Peru&#039;s Path to Recovery

Carlos E. Paredes; Jeffrey D. Sachs

doi:10.5771/9780815718734

Summary

For the past fifteen years Peru has suffered a profound and lasting economic crisis that threatens the stability of the country's fragile democratic system. Economic mismanagement has led to plummeting per capita income, accelerating inflationan annualized rate of nearly 3,000 percent by 1989and widespread social upheaval. This study by experts in the United States and Latin America offers a coherent proposal for economic stabilization and structural adjustment to restore economic growthbut growth with equityto this distressed country.

The contributors provide background analysis and thorough diagnosis of Peru's economic problems. They explain how inconsistent populist policies and the ensuing economic crisis have caused the standard of living to deteriorate dramatically, paving the way for significant expansion of social violence, political instability, and isolation from the international financial community.

Peru's Path to Recovery offers an adjustment program that is sound but also is complemented by a social support program to assist the poor - those who have suffered the most from previous disadjustment. This combination makes the program both equitable and politically sustainable. With the inauguration of Alberto Fujimori, Peru has the opportunity to embrace a new economic strategy to stabilize the economy, curtail the extreme poverty, and reduce the massive unemployment and underemployment. Such a course will not be easy: patterns of government, business, and social behavior will have to change. But through such changes Peru can hope to become a stable, thriving country once more.

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Bibliographic data

Copyright year: 2010
ISBN-Print: 978-0-8157-6913-2
ISBN-Online: 978-0-8157-1873-4
Publisher: Rowman & Littlefield, Lanham
Language: English
Pages: 336
Product type: Edited Book

1. Contents No access
Prologue No access Pages 1 - 12
Introduction and Summary No access Pages 13 - 38
1. 1. Economic Characteristics and Trends No access
2. 2. The Management of Economic Policy, 1985–1989 No access
1. 3. Elements of a Stabilization Program No access
2. 4. The Social Emergency Program No access
1. 5. Macroeconomic Guidelines for Resuming Growth No access
2. 6. Fiscal Policy No access
3. 7. International Financial Relations No access
4. 8. Exchange Rate and Monetary Policy No access
5. 9. Foreign Trade Policy No access
Epilogue: In the Aftermath of Hyperinflation No access Pages 299 - 322
References No access Pages 323 - 330
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