Peruvian Experiment Reconsidered

Peruvian Experiment Reconsidered

Cynthia McClintock
Abraham F. Lowenthal
Copyright Date: 1983
Pages: 500
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  • Book Info
    Peruvian Experiment Reconsidered
    Book Description:

    Peru's self-proclaimed "revolution"-surprisingly extensive reforms initiated by the military government-has aroused great interest all over Latin America and the Third World. This book is the first systematic and comprehensive attempt to appraise Peru's current experiment in both national and regional perspective. It compares recent innovative approaches to Peru's problems with the methods used by earlier regimes, providing original and stimulating interpretations of contemporary Peru from the viewpoints of political science, sociology, history, economics, and education.

    Among the issues considered are the military regime's policies regarding income distribution, foreign investment, education, urbanization, worker-management relations, and land reform.

    Contributors:Abraham F. Lowenthal, Julio Cotler, Richard Webb, David Collier, Susan Bourque and Scott Palmer, Colin Harding, Robert Drysdale and Robert Myers, Shane Hunt, Peter T. Knight, Jane Jaquette.

    Originally published in 1976.

    ThePrinceton Legacy Libraryuses the latest print-on-demand technology to again make available previously out-of-print books from the distinguished backlist of Princeton University Press. These paperback editions preserve the original texts of these important books while presenting them in durable paperback editions. The goal of the Princeton Legacy Library is to vastly increase access to the rich scholarly heritage found in the thousands of books published by Princeton University Press since its founding in 1905.

    eISBN: 978-1-4008-7268-8
    Subjects: Business

Table of Contents

  1. Front Matter
    (pp. i-vi)
  2. Table of Contents
    (pp. vii-viii)
  3. List of Tables
    (pp. ix-x)
  4. Preface
    (pp. xi-xviii)
    Cynthia McClintock and Abraham F. Lowenthal
  5. Contributors
    (pp. xix-xxi)
  6. I. The Peruvian Experiment in Historical Perspective
    • 1 Democracy and National Integration in Peru
      (pp. 3-38)
      Julio Cotler

      From its very first days in 1968, Peru’s government of the armed forces persisted in asserting its “revolutionary” character. The political-military command declared, repeatedly, that its abundant legislation was intended to eradicate “the traditional structures” responsible for the overall backwardness of the country and for its subordination to imperial centers. These problems, which reinforced each other, underlay not only the divisions among the nation’s social classes but also the divisions within them. The political-military command believed that these tensions were constantly growing sharper, and threatening the existence of the society and the state. In its view, these tensions blocked the...

    • 2 The Evolution of Peru’s Economy
      (pp. 39-62)
      Rosemary Thorp

      This essay attempts to shed light on the relationship between the difficulties of the experimental regime that took power in Peru in 1968 and long-run trends of Peruvian economic development in the twentieth century. The first section summarizes Peru’s twentieth-century experience, drawing on a detailed analysis made elsewhere.¹ The following sections discuss the first and second phases of the military government and explore how closely the economic problems faced by each were linked to the historical pattern discerned.

      Peru’s twentieth-century economic history is characterized by a succession of export booms based on the country’s plentiful and diverse natural resources. Sugar,...

  7. II. The Experiment from Economic Perspectives
    • 3 State Capitalism in Peru: A Model of Economic Development and Its Limitations
      (pp. 65-93)
      E.V.K. FitzGerald

      The year 1978 may be taken to mark the end of the Peruvian experiment in a double sense: it saw the election of the Constituent Assembly, charged with drawing up the first constitution in nearly fifty years, and the abandonment of the economic expansion of the “Peruvian model,” upon which the military regime had based its hopes of overcoming dependency and underdevelopment. In 1980 the military permitted the very man they had replaced over a decade before, Fernando Belaunde Terry, to return to the presidency; and in the same year the economy was finally stabilized by recourse to two traditional...

    • 4 The Anatomy of an Economic Failure
      (pp. 94-143)
      Daniel M. Schydlowsky and Juan J. Wicht

      Since October 1968, and the beginning of the Peruvian experiment, much has happened in Peru. But even more has failed to happen; the promising Peruvian vision of structural reform ended in the worst economic, social, and political crisis that the country has seen in the twentieth century. Some people believe that the Peruvian experiment failed because it was not, or could not be, truly revolutionary, that Third World development requires a socialist revolution, which would eliminate private property and sharply reduce the influence of international capital. Others hold the opposite view: development requires freedom for private enterprise, open economic frontiers,...

    • 5 International Capitalism and the Peruvian Military Government
      (pp. 144-180)
      Barbara Stallings

      The influence of external forces is obviously a crucial aspect of any analysis of the Peruvian military government during the 1968–1978 period. In spite of, or perhaps because of, the importance of the actions by foreign corporations and foreign governments, there is little consensus on how to interpret them. Were they a key determinant in the downfall of Veiasco and the increasingly conservative policies of his successor or was foreign impact marginal, of little consequence in shaping the course of events in Peru? Did the military government’s policies complement or contradict the interests of foreign capital?

      At the risk...

    • 6 The Peruvian Military Government and the International Corporations
      (pp. 181-206)
      Laura Guasti

      A major goal of Juan Velasco Alvarado’s regime was to initiate autonomous economic development in Peru by placing greater control of economic activities and resources in the hands of national actors while promoting full-scale industrialization. Although the regime aimed to reduce the influence of international corporations on the economy, it only succeeded in changing which international corporate groups would have the most impact. The influence of extractive corporations with enclave orientations was reduced, but that of international manufacturers was maintained. The interactions between the government and international corporations also expanded the government’s entrepreneurial role and its capital needs much further...

  8. III. Experiment from Political Perspectives
    • 7 State Autonomy and Military Policy Making
      (pp. 209-244)
      Peter S. Cleaves and Henry Pease Garcia

      Policy making in military regimes compared with that in institutional democracies generally takes place within a smaller circle of governing elites and amid greater secrecy. Nevertheless, all leaders, the military executive included, must abide by similar rules when designing policy: they must maintain the governing coalition and mediate pressures from relevant social groups. Military leaders may find it to their advantage to open up the policy-making process, either by calling upon the expertise of state bureaucrats or by soliciting the advice of class spokesmen. These tactics help improve the policies’ technical features before promulgation and enhance their chances for popular...

    • 8 Ideological Orientations of Peru’s Military Rulers
      (pp. 245-274)
      Liisa L. North

      To what extent did the military men who ruled Peru from 1968 to 1976 share ideological orientations and goals concerning economic development and citizen participation in the reformed society they proposed to create? And how did the social conflicts generated by the attempt to carry out specific reforms affect the degree of consensus among the officers in power? I will address these questions here by first analyzing the political role of the Peruvian military from the Great Depression to the late 1960s in order to identify the nature and degree of institutional consensus and cohesion at the moment of the...

    • 9 Velasco, Officers, and Citizens: The Politics of Stealth
      (pp. 275-308)
      Cynthia McClintock

      When the government of Juan Velasco Alvarado came to power in 1968, few analysts expected it to carry through major reform initiatives.¹ The Velasco regime was of course a military government, and few Latin American military regimes had advanced significant reforms benefiting the popular classes. Moreover, in Peru the military had historically supported the positions of the nation’s elites. Indeed, many top officers in Peru’s military had participated only a few years before in the crushing of major peasant movements, and many had been trained at military schools with anticommunist principles.

      Yet by 1975, the Velasco government had successfully advanced...

    • 10 When the Military Dreams
      (pp. 309-344)
      Luis Pásara

      The emergence of Peru’s military regime was spectacular, but its collapse was simple. For these reasons, the regime’s attempt to transform Peru demands explanation. In this chapter, I seek to contribute toward an explanation of this phenomenon by describing the regime's major characteristics. I consider the regime’s origins, its mechanisms of political articulation, the role given civilian allies, and the legitimizing ideology contributed by these civilian allies. Finally, I examine the regime’s weaknesses and limitations, using in-depth analysis of the reform of justice administration as a specific example. I have based much of my discussion in this chapter upon extensive...

  9. IV. Overviews of the Peruvian Experiment
    • 11 Revolution and Redistribution in Latin America
      (pp. 347-386)
      Susan Eckstein

      Whereas the other essays in this volume highlight the Velasco regime’s attempts to use state power to transform the Peruvian socioeconomic structure and the internal and international class forces that severely dampened its efforts, this chapter compares—in terms of social and economic developments—Peru’s revolutionary experience with that of Mexico, Bolivia, and Cuba. In all four nations, the revolutions displaced dominant classes obstructing capitalist expansion.¹ Political groups assumed control of the central state apparatus through extralegal means and, at least in the countryside, destroyed the economic and political power base of the previously dominant group in a fashion that...

    • 12 The Economics of the Peruvian Experiment in Comparative Perspective
      (pp. 387-414)
      John Sheahan

      The structural reforms initiated in Peru from 1968 through 1973 deserve a special place in modern Latin American history because of their originality, their unexpected creation of new possibilities, and their concern for the underprivileged. But the long-term process needed to correct initial mistakes and to encourage wider participation by methods consistent with growth was choked off by serious failures of national economic policy with respect to exchange rates, relative prices, and the fundamental requirements of macroeconomic consistency.¹ What is particularly striking about these failures and the breakdown to which they inexorably led is their similarity to a basic pattern...

    • 13 The Peruvian Experiment Reconsidered
      (pp. 415-430)
      Abraham F. Lowenthal

      This brief essay discusses the meaning and legacy of Peru’s experiment. Its aim is to stress several central features of Peru’s experience from 1968 to 1980. I hope in this personal “afterword” to highlight some of the points this volume makes, to clarify others, and to supplement and correct a few as well.

      I have not been studying Peru systematically since 1974. Obviously, I cannot contribute new data on Peru, nor novel interpretations grounded in the contextually sensitive analysis this book features.¹ What I hope to contribute instead is a sense of perspective derived precisely from relative distance, and from...

  10. Index
    (pp. 431-442)