n del Ingreso

en el Peru' (mimeo), 1986. 9. Adolfo Figueroa, 'Integraci6n de las Politicas de Corto y Largo Plazo',

Economia no. 23, June 1989. 10. Centro de Estudios para el Desarrollo y Ia Participaci6n (CEDEP), Lima

/riformal, Lima, 1988. 11. This is one of the tentative conclusions of the Labour Ministry's 1986

Household Survey, Encuesta de Hogares no. 18. 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.

13. The Andean Report, January 1987: from 480 tractors to 1500. From 173,000 tonnes to 376,000 of fertiliser according to INE; Compendia Estadistico 1987.

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).

15. All three preoccupations, for instance, emerged from answers to a questionnaire to party leaders in the book Decidamos Nuestro Futuro (1985), edited by the Universidad del Pacifico and the Friedrich Ebert Foundation, Lima 1988.

16. Outlined in Margarita Trillo and Jorge Vega, 'Gasto Publico, Tributa­ci6n, Deficit Fiscal e Inflaci6n en el Peru (1970-88)', in Economia, no. 23, June, 1989.

17. Jorge Vega, 'EI Sistema Tributario Peruano', Lima, 1988 (mimeo) on which much of this section is based.

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Notes and References 219

18. See Alberto Giesecke (ed.), Burocracia, Democratizaci6n y Sociedad: Lima: Fomciencias, Concytec, Lima, 1989, for an account of the problems facing the Peruvian public administration at various levels.

19. Narda Henriquez, Decentralizaci6n y Poder (Lima: Universidad Catolica, 1987).

20. Under the regionalisation proposals, they were eventually placed under control from elected regional assemblies.

21. Lewis Taylor, 'Agrarian Unrest and Political Conflict in Puno 1985-87', Bulletin of Latin American Research, vol.6 no. 2, 1987.

22. Carol Graham, 'APRA 1968-1988: From Evolution to Government- the Elusive Search for Political Integration in Peru', D.Phil Thesis, Oxford, 1989.

3 APRA's Political Triumph

l. For voting patterns see the various works of Fernando Tuesta, especially Peru Politica en C(fras (Lima: Friedrich Ebert Foundation, 1987). The figures quoted here (and in Tuesta) are percentages of valid votes. They are not percentages of the total vote including null and void votes. As of 1985 the system used in presidential elections was that to win outright a candidate had to win 50 per cent plus one of the total vote including null and void votes. So, though Garcia got 53.1 per cent of the valid vote he still theoretically did not win an absolute majority in terms of the total vote. In the event, a second round was avoided because Alfonso Barrantes who was the runner-up declined to stand for a second round.

2. See Peri Paredes and Griselda Tello, Pobreza Urbana y Trabajo Femenino, Lima: ADEC, 1988. Also interviews by the author with Cooperacion Popular leaders in 1986 confirmed the overtly partisan purposes of P AlT.

3. Comedores populares expanded rapidly in the early 1980s, and provided community-run feeding facilities to families in the neighbourhood. From 1984 onwards the municipality of Lima organised a mass programme to provide milk to school children, the Vasa de Leche Programme.

4. Tuesta, Peru Politica en Cifras. 5. The best and most detailed account of what happened and who was

responsible is the Senate Commission's report researched and written by senator Rolando Ames, 'lnforme a/ Congreso sabre los Sucesos de los Penates' (Lima: OCISA, 1988). The massacre caused a particularly bad impression among European social democrats, though some Latin American leaders, notably Carlos Andres Perez of Venezuela, sought to back Garcia up.

6. The Andean Report, January 1986. 7. The Andean Report. April 1986. 8. Tuesta, Peru Politica en Cifras. 9. Survey conducted by the author in February 1987.

10. See Fernando Rospigliosi, 'Peru: Entre el Acuerdo y Ia Libanizacion', Pensamiento lberamericano, no.14, July-December 1988. Rospigliosi's interpretation is that the entry of the parties of the left into formal politics in the 1977-80 period aided the democratic transition. This point of view has been challenged by Luis Pasara in an unpublished article,

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220 Notes and References

'Peru: La Izquierda Legal en Ia Precariedad Democnitica'. Pasara draws attention to the reiterated call by important parties within Izquierda Unida to armed struggle. On balance it seems safer to base a judgement on what the left-wing parties did rather than what they said.

II. The Peru Report, June 1987.

4 Sendero Luminso and the Guerrilla Challenge

I. A separate group, Puka Llajta had an organised presence in Junin and Puno, and the MIR Cuarta Etapa in the highlands of Cajamarca and La Libertad. By 1980 Sendero had absorbed Vanguardia Revolucionaria­Proletario-Comunista (VR-PC) with its foothold in Andahuaylas in Apurimac.

2. In January 1983, the role of the military was given major publicity when eight journalists were killed in mysterious circumstances at the village of Uchuruccay in Ayacucho. The government was obliged to appoint an investigating commission, headed by novelist Mario Vargas Llosa, which blamed local peasants for the killings. These findings failed to dispel a widespread belief, subsequently partly substantiated, that military-orga­nised peasant patrols were to blame.

3. Central Bank (BCRP), Mapa de la Extrema Pobreza (Lima: 1982). 4. For the eatly history of Sendero Luminoso, see Carlos I. Degregori,

Ayacucho 1969-79 - El Surgimiento de Sendero Luminoso (Lima: IEP 1990).

5. See Alan Angell, 'Classroom Maoists: The Politics of the Peruvian Schoolteachers under Military Government', Bulletin of Latin American Research, vo!. 2 no. l. Peru is exceptional in Latin America for the strength of Maoism. When the PCP split in 1964 just over half the party's militants associated themselves with the Maoist fraction, and nearly all those involved in peasant work.

6. In 1990 the security forces discovered a house in Lima in which apparently Guzman had been living until fairly recently.

7. Philip Mauceri, Los Militares en el Peru: Su Politica en el Contexto de la Insurgencia y Democratizacion ( 1980-9) (Lima: IEP, 1989).

8. For instance, Actualidad Militar (Mar-June 1983), cited in Mauceri, Los Militares en el Peru.

9. Raul Gonzalez, 'MRTA- La Historia Desconocida', Que Hacer, no. 51, March-April 1988.

10. Mauceri, Los Militares en el Peru. 11. Within the military, the Centro de Altos Estudios Militares (CAEM)

exercised an important role in the elaboration of a developmental approach. See, for instance, CAEM, 'Proyecto de Gobierno en Defensa Nacional', August 1986.

12. The Peru Report, April 1987. 13. See Rolando Ames, lnforme a! Congreso Sobre los Sucesos de los Penates. 14. Garcia took the coup threat very seriously, ordering artillery to shoot

down any further plane which should fly low over the palace. For a graphic account see G. Thorndike, La Revolucion Imposible (Lima: EMISA, 1988).

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Notes and References 221

15. Lopez A1bujar was not sworn in until October 1987. 16. The Peru Report, January 1987. 17. See Lewis Taylor, 'Agrarian Unrest and Political Conflict in Puno

(1985-87)', Bulletin of Latin American Research, vol. 6, no. 2, 1987. 18. Que Hacer no. Puno - El Corredor Senderista, Que Racer no. 39,

February-March 1986. 19. Raul Gonzalez, 'Los Mineros de Pasco - El Talon de Aquiles de

Sendero', Que Racer no. 40, April-May 1986. 20. Raul Gonzitlez, 'Coca y Subversion en el Huallaga', Que Racer, no. 48,

September-October 1987.

5 The Economy from Boom to Bust and Beyond

l. Guillermo Wiese, head of Peru's second largest privately owned bank, the Banco Wiese, heard the news on the radio while holidaying at Paracas.

2. The Peru Report, August 1987. 3. Alan Garcia, El Futuro Diferente. La Tarea Hist6rica del APRA.

Especially chapter VII (Lima: JALSA 1982). 4. The Peru Report, August 1987. 5. Banks in cocaine towns like Uchiza exchanged dollars for intis, flying the

dollars out of the jungle to Lima and coastal towns. 6. Quoted in The Peru Report, October 1987. 7. The Peru Report, August 1987. 8. The Andean Report, October 1987. 9. Peru: The Top 1500 ( 1988 edition), (Lima: Peru Reporting EIRL, 1988).

10. This was a particularly strong line of argument in the political propa­ganda of Mario Vargas Llosa's Movimiento Libertad, which was born as a response to the nationalisation move.

11. The Peru Report, February 1988. 12. The World Bank, Peru: Policies to Stop Hyperinflation and Initiate

Economic Recovery (2 vols) (Washington, 1988). 13. The Peru Report, April 1988. 14. For dollarisation and its bearing on hyperinflation in Peru, see Oscar

Dancourt and Ivory Yong, 'Sobre Ia Hiperinflacion Peruana', Economia no. 23, June 1989. Also on hyperinflation see Jurgen Schuldt, Hacia Ia Hiperinflaci6n en el Peru (Lima: Universidad del Pacifico, 1988).

15!' Caretas 1024, 19 September 1988. 16. Labour Ministry, Encuesta de Hogares, nos 19 and 20, February 1990. 17. Javier Abugattas, 'Un Programa Social Transitorio (1990--92)', in the

Central Bank's monthly review Moneda, vol 2, no. 20, February 1990. 18. AB Prisma/UPCH Working Group, The Probable Effects of the Present

Economic Crisis on the Status of Young Children in a Peri-urban Population, report presented to UNICEF, September 1989. The project was financed partly by USAID.

19. For instance, Provida, an NGO working in several poor districts, reports on the falling calorific content of food provided by comedores populares between 1987 and 1989 as the price of the food purchased rose faster than the purchasing power of beneficiaries. As the economic crisis worsened, comedores populares tended to become more important as a source of

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222 Notes and References

food in poor neighbourhoods as more people made use of them, while the quality of food provided tended to decline.

6 The Political Response to the Crisis

1. Jose Matos Mar, Desborde Popular y Crisis del Estado. El nuevo Rostra del Peru en Ia Decada de 1980 (Lima: IEP, 1984).

2. Carmen Rosa Balbi, 'La Recesi6n Silenciosa', in Que Hacer, no. 59, June-July 1989.

3. Victor Robles Sosa, 'La Batalla de los Trabajadores', Que Hacer, no. 56, December 1988-January 1989.

4. Jackeline Velazco, Movilizaciones Agrarias, 1985-89: Un Analisis Eco­n6mico', CISEPA, no.89 (Catholic University, July 1990).

5. See Raul Gonzalez, 'Los Olvidados', in Que Hacer, no. 47, June-July 1987.

6. An account of the various pressure groups which developed within APRA at this time is to be found in The Peru Report, June 1988, on which this is based.

7. Que Hacer, no. 47, June-July 1987. Cusco: APRA o Muerte. 8. The Peru Report, June 1988. 9. See, for instance, Caretas 1013, 4 July 1988.

10. 'Por una Alternativa Revolucionaria de Poder'; 9th Congress of the PCP, 27-31 May 1987, Political Theses.

11. Estatizar para Democratisar. La /U responde a Ia Derecha y a/ AP RA, lzquierda Unida, (Lima: 1987) The book includes speeches by Enrique Bernales, Jorge del Prado, Javier Diez Canseco, Carlos Malpica and Gustavo Mohme. The quote is from Javier Diez Canseco.

12. 'El Pueblo Construye su Futuro'. Asamblea Nacional Popular. Editora Humbolt, p. 16. This leaflet contains the main resolutions agreed by the ANP and was edited by the event's organisers. Since the agreements remained unpublished this is the only text available. It accurately captures the political mood of the ANP.

13. Unpublished survey conducted by the team from the magazine El Zorro de Abajo.

14. Mario Zolezzi, 'Parto en el Arena!', Que Hacer, no. 50, January­February 1988.

15. The Andean Report, March 1988, points to the CGTP's decision to accept application by the CCP and oil workers (FENATRAPP). By 1988 the CGTP accounted for around 95 per cent of the labour movement.

16. See Jose Maria Salcedo, 'IU: El Drama Recien Comienza?' Que Hacer, no. 57, February-March 1989.

17. Quoted in El Naciona/21 September 1987. 18. See, for instance, Rosemary Thorp, 'Los Caminos del Capitalismo en el

Peru', Paginas, 102, Aprill990. In fact Hernando deSoto parted political company with Vargas Llosa in 1988, acting at various points as consultant for the Garcia government.

19. For a critical description of the role of banks in the economic power groups, recently updated (1989), see Carlos Malpica, El Poder Econ6mico en el Peru (2 vols), (Lima: Mosca Azul, 1989).

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Notes and References 223

20. See The Peruvian Financial System at the Time of the Expropriation (Lima: Peru Reporting EIRL 1987).

21. The formula finally adopted for the 1989 municipal election was that Acci6n Popular would provide the candidate for Lima, and the PPC the candidate for Callao. For the presidential election Acci6n Popular provided a candidate for first vice-president, and the PPC for the second vice-president. An equal number of candidates were to stand from all three political forces in the elections for Congress.

22. See Que Hacer, no. 61, October-November 1989. Letter from the textile industrialist Gian Flavio Gerbolini in response to an earlier interview with one of Fredemo's ideologues, Jaime de Althaus, chief editorial writer on Expreso.

23. See Victor Robles, 'Los Jovenes de Fredemo' in Que Hacer, no. 60, August-September 1989. This also shows how Fredemo was able to build up a presence in the student movement.

24. For a thorough article on the television business in Peru, see The Peru Report, March 1989.

25. Peruvian electoral law prohibits the publication of opinion polls in the last week before an election, so the last minute rush of support towards Fujimori went largely undetected.

26. Caret as 1104, 16 April 1990. 27. APRA won more votes than any other party in the first round in

Amazonas, Ancash, Cajamarca, La Libertad, Lambayeque and Piura. 28. Fernando Villanin, 'El Fen6meno Fujimori o Crisis de las Ideas

Convencionales', Que Hacer, no. 64, May-June 1990. He quotes various estimates as to the size of the informal microempresariado.

29. Evidence from questionnaires on political attitudes among informal sector workers conducted by Eliana Chavez, Que Hacer, no. 64 May­June 1990.

30. Cambio-90 also came top in Ayacucho, Cuzco, Huancavelica, Junin, Pasco and Puno.

7 Spiral of Violence

1. For instance Fernando Rospigliosi, 'El Riesgo de Ia Libanizaci6n', La Republica, April 1989.

2. Comisi6n Especial del Senado sobre las Causas de Ia Violencia y Alternativas de Pacificaci6n en el Peru, Violencia y Pacificacion (Lima: DESCO and Comisi6n Andina de Juristas, February 1989.)

3. 'La Entrevista del Siglo: Presidente Gonzalo Rompe el Silencio', inter­view by Luis Arce Borja, El Diario, July 24 1988. Subsequent information suggested, however, that the interview took place in Lima. See Caretas 1112, 12 June 1990.

4. See, for instance, the minutes of the 4th Plenary in April1986 and the 4th National Conference in July 1986.

5. Intelligence officials in Lima in early 1987 thought that Sendero's move towards more urban work would make infiltration much easier. Inter­views with the author.

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224 Notes and References

6. Carmen Rosa Balbi, 'Senderos Minados', in Que Hacer, no. 61, October­November 1989.

7. Between 1986 and 1989 Sendero managed to use its presence in the sierra central to increase its influence in the southern part of Lima department (around Caiiete) as well as to the north of Lima (around Barranca and Huarmey).

8. Nelson Manrique, 'La Decada de Ia Violencia', Margenes, no. 5-6, December 1989.

9. 'Strategic equilibrium' for Sendero was the phase between 'strategic defence' and the 'strategic offensive' in which the armed forces and the Popular Guerrilla Army (EGP) confronted one another on more or less even terms.

10. The Peru Report, April 1987. 11. Carlos Ivan Degregori, 'Sendas Peligrosas: La Guerra del Comandante

Huayhuaco', Que Hacer no. 58, April-May 1989. 12. See, for instance, Amnesty International Peru Briefing, Caught Between

Two Fires, November 1989; US State Department Human Rights Reports; Americas Watch Reports.

13. Quoted in Ammesty International, ibid. 14. Philip Mauceri, Los Militares en el Peru. 15. There were frequent rumours of a pending coup in the months following

the September paquetazo. These became so intense by January 1989 that the US ambassador in Lima felt obliged to make a public statement expressing his government's opposition to any disruption of constitu­tional rule in Peru.

16. The Peru Report, July 1988. 17. General Lopez Albujar, Defence Minister (1987-9). Interviewed in Que

Hacer, no. 57, February-March 1989. 18. Rodrigo Franco was a prominent Aprista who had been assassinated by

Sendero in the suburbs of Lima earlier in 1988. 19. This comes over strongly in Sendero's dealings with communities in the

highlands of Junin. See Nelson Manrique, 'La Decada de Ia Violencia', 20. Raul Gonzalez, 'Sendero: Duro Desgaste y Crisis Estrategica', in Que

Hacer, no. 64, May-June 1990. 21. Caretas 1109, 21 May 1990. 22. While for Gonzalez it was 'clear that problems in Sendero exist, basically

between the party leadership and the organismos generados, for Gustavo Gorriti, author of a book on Sendero, the evidence for the division was 'pretty weak' (interview in La Republica Dominica/, 13 May 1990. Carlos Ivan Degregori argued that despite possible 'internal contradictions' it was 'premature' to say that this constituted a 'division' (interview La Republica Dominica/, 20 May 1990.

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Index

Abugattas, Javier 145-6 Acci6n Popular (AP) 17-18, 70, 75,

82, 83--4, 87-8, 171-2, 174-6 see also elections; Fredemo

Acci6n Popular Socialista (APS) 82 Accomarca 80--1 , 109, 204 Acuerdo Socialista see Convergencia

Socialista agrarian reform 10, 53, 66, 98, 102,

113, 192 Agricultural Reactivation and Food

Security Fund 54-5, 57 agriculture 3--4, 6, 8, 21, 34, 47,

53-8, 77, 115, 142-5, 192-3, 195-6, 198, 212

Alfonsin, Raul 33 Alto Huallaga 30, 113, 115-18,

195-201, 205, 207-8, 213 Alva Castro, Luis 39, 92, 122, 125,

158-61, 177-81 Alva Orlandini, Javier 83 Andean Pact 5 APRA (Alianza Popular

Revoucionaria Americana) eli en telism 66 in Congress 73, 124-5, 161, 163 discontent in 92-3, 160--4 establishment of 13 ideology of 17-18, 65, 78 and the left 73-82, 212 loyalty within 71, 164 and private sector 84-5, 171, 212 organisation of 70 radicalisation in 163--4 rise to power 28, 31, 39, 69-73 and shanty towns 75-6 support base 46, 160, 170 and unions 74-5, 78 youth in 163--4 see also elections

APRA Rebelde 72, 107, 163 Apurimac 97 Arciniega, Alberto 207

231

Asamblea Nacional Popular (ANP) 167-8

Asociaci6n de Exportadores (Adex) 84

Austral Plan 31, 33 Ayacucho 16, 56, 77, 80, 90, 94,

96--9, 101-6, 194, 201-2, 204-5, 207

Emergency Zone 77, 79, 96, 104, 110, 202-3

University of 98, 101

balance of payments crisis of 1975-7 25 problems in 1981-2 26 in 1986--7 37-8, 45, 57, 121 crisis of 1988-90 130, 133, 135-6,

148, 150, 151 see also foreign exchange

Banco Agrario 54, 144 Banco de Credito 84, 123-5 Banco Mercantil 173 Banco Wiese 124-5 Bandera Roja 99 banks 122-5, 173, 197

see also nationalisation Bankworker's Union (FEB) 155 Barrantes, Alfonso 70, 80--2, 88-91,

165-9 Bedoya, Luis 83--4 Belaunde, Fernando

and Acci6n Popular 18, 75, 83 and administration 58, 60, 67 and coca 115, 117 debt policy 40, 43 economic policy 25-31, 86 first government 19 and Fredemo 174-5 political style 71 and Sendero Luminoso 96,

104-6, 109 Belco Petroleum 80--1, 87 Belmont, Ricardo 181

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232 Index

Bernales, Enrique 79-80, 165, 185-7

Billinghurst, Guillermo 12 Breiia, Rolando 80 bufalos 71

Cambio-90 178-9, 181-3, 207 Cantoral, Saul 206 capital flight 29, 44, 123, 128 Carbonetto, Daniel 122, 124, 126,

129, 131, 135, 148 Cartagena Agreement 40 Castro, Fidel 40 Cavallerino, Luis Abraham 111 Cayara 204 Central Bank (BCRP) 64, 125, 131,

136 Centromin 192-3, 195 Cholificaci6n 1 D--11 Church 73, 76, 102, 114, 182 Chuschi 94, 100 Citibank 43, 130 clientelism 64 coca 3, 30, 37, 48, 56, 96-7, 113,

115-18, 145, 187, 195-201 cocadollars 123, 197 coca eradication 115, 117,

199-201, 207, 213 cocaine see coca Comando Rodrigo Franco

(CRF) 205-6 commercial banks (foreign) 41, 43,

45, 130 Communist Party (PCP) 13, 74, 78,

80, 82, 90, 98, 165-6, 168, 170, 190

Confederaci6n Campesina del Peru (CCP) 77, 169, 192

Confederaci6n de Trabajadores del Peru (CTP) 74, 78

Confederaci6n General de Trabajadores del Peru (CGTP) 74, 78, 152-3, 155, 157, 166, 168, 190

Confederaci6n Intersectorial de las Empresas Privadas (Confiep) 84--5, 87, 126, 173

Confederaci6n Nacional Agraria (CNA) 77

Conferencia Anual de Ejecutivos (CADE) 84--5, 122-3, 126

Congress 20, 69, 73, 80, 83, 92, 125, 160

Constitution ( 1979) 16, 20, 67, 92, 160

construction industry 34, 49, 51, 86, 148

Convergencia Socialista 165-6, 168, 170, 181

Cooperaci6n Popular 75 Corah (Proyecto de Reducci6n del

Cultivo de Ia Coca en el Alto Huallaga) 115, 118

corruption 20, 58, 62, 64, 109, 185-7

counter-insurgency 79, 90, 94, 103-6, 108-12, 184--5, 187, 201-7, 209, 212

credit agricultural 54, 76, 131, 143--4 'financial circuits' 122-3 in informal sector 53, 76

crime 184, 186-7 Cruchaga, Miguel 174 Cruzado, Julio 74 Cruzado Plan 31, 34 Cuzco 69, 77, 88-9, 115, 162

Dammert, Manuel 170 Daiiino, Roberto 174 death squads 184, 205-6 debt 6, 26, 31, 33, 37, 39--45, 63, 80,

129-30, 214--15 Defence Ministry 111-12 Del Castillo, Jorge 88, 89 Delgado Parker, Hector 177 Del Prado, Jorge 80, 190 De Soto, Hernando 58, 172-3, 175,

182 devaluation 31-2, 37-8, 121,

129-35, 138, 149 see also exchange rate

Diez Canseco, Javier 80, 169 Direct Assistance Programme

(PAD) 76

ECASA (Empresa Comercializadora de Arroz S.A.) 129, 144, 156-7

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Index 233

economic growth 11, 27, 29, 33-6, 38, 60, 127, 136, 148-50, 214

see also 'heterodoxy' economic liberalisation 25-6, 30 economic paquetes 130---41

social effects of 138-47 political response to 152-7

education 7, 13 El Diario 188, 190 elections 70

1978 Constituent Assembly 77 1980 presidential 78 1983 municipal 28, 70, 78 1985 presidential 69, 73, 79, 82-4 1986 municipal 75-7, 84, 87-90,

170 1989 municipal 165, 170, 174,

181, 206 1990 presidential 92, 127, 134,

147, 150, 165, 170, 174--5, 178-83, 207

Electroperu 129 · El Fronton see prisons El Otro Sendero 58, 172-3 employment 7, 48-50, 75, 141-3

see also unemployment; informal sector; formal sector

Empresa Nacional de Ia Coca (Enaco) 115

ENCI (Empresa Nacional de Comercializacion de

. Insumos) 57, 129, 144, 156 European Community 43 exchange rate 37, 57, 60, 86, 121,

123, 128, 131-6, 138-9, 149, 197 export-led growth 3-4, 19, 25 exports 26, 28-9, 35-7, 127, 136,

197-8 Expreso 174, 177, 201

Ferrari, Cesar 122 fiscal deficit 27-8, 33, 35, 61, 129,

132, 134-6, 149 fishing industry 3, 5, 27, 34 Flores Torres, Jorge 110--11 foreign reserves 32, 39, 122, 128,

132, 134, 136, 148, 150--1

formal sector 48-51, 141 see also informal sector;

employment Franco, Carlos 10, 122 Fredemo (Frente

Democnitico) 126, 169, 172-80, 183

Frentes de Defensa 67-8, 156-7, 167 Fujimori, Alberto 178-83, 215

Garcia, Alan and administration 59, 62-4 agricultural policy 53-8 bank nationalisation 121-7, 215 and death squads 206 debt policy 39-45, 214--15 income distribution 45-58 intervention in paquetes 131. 138 and the left 78-82 and the military 108-12, 202-5 and non-committed voters 70--1 and peasant communities 55, 66,

212-13 personalism 62, 212-4 popularity 72, 88, 92, 110,

112-13, 121, 134, 157-60, 210--14

position in APRA 71. 91-2, 157-64

and private sector 36, 84--7, 122-7

rise to power 69-72, 210 takes office 2, 12, 31, 39, 79

gremios 68, 84--5, 126, 173 guano 3 guerrilla warfare 97-8, 102, 118

see also counter-insurgency; Sendero Luminoso

Guzman, Abimael 90, 100, 113, 188, 190, 208

Haya de Ia Torre, Agustin 169 Haya de la Torre, Victor Raul 13,

17-18, 71, 78, 158, 161-4, 210 'heterodoxy' 31-9, 59-63, 73, 129,

149, 211, 215 Huaman, Adrian 105, 110 Huancavelica 97 Huancayo 77

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234 Index

'Huayhauco', Comandante 201 human rights, violations of 80-2,

96, 104--6, 109-11, 167, 185, 202-6

Idesi (Instituto de Desarrollo del Sector Informal) 51, 53, 76

Iguiiiiz, Javier 33 illiteracy 10, 97 import substitution 5 imports 26, 28-9, 32, 35-6, 39, 53,

57, 127, 133, 136, 145, 148, 151 income see wages income distribution 2, 5, 8-9, 21,

45-58 see also poverty

industry see manufacturing industry

infant mortality 10, 97 see also malnutrition

inflation 27, 29, 31-5, 60, 127, 129, 131-2, 134-9, 143-4, 148-50, 205

informal sector 7-9, 30, 48-53, 59, 61, 74, 76, 141-2, 172, 180-2

Iristituto Libertad y Democracia (ILD) 172

Instituto Nacional de Planificacion de Empresas (IP AE) 85

Inter-American Development Bank (IDB) 44, 129-30

interest rates 28, 31-2, 135, 138, 149

International Monetary Fund (IMF) 6, 25-8, 30-l, 40-l, 44, 80, 129-30, 136

investment 29, 35-6, 38, 61, 85, 87, 122

lzquierda Unida and APRA 78-82, 87-9 in Congress 79-80, 84, 124, 166 debt policy 39 economic policy 31, 33 first congress of 164-6 membership of 165 organisation of 82 origins of 77, 107-8 radicalisation of 89-91, 166-8 and Sendero Luminoso 190, 192

social base of 46, 76, 114, 165, 190

splits in 79, 89-90, 164-70, 181 see also elections

judicial system 186-7 Julia, Julian 105 Junin 191-3

La Libertad 69 Lambayeque 69 Larco Cox, Guillermo 122, 129 Leguia, Augusto 12-13 Leon Romulo 92, 160 Lima 6, 10, 19, 52, 66, 69, 70, 75,

83, 88, 146, 176, 191-2 local government 19-20, 65, 75-6,

87, 90-1, 102, 114, 162, 181, 194 Lopez AlbUjar, Enrique 112 Lurigancho see prisons

malnutrition 145-7 Mantilla, Agustin 206 manufacturing industry 3, 32, 34,

49-51, 86, 141, 148 Maoism 99, 100-1, 106 Mariategui, Jose Carlos 13, 78, 101 Marxist left 16, 72-5, 78, 90, 107-8

see also Izquierda Unida mass media 7, 13, 176-7, 181 Matos Mar, Jose 10, 152 Melgar, Carlos Enrique 204 microregiones 65, 76, 110 migration 7, 10, 56, 90, 196 military 20, 80, 90, 96, 102-6,

108-12, 118, 171, 184--6, 193, 195-6, 199, 204-8

Mineworkers' Federation (FNTMMSP) 154, 206

mining 2, 4, 34, 86, 136, 154, 193 monetary policy 35, 134, 149 Morales Bermudez, Francisco 2, 6,

16, 75, 115 Morales Bermudez, Remigio 54,

122, 131 Morote, Osman 186, 191, 194, 205 Movimiento de Izquierda

Revolucionaria (MIR) 107, 108, 163

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Movimiento Revolucionaria Tupac Amaru (MRTA) 90, 107-8, 167, 184, 189, 195, 198-9, 203

narcotraficantes 115, 117-18, 184, 196--200, 207

nationalisation bank nationalisation 63, 87, 93,

121-7, 166, 170--1, 173, 204, 212, 215

of Belco 80--1 under Velasco 5

Noel y Moral, Clemente 104--5 Nores, Pilar 76

Occidental Petroleum 81 occupational structure 9 oil industry 3--4, 80--1

P AIT (Programa de Apoyo de Ingreso Temporal) 51, 52-3, 66, 75--6

Panamericana Television 177 Pardo Mesones, Francisco 173 paros armados 190--1, 193, 206 Partido Comunista Peruano

(PCP) see Communist Party Partido Comunista Revolucionario

(PCR) 82, 170 Partido Popular Cristiano

(PPC) 39, 70, 83--4, 87-8, 171-2, 174--6

see also elections; Fredemo Partido Socialista Revolucionario

(PSR) 79, 82, 107, 165, 168 Partido Unificado Mariateguista

(PUM) 79-82, 89, 108, 114, 165-9, 192

Pasco 113-15, 190--1 Patria Roja 99, 167, 169 peasant militias 105, 169, 201-2 peasants

and economic growth 55--6 Garcia's appeal to 69-77, 89,

202, 212 and the left 114, 192 population 8-9 Sendero Luminoso and 102-3,

106, 113-15, 192-3, 208

Index 235

Pedraglio, Santiago 169 Petroperu 20, 87 pharmaceutical industry 86, 139 Piura 77 Plan Sierra 56--7, 212 police 91, 106, 109, 114--15, 118,

195--6, 199-202, 205-7 political mobilisation, periods

of 13, 16, 74 political parties 12, 17-18 Popular Guerrilla Army

(EGP) 101, 208 poverty 8-10, 29, 47-8, 50--2, 59,

74, 76, 145-7, 172, 212 Praeli, Enrico 110 Priali:, Ramiro 72 price freeze 31, 60, 86, 121, 131,

134--5 Prisma 146--7 prisons 81-2, 100, 110--11 private sector

Belaunde and 25 capital flight 44 Garcia and 84--7, 173, 212, 215 and investment 21, 36, 38, 61,

84--5 and microempresarios 182 and the right 171-2 subsidies to 175 wages in 51

privatisation 30 PROEM (Programa de Empleo de

Emergencia) 50--2, 141, 153 public administration 19, 58--68 Pucallpa 77 pueblos jovenes 66, 69, 73-7, 88,

146--7, 176, 182, 195 Puno 69, 77, 88, 102, 113-14,

206

Raffo, Juan Francisco 124 regionalisation 67-8, 213, 215 rimanacuys 55, 66, 76--7, 213 Rivas Davila, Carlos 138 Robles, Cesar 134 Roca, Carlos 161 Rodriguez Pastor, Carlos 27-8 rural protest 156--7

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236 Index

Saberbein, Gustavo 122, 126, 130-1, 134

SAIS Cahuide 192 Salinas, Abel 134, 136, 138-9 Sanchez, Luis Alberto 72 San Martin 108, 113 Sendero Luminoso 59, 65, 76, 78-9,

80-2, 90-1, 110, 155, 169, 188-95, 201-9

in Alto Huallaga 195, 197-201 growth of 101-2, 112-18, 184 ideology of 99-101 military capacity 106, 118, 197,

206-7 organisation of 100-1, 106, 163,

188 origins of 97-9 and peasantry 102-3, 155, 192-5,

208 and unions 153, 190-1, 193, 195,

208 shanty towns see pueblos jovenes Sinamos (Sistema Nacional de

Movilizaci6n Social) 13, 18, 75, 102

Socialist International 82, 111 Sociedad Nacional de Industrias 84 Soviet Union 43 strikes 91, 136, 148, 153-7, 166, 190

see also paros armados

Tantalean, Javier 77, 123, 130-1 Tapia, Carlos 169 tax evasion 61-2 taxation 28-30, 35, 38, 59-62, 68,

129, 131, 135, 213 Tocache 118, 198-9 Torres Vallejo, Jorge 92 Townsend, Andres 71

trade balance 28, 36, 127, 132-3, 150

trade unions 8, 13, 16, 68, 73-5, 91, 115, 153-5, 157, 167, 190, 193--4, 208

training 52, 63--4 Trujillo 68, 160 'Twelve Apostles' 84--5, 87, 122-3,

212

Uchiza 199, 200-1, 207 Uchuruccay 103--4, 171 Ulloa, Manuel 25-7, 30, 83, h74 unemployment 29, 49, 75, 91, 150,

153 Unidad de lzquierda Revolucionaria

(UNIR) 80, 82, 89, 165-6, 168 Unidad Democratica Popular

(UDP) 167 United States 40-1,43, 115,200,

207

Vargas Llosa, Mario 167, 169-81, 183, 215

Vasquez Bazan, Cesar 147-8 Velasco, Juan 1, 5-6, 13, 16, 18-19,

58, 78, 91, 98-9 Villa El Salvador 66, 89, 167 Villanueva, Armando 71-2 112

204 ' , Villaran, Fernando 182 violence 156, 184--8

wages 28, 31, 34, 38, 48-9, 52, 63, 91, 132-5, 138--41, 149-50, 154--5

World Bank 25-6, 40-1, 44, 129-30, 135-8