Neoliberalism is both a political philosophy and a term used to signify the late-20th-century political reappearance of 19th-century ideas associated with free-market capitalism . The term has multiple, competing definitions, and is often used pejoratively. In scholarly use, the term is often left undefined or used to describe a multitude of phenomena. However, it is primarily employed to delineate the societal transformation resulting from market-based reforms.
189-494: The Verugas Bridge is a bridge in Peru . It has a height of 253 feet and is 574 feet in length. The first bridge - a wrought iron viaduct - was designed by Leffert L. Buck and completed in January 1873. In March 1889, after a heavy flood, the first bridge collapsed and a second bridge - a cantilever design - also designed by Leffert L. Buck was completed in January 1891. The second bridge
378-439: A constitutional monarchy , a proposal that was turned down. De la Serna abandoned the city, and on 12 July 1821, San Martín occupied Lima and declared Peruvian independence on 28 July 1821. He created the first Peruvian flag. Upper Peru (present-day Bolivia) remained as a Spanish stronghold until the army of Simón Bolívar liberated it three years later. José de San Martín was declared Protector of Peru. Peruvian national identity
567-477: A shock therapy , which rapidly transformed Chile from an economy with a protected market and strong government intervention into a liberalized, world-integrated economy, where market forces were left free to guide most of the economy's decisions. Inflation was tempered, falling from over 600% in 1974, to below 50% by 1979, to below 10% right before the economic crisis of 1982 ; GDP growth spiked (see chart) to 10%. however, inequality widened as wages and benefits to
756-415: A "slowly unfolding economic disaster" and bequeathed to the world increased inequalities, societal divisions, economic misery and a lack of meaningful politics. The Great Depression in the 1930s, which severely decreased economic output throughout the world and produced high unemployment and widespread poverty , was widely regarded as a failure of economic liberalism . To renew the damaged ideology,
945-500: A $ 900 million deficit. The economic turbulence of the time acerbated social tensions in Peru and partly contributed to the rise of violent rebel rural insurgent movements, like Sendero Luminoso (Shining Path) and MRTA , which caused great havoc throughout the country. The Peruvian armed forces, frustrated with the inability of the García administration to handle the nation's crises, drafted
1134-613: A centrist political movement from modern American liberalism in the 1970s. According to political commentator David Brooks , prominent neoliberal politicians included Al Gore and Bill Clinton of the Democratic Party of the United States. The neoliberals coalesced around two magazines, The New Republic and the Washington Monthly , and often supported Third Way policies. The "godfather" of this version of neoliberalism
1323-441: A certain set of economic beliefs. The colloquium defined the concept of neoliberalism as involving "the priority of the price mechanism, free enterprise, the system of competition, and a strong and impartial state". According to attendees Louis Rougier and Friedrich Hayek , the competition of neoliberalism would establish an elite structure of successful individuals that would assume power in society, with these elites replacing
1512-507: A civilian-military regime. Shortly after the inauguration of Fujimori, his government received a $ 715 million grant from United States Agency for International Development (USAID) on 29 September 1990 for the Policy Analysis, Planning and Implementation Project (PAPI) that was developed "to support economic policy reform in the country". De Soto proved to be influential to Fujimori, who began to repeat de Soto's advocacy for deregulating
1701-415: A drop in the real salary of the working class. They also liberalized trade policy so that foreign goods could freely enter the country. Argentina's industry, which had been on the rise for 20 years after the economic policies of former president Arturo Frondizi , rapidly declined as it was not able to compete with foreign goods. Following the measures, there was an increase in poverty from 9% in 1975 to 40% at
1890-426: A global 'free market'. Naomi Klein states that the three policy pillars of neoliberalism are " privatization of the public sphere, deregulation of the corporate sector, and the lowering of income and corporate taxes , paid for with cuts to public spending ". According to some scholars, neoliberalism is commonly used as a pejorative by critics, outpacing similar terms such as monetarism , neoconservatism ,
2079-438: A government-appointed commission that ensured Pinochet would remain as president for a further eight years—with increased powers—after which he would face a re-election referendum. The Chicago Boys were given significant political influence within the military dictatorship , and they implemented sweeping economic reform . In contrast to the extensive nationalization and centrally planned economic programs supported by Allende,
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#17328728283502268-578: A group of 25 liberal intellectuals, including a number of prominent academics and journalists like Walter Lippmann , Friedrich Hayek , Ludwig von Mises , Wilhelm Röpke , Alexander Rüstow , and Louis Rougier , organized the Walter Lippmann Colloquium , named in honor of Lippmann to celebrate the publication of the French translation of Lippmann's pro- market book An Inquiry into the Principles of
2457-618: A high biodiversity with 21,462 species of plants and animals reported as of 2003, 5,855 of them endemic , and is one of the megadiverse countries. Peru has over 1,800 species of birds (120 endemic ), over 500 species of mammals , over 300 species of reptiles, and over 1,000 species of freshwater fishes . The hundreds of mammals include rare species like the puma , jaguar and spectacled bear . The Birds of Peru produce large amounts of guano , an economically important export. The Pacific holds large quantities of sea bass , flounder , anchovies , tuna , crustaceans , and shellfish , and
2646-524: A large diversity of climates. Elevations above sea level in the country range from −37 to 6,778 m (−121 to 22,238 ft) and precipitation ranges from less than 20 mm (0.79 in) annually in desert areas to more than 8,000 mm (310 in) in tropical rainforest areas. Due to its geography, Peru can be divide into three main climates. The unbroken and relatively slim coastal region has moderate temperatures, low precipitation, and high humidity, except for its warmer, wetter northern reaches. In
2835-449: A lasting imprint on the country's governance that continues to present day. The 2000s marked economic expansion and poverty reduction, but the subsequent decade revealed long-existing sociopolitical vulnerabilities , exacerbated by a political crisis instigated by Congress and the COVID-19 pandemic , precipitating the period of unrest beginning in 2022 . The sovereign state of Peru
3024-569: A mix of cultures and ethnicities that did not exist before the Spanish conquered the Peruvian territory. Even though many of the Inca traditions were lost or diluted, new customs, traditions and knowledge were added, creating a rich mixed Peruvian culture. Two of the most important Indigenous rebellions against the Spanish were that of Juan Santos Atahualpa in 1742, and Rebellion of Túpac Amaru II in 1780 around
3213-680: A new constitution to replace the Pinochet-era constitution, which entrenched certain neoliberal principles into the country's basic law, won with 78% of the vote. However, in September 2022 , the referendum to approve a rewritten the constitution was rejected with 61% of the vote. Peruvian economist Hernando de Soto , the founder of one of the first neoliberal organizations in Latin America, Institute for Liberty and Democracy (ILD), began to receive assistance from Ronald Reagan 's administration, with
3402-628: A philosophy that was more moderate than entirely Laissez-faire free-market capitalism and favored using state policy to temper social inequality and counter a tendency towards monopoly. In 1976, the military dictatorship 's economic plan led by José Alfredo Martínez de Hoz was the first attempt at establishing a neoliberal program in Argentina. They implemented a fiscal austerity plan that reduced money printing in an attempt to counter inflation. In order to achieve this, salaries were frozen; however, they were unable to reduce inflation, which led to
3591-499: A powerful state which, in the span of a century, formed the largest empire in the pre-Columbian Americas with their capital in Cusco . The Incas of Cusco originally represented one of the small and relatively minor ethnic groups, the Quechuas . Gradually, as early as the thirteenth century, they began to expand and incorporate their neighbors. Inca expansion was slow until about the middle of
3780-671: A reduction in the rate of inflation , though Peru's poverty rate remained largely unchanged with over half of the population living in poverty in 1998. According to the Foundation for Economic Education , USAID, the United Nations Population Fund (UNFPA) and the Nippon Foundation also supported the sterilization efforts of the Fujimori government. E. Liagin reported that from 1993 to 1998, USAID "basically took charge of
3969-566: A result of these and other changes, the Spaniards and their creole successors came to monopolize control over the land, seizing many of the best lands abandoned by the massive native depopulation. However, the Spanish did not resist the Portuguese expansion of Brazil across the meridian. The Treaty of Tordesillas was rendered meaningless between 1580 and 1640 while Spain controlled Portugal . The need to ease communication and trade with Spain led to
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#17328728283504158-399: A self-imposed exile, initially avoiding prosecution for human rights violations and corruption charges by the new Peruvian authorities. Peru tried to fight corruption while sustaining economic growth at the start of the 21st century, though Fujimorism held power over much of Peruvian society through maintaining control of institutions and legislation created in the 1993 constitution, which
4347-589: A wide diversity of expressions in fields such as art , cuisine , literature , and music . The name of the country may be derived from Birú , the name of a local ruler who lived near the Bay of San Miguel , Panama City, in the early 16th century. Spanish conquistadors , who arrived in 1522, believed this was the southernmost part of the New World . When Francisco Pizarro invaded the regions farther south, they came to be designated Birú or Perú . An alternative history
4536-600: Is a representative democratic republic divided into 25 regions . Its main economic activities include mining , manufacturing , agriculture and fishing, along with other growing sectors such as telecommunications and biotechnology . The country forms part of The Pacific Pumas , a political and economic grouping of countries along Latin America's Pacific coast that share common trends of positive growth, stable macroeconomic foundations, improved governance and an openness to global integration. Peru ranks high in social freedom ; it
4725-792: Is an active member of the Asia-Pacific Economic Cooperation , the Pacific Alliance , the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the World Trade Organization ; and is considered as a middle power . Peru's population includes Mestizos , Amerindians , Europeans , Africans and Asians . The main spoken language is Spanish , although a significant number of Peruvians speak Quechuan languages , Aymara , or other Indigenous languages . This mixture of cultural traditions has resulted in
4914-444: Is broadly defined as the extension of competitive markets into all areas of life, including the economy , politics and society . The Handbook of Neoliberalism Neoliberalism is contemporarily used to refer to market-oriented reform policies such as "eliminating price controls , deregulating capital markets , lowering trade barriers " and reducing, especially through privatization and austerity , state influence in
5103-461: Is distinct from liberalism insofar as it does not advocate laissez-faire economic policy, but instead is highly constructivist and advocates a strong state to bring about market-like reforms in every aspect of society. Anthropologist Jason Hickel also rejects the notion that neoliberalism necessitates the retreat of the state in favor of totally free markets, arguing that the spread of neoliberalism required substantial state intervention to establish
5292-510: Is home to many sharks, sperm whales , and whales. The invertebrate fauna is far less inventoried; at least beetles (Coleoptera) have been surveyed in the "Beetles of Peru" project, led by Caroline S. Chaboo, University of Nebraska, USA and this revealved more 12,000 documented and many new species for Peru. Peru also has an equally diverse flora . The coastal deserts produce little more than cacti , apart from hilly fog oases and river valleys that contain unique plant life. The Highlands above
5481-715: Is near the Latin American average, Chile still has one of the highest Gini coefficients in the OECD , an organization of mostly developed countries that includes Chile but not most other Latin American countries. Furthermore, the Gini coefficient measures only income inequality ; Chile has more mixed inequality ratings in the OECD's Better Life Index , which includes indexes for more factors than only income, like housing and education . Additionally,
5670-422: Is provided by the contemporary writer Inca Garcilaso de la Vega , son of an Inca princess and a conquistador. He said the name Birú was that of a common Amerindian who was happened upon by the crew of a ship on an exploratory mission for governor Pedro Arias Dávila and went on to relate more instances of misunderstandings due to the lack of a common language. The Spanish crown gave the name legal status with
5859-579: Is the selva (jungle), a wide expanse of flat terrain covered by the Amazon rainforest that extends east. Almost 60 percent of the country's area is located within this region. The country has fifty-four hydrographic basins, fifty-two of which are small coastal basins that discharge their waters into the Pacific Ocean. The final two are the endorheic basin of Lake Titicaca , and the Amazon basin, which empties into
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6048-466: The auto-golpe ("self-coup") of 5 April 1992. He then revised the constitution, called new congressional elections, and implemented substantial economic reform, including privatization of numerous state-owned companies, creation of an investment-friendly climate, and sound management of the economy. Nonetheless, these policies did not benefit the poorest much, and inequality persisted despite Fujimori's economic achievements. Fujimori's administration
6237-464: The 2006 elections . In 2006, Alberto Fujimori's daughter, Keiko Fujimori , entered Peru's political arena to continue her father's legacy and espouse Fujimorism. In May 2008, Peru became a member of the Union of South American Nations . In April 2009, former president Alberto Fujimori was convicted of human rights violations and sentenced to 25 years in prison for his role in killings and kidnappings by
6426-551: The Amazon River . Peru has a population of over 32 million, and its capital and largest city is Lima . At 1,285,216 km (496,225 sq mi), Peru is the 19th largest country in the world , and the third largest in South America . Peruvian territory was home to several cultures during the ancient and medieval periods, and has one of the longest histories of civilization of any country, tracing its heritage back to
6615-646: The Asia-Pacific , the Middle East , and China implementing significant neoliberal reform. Additionally, the International Monetary Fund and World Bank encouraged neoliberal reforms in many developing countries by placing reform requirements on loans, in a process known as structural adjustment . Neoliberal ideas were first implemented in West Germany . The economists around Ludwig Erhard drew on
6804-510: The Ayacucho massacre and Juliaca massacre occurring at this time, resulting with the most violence experienced in the nation in over two decades. The strong response by the political elite in Lima raised concerns that they sought to establish an authoritarian or civilian-military government . Peru is located on the central western coast of South America facing the Pacific Ocean. It lies wholly in
6993-506: The Great Recession . In sum, the neoliberal policies of the 1980s and 1990s—initiated by a repressive authoritarian government —transformed the Chilean economy from a protected market with high barriers to trade and hefty government intervention into one of the world's most open free-market economies. Chile experienced the worst economic bust of any Latin American country during
7182-467: The Grupo Colina death squad during his government's battle against leftist guerrillas in the 1990s. During the presidencies of Ollanta Humala , Pedro Pablo Kuczynski and Martín Vizcarra , the right-wing Congress led by Keiko Fujimori obstructed much of the actions performed by the presidents. On 5 June 2011, Ollanta Humala was elected president, with his cabinet being successfully censured by
7371-523: The Huaca Prieta settlement. Andean societies were based on agriculture, using techniques such as irrigation and terracing ; camelid husbandry and fishing were also important. Organization relied on reciprocity and redistribution because these societies had no notion of market or money. The oldest known complex society in Peru, the Caral/Norte Chico civilization , flourished along the coast of
7560-638: The International Petroleum Corporation (IPC), the North American company that exploited Peruvian oil, and then launched a reform of the state apparatus, an agrarian reform. It was the biggest agrarian reform ever undertaken in Latin America: it abolished the latifunda system and modernized agriculture through a more equitable redistribution of land (90% of the peasants formed cooperatives or agricultural societies of social interest). Land
7749-586: The Latin American debt crisis (several years into neoliberal reform), but also had one of the most robust recoveries, rising from the poorest Latin American country in terms of GDP per capita in 1980 (along with Peru) to the richest in 2019. Average annual economic growth from the mid-1980s to the Asian crisis in 1997 was 7.2%, 3.5% between 1998 and 2005, and growth in per capita real income from 1985 to 1996 averaged 5%—all outpacing Latin American averages. Inflation
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7938-459: The National Endowment for Democracy 's Center for International Private Enterprise (CIPE) providing his ILD with funding. The economic policy of President Alan García distanced Peru from international markets, resulting in lower foreign investment in the country. Under García, Peru experienced hyperinflation and increased confrontations with the guerrilla group Shining Path , leading
8127-567: The Plan Verde , which involved the genocide of impoverished and indigenous Peruvians, the control or censorship of the media in Peru , and the establishment of a neoliberal economy controlled by a military junta . Alberto Fujimori assumed the presidency in 1990 and, according to the head of the National Intelligence Service (SIN) Rospigliosi, an understanding was established between Fujimori, Vladimiro Montesinos , and some of
8316-540: The Sapa Inca , to be the " child of the sun ." Atahualpa (or Atahuallpa), the last Sapa Inca , became emperor when he defeated and executed his older half-brother Huáscar in a civil war sparked by the death of their father, Inca Huayna Capac. In December 1532, a party of conquistadors (supported by the Chankas , Huancas , Cañaris and Chachapoyas as Indian auxiliaries ) led by Francisco Pizarro defeated and captured
8505-473: The Southern Hemisphere , its northernmost extreme reaching to 1.8 minutes of latitude or about 3.3 kilometres (2.1 mi) south of the equator , covers 1,285,216 km (496,225 sq mi) of western South America. It borders Ecuador and Colombia to the north, Brazil to the east, Bolivia to the southeast, Chile to the south, and the Pacific Ocean to the west. The Andes mountains run parallel to
8694-529: The United States , the Chilean armed forces and national police overthrew the Allende government in a coup d'état . They established a repressive military junta , known for its violent suppression of opposition , and appointed army chief Augusto Pinochet Supreme Head of the nation. His rule was later given legal legitimacy through a controversial 1980 plebiscite , which approved a new constitution drafted by
8883-498: The War of the Pacific , which lasted until 1884. Bolivia invoked its alliance with Peru against Chile. The Peruvian Government tried to mediate the dispute by sending a diplomatic team to negotiate with the Chilean government, but the committee concluded that war was inevitable. Peruvian historiography is unanimous in maintaining that the deep cause of this war was Chile's ambition to take over
9072-586: The Washington Consensus and "market reform" in much scholarly writing. The Handbook of Neoliberalism , for instance, posits that the term has "become a means of identifying a seemingly ubiquitous set of market-oriented policies as being largely responsible for a wide range of social, political, ecological and economic problems". Its use in this manner has been criticized by those who advocate for policies characterized as neoliberal. The Handbook , for example, further argues that "such lack of specificity [for
9261-505: The economic policy of classical liberalism. In the context of policymaking, the term neoliberalism is often used to describe a paradigm shift that followed the failure of the post-war consensus and neo-Keynesian economics to address the stagflation of the 1970s. The collapse of the USSR and the end of the Cold War also facilitated the rise of neoliberalism in the United States and around
9450-523: The human rights violations committed in the last years of violence. His Programa Nacional de Población also resulted with the forced sterilization of at least 300,000 poor and indigenous women. In early 1995, once again Peru and Ecuador clashed in the Cenepa War , but in 1998 the governments of both nations signed a peace treaty that clearly demarcated the international boundary between them. In November 2000, Fujimori resigned from office and went into
9639-578: The war of independence in North America , and Native uprisings all contributed to a favorable climate to the development of emancipation ideas among the C riollo population in South America. However, the Criollo oligarchy in Peru enjoyed privileges and remained loyal to the Spanish Crown. The liberation movement started in Argentina where autonomous juntas were created as a result of the loss of authority of
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#17328728283509828-607: The "clearest repudiation of the country's establishment". In the 1960s, Latin American intellectuals began to notice the ideas of ordoliberalism ; they often used the Spanish term "neoliberalismo" to refer to this school of thought. They were particularly impressed by the social market economy and the Wirtschaftswunder ("economic miracle") in Germany and speculated about the possibility of accomplishing similar policies in their own countries. Neoliberalism in 1960s Argentina meant
10017-710: The 10th millennium BCE. Notable pre-colonial cultures and civilizations include the Caral–Supe civilization (the earliest civilization in the Americas and considered one of the cradles of civilization ), the Nazca culture , the Wari and Tiwanaku empires, the Kingdom of Cusco , and the Inca Empire , the largest known state in the pre-Columbian Americas. The Spanish Empire conquered the region in
10206-642: The 1529 Capitulación de Toledo , which designated the newly encountered Inca Empire as the province of Peru. In 1561, the rebel Lope de Aguirre declared himself the "Prince" of an independent Peru, which was cut short by his arrest and execution. Under Spanish rule, the country adopted the denomination Viceroyalty of Peru , which became the Peruvian Republic from its independence until 1979 , when it adopted its current name of Republic of Peru . The earliest evidences of human presence in Peruvian territory have been dated to approximately 12,500 BCE in
10395-556: The 16th century and Charles V established a viceroyalty with the official name of the Kingdom of Peru that encompassed most of its South American territories, with its capital in Lima . Higher education started in the Americas with the official establishment of the National University of San Marcos in Lima in 1551. Peru formally proclaimed independence from Spain in 1821, and following
10584-474: The 1860s Peru enjoyed a period of stability under the presidency of Ramón Castilla , through increased state revenues from guano exports. In 1864, a Spanish expedition occupied the Chincha Islands (guano producers) and unleashed an international incident with great consequences in Peruvian internal politics, which led to a coup d'état against President Juan Antonio Pezet , Mariano's government. Peru, with
10773-490: The 1980s, "have contributed to steady economic growth in Chile and have more than halved poverty rates," and some scholars have even called the period the " Miracle of Chile ". Other scholars have called it a failure that led to extreme inequalities in the distribution of income and resulted in severe socioeconomic damage. It is also contested how much these changes were the result of neoliberal economic policies and how much they were
10962-500: The 1990s, Chile maintained high growth, averaging 7.3% from 1990 to 1998. Eduardo Aninat, writing for the IMF journal Finance & Development , called the period from 1986 to 2000 "the longest, strongest, and most stable period of growth in [Chile's] history." In 1999, there was a brief recession brought about by the Asian financial crisis , with growth resuming in 2000 and remaining near 5% until
11151-422: The 20th century, Peru grappled with political and social instability, including the internal conflict between the state and guerrilla groups, interspersed with periods of economic growth. Implementation of Plan Verde shifted Peru towards neoliberal economics under the authoritarian rule of Alberto Fujimori and Vladimiro Montesinos in the 1990s, with the former's political ideology of Fujimorism leaving
11340-560: The Amazon. The largest lake in Peru , Lake Titicaca between Peru and Bolivia high in the Andes, is also the largest of South America. The largest reservoirs , all in the coastal region of Peru, are the Poechos , Tinajones, San Lorenzo, and El Fraile reservoirs. Although Peru is located entirely in the tropics , the combination of tropical latitude, mountain ranges, topography variations, and two ocean currents ( Humboldt and El Niño ) gives Peru
11529-526: The Atlantic Ocean. Both are delimited by the Andes mountain range. The Amazon basin is particularly noteworthy as it is the source of the Amazon River, which at 6872 km, is the longest river in the world, and covers 75% of Peruvian territory. Peru contains 4% of the planet's freshwater. Most Peruvian rivers originate in the peaks of the Andes and drain into one of three basins . Those that drain toward
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#173287282835011718-561: The Chicago Boys implemented rapid and extensive privatization of state enterprises, deregulation, and significant reductions in trade barriers during the latter half of the 1970s. In 1978, policies that would further reduce the role of the state and infuse competition and individualism into areas such as labor relations, pensions, health and education were introduced. > Additionally, the central bank raised interest rates from 49.9% to 178% to counter high inflation. These policies amounted to
11907-605: The Chimu flourished from about 1140 to 1450. Their capital was at Chan Chan outside of modern-day Trujillo . In the highlands, both the Tiahuanaco culture, near Lake Titicaca in both Peru and Bolivia, and the Wari culture, near the present-day city of Ayacucho , developed large urban settlements and wide-ranging state systems between 500 and 1000 CE. In the 15th century, the Incas emerged as
12096-462: The Devil, who was working "through them to frustrate" their foundations. It only took a generation to convert the population. They built churches in every city and replaced some of the Inca temples with churches, such as the Coricancha in the city of Cusco. The church employed the Inquisition , making use of torture to ensure that newly converted Catholics did not stray to other religions or beliefs, and monastery schools, educating girls, especially of
12285-422: The English-language study of political economy. According to one study of 148 scholarly articles, neoliberalism is almost never defined but used in several senses to describe ideology, economic theory, development theory, or economic reform policy. It has become used largely as a term of abuse and/or to imply a laissez-faire market fundamentalism virtually identical to that of classical liberalism – rather than
12474-462: The Fujimorist Congress. Beginning with Pedro Pablo Kuczynski , Congress used broadly interpreted impeachment wording in the 1993 Constitution of Peru that allowed impeachment of the president without cause to place pressure on the president, forcing him to resign in 2018 amid various controversies surrounding his administration. Vice president Martín Vizcarra then assumed office in March 2018 with generally favorable approval ratings as he led
12663-458: The German neoliberals, his name was only occasionally mentioned in conjunction with neoliberalism during this period due to his more pro-free market stance. During the military rule under Augusto Pinochet (1973–1990) in Chile, opposition scholars took up the expression to describe the economic reforms implemented there and its proponents (the Chicago Boys ). Once this new meaning was established among Spanish-speaking scholars, it diffused into
12852-404: The God of the Sun who ruled from a magnificently rebuilt Cusco. From 1438 to 1533, the Incas used a variety of methods, from conquest to peaceful assimilation, to incorporate a large portion of western South America, centered on the Andean mountain ranges, from southern Colombia to northern Chile, between the Pacific Ocean in the west and the Amazon rainforest in the east. The official language of
13041-460: The Good Society . Meeting in Paris in August 1938, they called for a new liberal project, with "neoliberalism" one name floated for the fledgling movement. They further agreed to develop the Colloquium into a permanent think tank based in Paris called the Centre International d'Études pour la Rénovation du Libéralisme. While most agreed that the status quo liberalism promoting laissez-faire economics had failed, deep disagreements arose around
13230-411: The Great Depression while Mises denounced the other faction, complaining that the ordoliberalism they advocated really meant "ordo-interventionism". Divided in opinion and short on funding, the Colloquium was mostly ineffectual; related attempts to further neoliberal ideas, such as the effort by Colloque-attendee Wilhelm Röpke to establish a journal of neoliberal ideas, mostly floundered. Fatefully,
13419-442: The Inca Emperor Atahualpa in the Battle of Cajamarca . After years of preliminary exploration and military conflicts, it was the first step in a long campaign that took decades of fighting but ended in Spanish victory and colonization of the region known as the Viceroyalty of Peru with its capital at Lima , which was then known as "La Ciudad de los Reyes" (The City of Kings). The conquest of Peru led to spin-off campaigns throughout
13608-468: The Inca nobility and upper class, "until they were old enough either to profess [to become a nun] or to leave the monastery and assume the role ('estado') in the Christian society that their fathers planned to erect" in Peru. Peruvian Catholicism follows the syncretism found in many Latin American countries, in which religious native rituals have been integrated with Christian celebrations. In this endeavor,
13797-522: The Italian economist Maffeo Pantaleoni , with the term néo-libéralisme previously existing in French; the term was later used by others, including the classical liberal economist Milton Friedman in his 1951 essay "Neo-Liberalism and its Prospects". In 1938 at the Colloque Walter Lippmann , the term neoliberalism was proposed, among other terms, and ultimately chosen to be used to describe
13986-517: The National Library ( in favor of knowledge), the approval of the National Anthem, and the abolition of the mita (in favor of the indigenous people). On December 27, 1821, San Martín created three ministries: Ministry of State and Foreign Affairs, committing Juan García del Río; Ministry of War and Navy , to Bernardo de Monteagudo; and Ministry of Finance, to Hipólito Unanue. From the 1840s to
14175-747: The Pacific Ocean are steep and short, flowing only intermittently. Tributaries of the Amazon River have a much larger flow, and are longer and less steep once they exit the sierra . Rivers that drain into Lake Titicaca are generally short and have a large flow. Peru's longest rivers are the Ucayali , the Marañón , the Putumayo , the Yavarí , the Huallaga , the Urubamba , the Mantaro , and
14364-404: The Pacific Ocean between 3,000 and 1,800 BCE. These early developments were followed by archaeological cultures that developed mostly around the coastal and Andean regions throughout Peru. The Cupisnique culture which flourished from around 1000 to 200 BCE along what is now Peru's Pacific coast was an example of early pre- Inca culture . The Chavín culture that developed from 1500 to 300 BCE
14553-473: The Pacific Ocean; they define the three regions traditionally used to describe the country geographically. The costa (coast), to the west, is a narrow, largely arid plain except for valleys created by seasonal rivers. The sierra (highlands) is the region of the Andes; it includes the Altiplano plateau as well as the highest peak of the country, the 6,768 m (22,205 ft) Huascarán . The third region
14742-509: The Pacific War. The casus belli was the confrontation between Bolivia and Chile over a tax problem in which Peru was compromised by the Treaty of Defensive Alliance signed with Bolivia in 1873. However, Peruvian historiography is unanimous in maintaining that the deep cause of This war was Chile's ambition to take over the nitrate and guano territories of southern Peru.92 In the first stage of the war,
14931-533: The Peruvian economy. Under Fujimori, de Soto served as "the President's personal representative", with The New York Times describing de Soto as an "overseas salesman", while others dubbed de Soto as the "informal president" for Fujimori. In a recommendation to Fujimori, de Soto called for a "shock" to Peru's economy. The policies included a 300% tax increase, unregulated prices and privatizing two-hundred and fifty state-owned entities. The policies of de Soto led to
15120-571: The Philippines. The commercial and population exchanges between Latin America and Asia undergone via the Manila Galleons transiting through Acapulco, had Callao at Peru as the furthest endpoint of the trade route in the Americas. In relation to this, Don Sebastian Hurtado de Corcuera , governor of Panama was also responsible for settling Zamboanga City in the Philippines by employing Peruvian soldiers and colonists. African slaves were added to
15309-522: The Spanish government over its colonies. After fighting for the independence of the Viceroyalty of Rio de la Plata, José de San Martín created the Army of the Andes and crossed the Andes in 21 days. Once in Chile, he joined forces with Chilean army General Bernardo O'Higgins and liberated the country in the battles of Chacabuco and Maipú in 1818. On 7 September 1820, a fleet of eight warships arrived in
15498-466: The Treaty, and neither of the countries could determine the statutory framework. The War of the Pacific was the bloodiest war Peru has fought in. After the War of the Pacific, an extraordinary effort of rebuilding began. The government started to initiate a number of social and economic reforms to recover from the damage of the war. Political stability was achieved only in the early 1900s. Internal struggles after
15687-417: The Viceroyalty of Peru. Eventually, the viceroyalty would dissolve, as with much of the Spanish empire, when challenged by national independence movements at the beginning of the nineteenth century. These movements led to the formation of the majority of modern-day countries of South America in the territories that at one point or another had constituted the Viceroyalty of Peru. The conquest and colony brought
15876-461: The anti-corruption constitutional referendum movement. The COVID-19 pandemic resulted with Peru experiencing the highest death rate from COVID-19 in the world, exposing much of the inequality that persisted since the Fujimori administration and triggering an economic crisis that led to Vizcara's removal from the presidency by Congress . Widely seen as a coup by Congress, its head, the newly seated President Manuel Merino , faced protests across
16065-608: The authorities – to a status equivalent to that of Spanish and established equal rights for natural children. Peru wished to free itself from any dependence and carried out a third-world foreign policy. The United States responded with commercial, economic and diplomatic pressure. In 1973 Peru seemed to triumph over the financial blockade imposed by Washington by negotiating a loan from the International Development Bank to finance its agricultural and mining development policy. The relations with Chile became very tense after
16254-482: The benefits are concentrated in Lima." In 2020, the COVID-19 pandemic in Peru compounded these disparities, with political scientist Professor Farid Kahhat of the Pontifical Catholic University of Peru stating that, "market reforms in Peru have yielded positive results in terms of reducing poverty ... But what the pandemic has laid bare, particularly in Peru, is that poverty was reduced while leaving
16443-502: The bombings of Tarata and Frecuencia Latina by Sendero Luminoso. Fujimori would also broaden the definition of terrorism in an effort to criminalize as many actions possible to persecute left-wing political opponents. Using the terruqueo , a fearmongering tactic that was used to accuse opponents of terrorism, Fujimori established a cult of personality by portraying himself as a hero and made left-wing ideologies an eternal enemy in Peru. Those incidents subsequently came to symbolize
16632-496: The boundary between those two countries. In a military coup on 29 October 1948, General Manuel A. Odría became president. Odría's presidency was known as the Ochenio . He came down hard on APRA, momentarily pleasing the oligarchy and all others on the right, but followed a populist course that won him great favor with the poor and lower classes. A thriving economy allowed him to indulge in expensive but crowd-pleasing social policies. At
16821-697: The church came to play an important role in the acculturation of the Natives, drawing them into the cultural orbit of the Spanish settlers. By the 18th century, declining silver production and economic diversification greatly diminished royal income. In response, the Crown enacted the Bourbon Reforms , a series of edicts that increased taxes and partitioned the Viceroyalty . The new laws provoked Túpac Amaru II's rebellion and other revolts, all of which were suppressed. As
17010-474: The classical liberal notion that competition drives economic prosperity. However, they argued that a laissez-faire state policy stifles competition, as the strong devour the weak since monopolies and cartels could pose a threat to freedom of competition. They supported the creation of a well-developed legal system and capable regulatory apparatus. While still opposed to full-scale Keynesian employment policies or an extensive welfare state , German neoliberal theory
17199-448: The command of Gregorio Escobedo. Because Peru was the stronghold of the Spanish government in South America, San Martín's strategy to liberate Peru was to use diplomacy. He sent representatives to Lima urging the Viceroy that Peru be granted independence, however, all negotiations proved unsuccessful. The Viceroy of Peru, Joaquín de la Pazuela named José de la Serna commander-in-chief of
17388-448: The country in the 1570s with gold and silver mining as its main economic activity and Amerindian forced labor as its primary workforce. With the discovery of the great silver and gold lodes at Potosí (present-day Bolivia) and Huancavelica , the viceroyalty flourished as an important provider of mineral resources. Peruvian bullion provided revenue for the Spanish Crown and fueled a complex trade network that extended as far as Europe and
17577-430: The country towards high levels of instability. The Peruvian armed forces grew frustrated with the inability of the García administration to handle the nation's crises and began to draft an operation – Plan Verde – to overthrow his government. The military's Plan Verde involved the " total extermination " of impoverished and indigenous Peruvians perceived as a drain on the economy, the control or censorship of media in
17766-579: The country, and after five days, Merino resigned from the presidency. Merino was replaced by President Francisco Sagasti , who led a provisional, centrist government, and enforced many of Vizcarra's former policies. Elections were held on 11 April 2021, and Pedro Castillo of the Free Peru party won the first round, followed closely by Keiko Fujimori, with right-wing parties allied with Fujimori maintaining positions in Congress. On 28 July 2021, Pedro Castillo
17955-456: The country. After the country experienced chronic inflation , the Peruvian sol was replaced by the inti in mid-1985, which itself was replaced by the nuevo sol in July 1991 (the new sol had a cumulative value of one billion old soles). At the end of the 1980s, the per capita annual income of Peruvians fell to $ 720 (below the level of 1960) and Peru's GDP dropped 20%, with national reserves running
18144-773: The coup d'état of the general Pinochet . General Edgardo Mercado Jarrin (Prime Minister and Commander-in-Chief of the Army) and Admiral Guillermo Faura Gaig (Minister of the Navy) both escaped assassination attempts within weeks of each other. In 1975 General Francisco Morales Bermúdez Cerruti seized power and broke with the policies of his predecessor. His regime occasionally participated in Operation Condor in collaboration with other American military dictatorships. President Alan García 's economic policies distanced Peru from international markets further, resulting in lower foreign investment in
18333-447: The developed world was under threat from collectivist trends, which they outlined in their statement of aims: The central values of civilization are in danger. Over large stretches of the Earth's surface the essential conditions of human dignity and freedom have already disappeared. In others, they are under constant menace from the development of current tendencies of policy. The position of
18522-444: The earliest nations to implement neoliberal reform. Marxist economic geographer David Harvey has described the substantial neoliberal reforms in Chile beginning in the 1970s as "the first experiment with neoliberal state formation", which would provide "helpful evidence to support the subsequent turn to neoliberalism in both Britain... and the United States." Similarly, Vincent Bevins says that Chile under Augusto Pinochet "became
18711-604: The early 1970s. After several years of socialist economic policies under president Salvador Allende , a 1973 coup d'état , which established a military junta under dictator Augusto Pinochet , led to the implementation of a number of sweeping neoliberal economic reforms that had been proposed by the Chicago Boys , a group of Chilean economists educated under Milton Friedman . This "neoliberal project" served as "the first experiment with neoliberal state formation" and provided an example for neoliberal reforms elsewhere. Beginning in
18900-564: The early 1980s, the Reagan administration and Thatcher government implemented a series of neoliberal economic reforms to counter the chronic stagflation the United States and United Kingdom had each experienced throughout the 1970s. Neoliberal policies continued to dominate American and British politics until the Great Recession . Following British and American reform, neoliberal policies were exported abroad, with countries in Latin America ,
19089-446: The east by Brazil , in the southeast by Bolivia , in the south by Chile , and in the south and west by the Pacific Ocean. Peru is a megadiverse country , with habitats ranging from the arid plains of the Pacific coastal region in the west, to the peaks of the Andes mountains extending from the north to the southeast of the country, to the tropical Amazon basin rainforest in the east with
19278-513: The economy. It is also commonly associated with the economic policies introduced by Margaret Thatcher in the United Kingdom and Ronald Reagan in the United States. Some scholars note it has a number of distinct usages in different spheres: There is debate over the meaning of the term. Sociologists Fred L. Block and Margaret Somers claim there is a dispute over what to call the influence of free-market ideas which have been used to justify
19467-550: The economy. It would not be until a succession of economic downturns and crises in the 1970s that neoliberal policy proposals would be widely implemented. By this time, neoliberal thought had evolved. The early neoliberal ideas of the Mont Pelerin Society had sought to chart a middle way between the trend of increasing government intervention implemented after the Great Depression and the laissez-faire economics many in
19656-484: The efforts of the Colloquium would be overwhelmed by the outbreak of World War II and were largely forgotten. Nonetheless, the Colloquium served as the first meeting of the nascent neoliberal movement and would serve as the precursor to the Mont Pelerin Society , a far more successful effort created after the war by many of those who had been present at the Colloquium. Neoliberalism began accelerating in importance with
19845-500: The empire was Quechua , although hundreds of local languages and dialects were spoken. The Inca referred to their empire as Tawantinsuyu which can be translated as "The Four Regions" or "The Four United Provinces." Many local forms of worship persisted in the empire, most of them concerning local sacred Huacas , but the Inca leadership encouraged the worship of Inti , the sun god and imposed its sovereignty above other cults such as that of Pachamama . The Incas considered their King,
20034-445: The epicenter of the community as Europeans dominated the leadership roles. Established during a time when central planning was in the ascendancy worldwide and there were few avenues for neoliberals to influence policymakers, the society became a "rallying point" for neoliberals, as Milton Friedman phrased it, bringing together isolated advocates of liberalism and capitalism . They were united in their belief that individual freedom in
20223-472: The establishment of the Mont Pelerin Society in 1947, whose founding members included Friedrich Hayek , Milton Friedman , Karl Popper , George Stigler and Ludwig von Mises . Meeting annually, it became a "kind of international 'who's who' of the classical liberal and neo-liberal intellectuals." While the first conference in 1947 was almost half American, the Europeans dominated by 1951. Europe would remain
20412-577: The existing representative democracy acting on the behalf of the majority. To be neoliberal meant advocating a modern economic policy with state intervention . Neoliberal state interventionism brought a clash with the opposing laissez-faire camp of classical liberals, like Ludwig von Mises . Most scholars in the 1950s and 1960s understood neoliberalism as referring to the social market economy and its principal economic theorists such as Walter Eucken , Wilhelm Röpke , Alexander Rüstow and Alfred Müller-Armack . Although Hayek had intellectual ties to
20601-558: The fifteenth century, when the pace of conquest began to accelerate, particularly under the rule of the emperor Pachacuti . Under his rule and that of his son, Topa Inca Yupanqui , the Incas came to control most of the Andean region, with a population of 9 to 16 million inhabitants under their rule. Pachacuti also promulgated a comprehensive code of laws to govern his far-flung empire, while consolidating his absolute temporal and spiritual authority as
20790-460: The first parliament was assembled. The newly founded Peruvian Congress named Bolívar dictator of Peru, giving him the power to organize the military. With the help of Antonio José de Sucre , they defeated the larger Spanish army in the Battle of Junín on 6 August 1824 and the decisive Battle of Ayacucho on 9 December of the same year, consolidating the independence of Peru and Upper Peru. Upper Peru
20979-653: The following three decades. A final peace treaty in 1929, signed between Peru and Chile called the Treaty of Lima , returned Tacna to Peru. Between 1932 and 1933, Peru was engulfed in a year-long war with Colombia over a territorial dispute involving the Amazonas Department and its capital Leticia . In 1941 Peru and Ecuador fought the Ecuadorian–Peruvian War , after which the Rio Protocol sought to formalize
21168-645: The former seeks to disrupt and overcome any institutions which stand in the way. Radhika Desai, director of the Geopolitical Economy Research Group at the University of Manitoba , argues that global capitalism reached its peak in 1914, just prior to the two great wars, anti-capitalist revolutions and Keynesian reforms, and the purpose of neoliberalism was to restore capitalism to the preeminence it once enjoyed. She argues that this process has failed as contemporary neoliberal capitalism has fostered
21357-499: The fray and since then became Peru's greatest hero. Almost five years of war ended with the loss of the department of Tarapacá and the provinces of Tacna and Arica , in the Atacama region. Francisco Bolognesi and Miguel Grau are both renowned heros of the war. Originally Chile committed to a referendum for the cities of Arica and Tacna to be held years later, to self determine their national affiliation. However, Chile refused to apply
21546-429: The fringes of Chilean economic and political thought for a number of years, as the presidency of Salvador Allende (1970–1973) brought about a socialist reorientation of the economy. During the Allende presidency, Chile experienced a severe economic crisis, in which inflation peaked near 150%. Following an extended period of social unrest and political tension, as well as diplomatic, economic, and covert pressure from
21735-481: The gloves off", goes on to assert that the term was largely unknown by the general public in 1998, particularly in the United States . Lester Spence uses the term to critique trends in Black politics, defining neoliberalism as "the general idea that society works best when the people and the institutions within it work or are shaped to work according to market principles". According to Philip Mirowski , neoliberalism views
21924-437: The government, which was received with disapproval by Fujimori. USAID would go on to assist the Fujimori government with rewriting the 1993 Peruvian constitution, with the agency concluding in 1997 that it helped with the "preparation of legislative texts" and "contributed to the emergence of a private sector advisory role". The policies promoted by de Soto and implemented by Fujimori eventually caused macroeconomic stability and
22113-438: The growth of a view of history which denies all absolute moral standards and by the growth of theories which question the desirability of the rule of law. It holds further that they have been fostered by a decline of belief in private property and the competitive market...[This group's] object is solely, by facilitating the exchange of views among minds inspired by certain ideals and broad conceptions held in common, to contribute to
22302-520: The help of Bolivia , Chile and Ecuador , sent a declaration of war on Spain. After the battle of Callao on May 2, 1866, the Spanish Navy withdrew from Peru. The government of José Balta was lavish in infrastructure works (construction of the Central Railway ) although the first signs of excess government spending were already perceived. By the 1870s the guano resources had been depleted, the country
22491-450: The high interest rates of the period which—while stabilizing inflation—hampered investment and contributed to widespread bankruptcy in the banking industry. Other scholars fault governmental departures from the neoliberal agenda ; for instance, the government pegged the Chilean peso to the US dollar, against the wishes of the Chicago Boys, which economists believe led to an overvalued peso. After
22680-479: The highlands near Cuzco. In the early 19th century, while most South American nations were swept by wars of independence , Peru remained a royalist stronghold. As the elite vacillated between emancipation and loyalty to the Spanish monarchy, independence was achieved only after the occupation by military campaigns of José de San Martín and Simón Bolívar . The economic crises, the loss of power of Spain in Europe,
22869-421: The idea that the word is nothing more than a political slur, or a term without any analytic power". Gary Gerstle argues that neoliberalism is a legitimate term, and describes it as "a creed that calls explicitly for unleashing capitalism's power." He distinguishes neoliberalism from traditional conservatism, as the latter values respect for traditions and bolstering the institutions which reinforce them, whereas
23058-401: The ideas of those who attended the 1938 colloquium. As a result, there is controversy as to the precise meaning of the term and its usefulness as a descriptor in the social sciences , especially as the number of different kinds of market economies have proliferated in recent years. Unrelated to the economic philosophy described in this article, the term "neoliberalism" is also used to describe
23247-485: The immediate suffering of poor Peruvians who saw unregulated prices increase rapidly. Those living in poverty saw prices increase so much that they could no longer afford food. The New York Times wrote that de Soto advocated for the collapse of Peru's society, with the economist saying that a civil crisis was necessary to support the policies of Fujimori. Fujimori and de Soto would ultimately break their ties after de Soto recommended increased involvement of citizens within
23436-461: The increased economic freedom he believed the neoliberal reforms had brought had put pressure on the dictatorship over time, resulting in a gradual increase in political freedom and, ultimately, the restoration of democracy. The Chilean scholars Javier Martínez and Alvaro Díaz reject this argument, pointing to the long tradition of democracy in Chile. They assert that the defeat of the Pinochet regime and
23625-477: The individual and the voluntary group are progressively undermined by extensions of arbitrary power. Even that most precious possession of Western Man, freedom of thought and expression, is threatened by the spread of creeds which, claiming the privilege of tolerance when in the position of a minority, seek only to establish a position of power in which they can suppress and obliterate all views but their own...The group holds that these developments have been fostered by
23814-522: The interventionist excesses of the Erhard ministry and the ordoliberals, Mises wrote: "I have no illusions about the true character of the politics and politicians of the social market economy". According to Mises, Erhard's teacher Franz Oppenheimer "taught more or less the New Frontier line of" President Kennedy's "Harvard consultants ( Schlesinger , Galbraith , etc.)". In Germany, neoliberalism at first
24003-432: The label "neoliberalism", criticized that development tendency and pressed for a more limited welfare program. Hayek did not like the expression "social market economy", but stated in 1976 that some of his friends in Germany had succeeded in implementing the sort of social order for which he was pleading while using that phrase. In Hayek's view, the social market economy's aiming for both a market economy and social justice
24192-465: The labor population to expand the workforce. The expansion of a colonial administrative apparatus and bureaucracy paralleled the economic reorganization. With the conquest started the spread of Christianity in South America; most people were forcefully converted to Catholicism , with Spanish clerics believing like Puritan divines of English colonies later that the Native Peoples "had been corrupted by
24381-477: The liberal focus on individualism and economic freedom must not be abandoned to collectivism. For decades after the formation of the Mont Pelerin Society , the ideas of the society would remain largely on the fringes of political policy, confined to a number of think-tanks and universities and achieving only measured success with the ordoliberals in Germany , who maintained the need for strong state influence in
24570-410: The loyalist army to protect Lima from the threatened invasion by San Martín. On 29 January, de la Serna organized a coup against de la Pazuela, which was recognized by Spain and he was named Viceroy of Peru. This internal power struggle contributed to the success of the liberating army. To avoid a military confrontation, San Martín met the newly appointed viceroy, José de la Serna, and proposed to create
24759-442: The market as the greatest information processor, superior to any human being. It is hence considered as the arbiter of truth. Adam Kotsko describes neoliberalism as political theology , as it goes beyond simply being a formula for an economic policy agenda and instead infuses it with a moral ethos that "aspires to be a complete way of life and a holistic worldview, in a way that previous models of capitalism did not." Neoliberalism
24948-404: The mid-1980s, after French philosopher Michel Foucault brought attention to it. At a base level we can say that when we make reference to 'neoliberalism', we are generally referring to the new political, economic and social arrangements within society that emphasize market relations, re-tasking the role of the state, and individual responsibility . Most scholars tend to agree that neoliberalism
25137-421: The military campaigns of Bernardo O'Higgins , José de San Martín , and Simón Bolívar , as well as the decisive battle of Ayacucho , it completed its independence in 1824 . In the ensuing years, the country first suffered from political instability until a period of relative economic and political stability began due to the exploitation of guano that ended with the War of the Pacific (1879–1884). Throughout
25326-526: The military officers involved in Plan Verde to abide by the military's demands prior to Fujimori's inauguration. Fujimori would go on to adopt many of the policies outlined in Plan Verde, which led to a precitious drop in infliation from 7,650% at the start of 1990 to 139% in 1991 and 57% in 1992. When Fujimori faced opposition to his reform efforts, he dissolved Congress, suspending the judiciary, arresting several opposition leaders and assuming full powers in
25515-427: The miserable state of public services unaltered – most clearly in the case of health services." The candidacy of Pedro Castillo in the 2021 Peruvian general election brought attention to the disparities between urban and rural Peruvians, with much of his support being earned in the exterior portions of the country. Castillo ultimately won the election, with The New York Times reporting his victory as
25704-420: The more outstanding Chimu and Moche . The Moche, who reached their apogee in the first millennium CE, were renowned for their irrigation system which fertilized their arid terrain, their sophisticated ceramic pottery, their lofty buildings, and clever metalwork. The Chimu were the great city builders of pre-Inca civilization; as a loose confederation of walled cities scattered along the coast of northern Peru,
25893-469: The most important old age income source for a majority of the German population, therefore despite liberal rhetoric the 1950s witnessed what has been called a "reluctant expansion of the welfare state". To end widespread poverty among the elderly the pension reform of 1957 brought a significant extension of the German welfare state which already had been established under Otto von Bismarck . Rüstow, who had coined
26082-451: The mountain region, which covers almost a third of the country, rain is frequent in summer, and temperature and humidity diminish with altitude up to the frozen peaks of the Andes. The Peruvian Amazon , covering more than half of the total area of Peru, is characterized by heavy rainfall and high temperatures, except for its southernmost part, which has cold winters and seasonal rainfall. Because of its varied geography and climate, Peru has
26271-469: The nation and the establishment of a neoliberal economy in Peru. During his campaigning for the 1990 Peruvian general election , Alberto Fujimori initially expressed concern against the proposed neoliberal policies of his opponent Mario Vargas Llosa . Peruvian magazine Oiga reported that, following the election, the armed forces were unsure of Fujimori's willingness to fulfill the plan's objectives, though they planned to convince Fujimori to agree to
26460-573: The national health system of Peru" during the period of forced sterilizations. At least 300,000 Peruvians were victims of forced sterilization by the Fujimori government in the 1990s, with the majority being affected by the PNSRPF . The policy of sterilizations resulted in a generational shift that included a smaller younger generation that could not provide economic stimulation to rural areas, making such regions more impoverished. Though economic statistics show improved economic data in Peru in recent decades,
26649-418: The naval campaign, the Peruvian navy repelled the Chilean attack until October 8, 1879, the day in which the naval combat of Angamos was fought, where the Chilean navy with its ships Cochrane, Blanco Encalada, Loa and Covadonga cornered the monitor Huáscar, the main ship of the Peruvian navy commanded by Admiral AP Miguel Grau, who died in the fray and since then became Peru's greatest hero. In 1879 Peru entered
26838-618: The neoliberal policies of the Chicago boys. Some scholars attribute the successes to the re-regulation of the banking industry and a number of targeted social programs designed to alleviate poverty. Others say that while the economy had stabilized and was growing by the late 1980s, inequality widened: nearly 45% of the population had fallen into poverty while the wealthiest 10% had seen their incomes rise by 83%. According to Chilean economist Alejandro Foxley , when Pinochet finished his 17-year term by 1990, around 44% of Chilean families were living below
27027-511: The new meaning of neoliberalism became established as common usage among Spanish-speaking scholars, it diffused into the English-language study of political economy . By 1994 the term entered global circulation and scholarship about it has grown over the last few decades. An early use of the term in English was in 1898 by the French economist Charles Gide to describe the economic beliefs of
27216-442: The nitrate and guano territories of southern Peru and Bolivia. In the first stage of the war, the naval campaign, the Peruvian navy repelled the Chilean attack until October 8, 1879, the day in which the naval combat of Angamos was fought, where the Chilean navy with its ships Cochrane, Blanco Encalada, Loa and Covadonga cornered the monitor Huáscar , the main ship of the Peruvian navy, commanded by Admiral AP Miguel Grau, who died in
27405-411: The operation prior to his inauguration. After taking office, Fujimori abandoned his campaign's economic platform, adopting more aggressive neoliberal policies than those espoused by his election competitor Vargas Llosa. With Fujimori's compliance, plans for a coup as designed in Plan Verde were prepared for two years and finally executed during the 1992 Peruvian coup d'état , which ultimately established
27594-466: The opposition-controlled legislature and create an "exceptional emergency government." In response, Congress quickly held an emergency session on the same day, during which it voted 101–6 (with 10 abstentions) to remove Castillo from office and replace him with Vice President Dina Boluarte . She became the country's first female president. Castillo was arrested after trying to flee to the Mexican embassy and
27783-433: The percentage of the Chilean population living in poverty rose from 17% in 1969 to 45% in 1985 at the same time government budgets for education, health and housing dropped by over 20% on average. The era was also marked by economic instability. Overall, scholars have mixed opinions on the effects of the neoliberal reforms. The CIA World Factbook states that Chile's "sound economic policies", maintained consistently since
27972-536: The port of Paracas under the command of General José de San Martín and Thomas Cochrane , who was serving in the Chilean Navy. Immediately on 26 October, they took control of the town of Pisco . San Martín settled in Huacho on 12 November, where he established his headquarters while Cochrane sailed north and blockaded the port of Callao in Lima. At the same time in the north, Guayaquil was occupied by rebel forces under
28161-583: The poverty line. Despite years of suppression by the Pinochet junta, a presidential election was held in 1988, as dictated by the 1980 constitution (though not without Pinochet first holding another plebiscite in an attempt to amend the constitution). In 1990, Patricio Aylwin was democratically elected, bringing an end to the military dictatorship. The reasons cited for Pinochet's acceptance of democratic transition are numerous. Hayek, echoing arguments he had made years earlier in The Road to Serfdom , argued that
28350-624: The preservation and improvement of the free society. The society set out to develop a neoliberal alternative to, on the one hand, the laissez-faire economic consensus that had collapsed with the Great Depression and, on the other, New Deal liberalism and British social democracy , collectivist trends which they believed posed a threat to individual freedom. They believed that classical liberalism had failed because of crippling conceptual flaws which could only be diagnosed and rectified by withdrawing into an intensive discussion group of similarly minded intellectuals; however, they were determined that
28539-413: The proper role of the state . A group of "true (third way) neoliberals" centered around Rüstow and Lippmann advocated for strong state supervision of the economy while a group of old school liberals centered around Mises and Hayek continued to insist that the only legitimate role for the state was to abolish barriers to market entry. Rüstow wrote that Hayek and Mises were relics of the liberalism that caused
28728-404: The recession, Chilean economic growth rose quickly, eventually hovering between 5% and 10% and significantly outpacing the Latin American average (see chart). Additionally, unemployment decreased and the percent of the population below the poverty line declined from 50% in 1984 to 34% by 1989. This led Milton Friedman to call the period the " Miracle of Chile ", and he attributed the successes to
28917-592: The result of other factors; in particular, some scholars argue that after the Crisis of 1982 the "pure" neoliberalism of the late 1970s was replaced by a focus on fostering a social market economy that mixed neoliberal and social welfare policies. As a response to the 2019–20 Chilean protests , a national plebiscite was held in October 2020 to decide whether the Chilean constitution would be rewritten. The "approve" option for
29106-497: The retrenchment of New Deal programs and policies since the 1980s: neoliberalism, laissez-faire or "free market ideology". Other academics such as Susan Braedley, Med Luxton, and Robert W. McChesney, assert that neoliberalism is a political philosophy which seeks to "liberate" the processes of capital accumulation . In contrast, Frances Fox Piven sees neoliberalism as essentially hyper- capitalism . Robert W. McChesney , while defining neoliberalism similarly as "capitalism with
29295-525: The return of democracy came primarily from large-scale mass rebellion that eventually forced party elites to use existing institutional mechanisms to restore democracy. In the 1990s, neoliberal economic policies broadened and deepened, including unilateral tariff reductions and the adoption of free trade agreements with a number of Latin American countries and Canada. At the same time, the decade brought increases in government expenditure on social programs to tackle poverty and poor quality housing. Throughout
29484-545: The role of the private sector in the economy and society . Additionally, the neoliberal project is oriented towards the establishment of institutions and is inherently political in nature, extending beyond mere economic considerations. The term is rarely used by proponents of free-market policies. When the term entered into common academic use during the 1980s in association with Augusto Pinochet 's economic reforms in Chile , it quickly acquired negative connotations and
29673-492: The same time, however, civil rights were severely restricted and corruption was rampant throughout his regime. Odría was succeeded by Manuel Prado Ugarteche . However, widespread allegations of fraud prompted the Peruvian military to depose Prado and install a military junta, via a coup d'état led by Ricardo Pérez Godoy . Godoy ran a short transitional government and held new elections in 1963, which were won by Fernando Belaúnde Terry who assumed presidency until 1968. Belaúnde
29862-504: The society believed had produced the Great Depression. Milton Friedman , wrote in his early essay "Neo-liberalism and Its Prospects" that "Neo-liberalism would accept the nineteenth-century liberal emphasis on the fundamental importance of the individual, but it would substitute for the nineteenth century goal of laissez-faire as a means to this end, the goal of the competitive order", which requires limited state intervention to "police
30051-423: The split of the viceroyalty and the creation of new viceroyalties of New Granada and Rio de la Plata at the expense of the territories that formed the Viceroyalty of Peru ; this reduced the power, prominence and importance of Lima as the viceroyal capital and shifted the lucrative Andean trade to Buenos Aires and Bogotá , while the fall of the mining and textile production accelerated the progressive decay of
30240-480: The system, establish conditions favorable to competition and prevent monopoly , provide a stable monetary framework , and relieve acute misery and distress." By the 1970s, neoliberal thought—including Friedman's—focused almost exclusively on market liberalization and was adamant in its opposition to nearly all forms of state interference in the economy. One of the earliest and most influential turns to neoliberal reform occurred in Chile after an economic crisis in
30429-517: The term "neoliberal" as an insult or slur used by leftists against liberals and varieties of liberalism that leftists disagree with. British journalist Will Hutton called neoliberal "an unthinking leftist insult" that "stifle[s] debate." On the other hand, many scholars believe it retains a meaningful definition. Writing in The Guardian , Stephen Metcalf posits that the publication of the 2016 IMF paper "Neoliberalism: Oversold?" helps "put to rest
30618-430: The term] reduces its capacity as an analytic frame. If neoliberalism is to serve as a way of understanding the transformation of society over the last few decades, then the concept is in need of unpacking". Historian Daniel Stedman Jones has similarly said that the term "is too often used as a catch-all shorthand for the horrors associated with globalization and recurring financial crises". Several writers have criticized
30807-543: The theories they had developed in the 1930s and 1940s and contributed to West Germany's reconstruction after the Second World War. Erhard was a member of the Mont Pelerin Society and in constant contact with other neoliberals. He pointed out that he is commonly classified as neoliberal and that he accepted this classification. The ordoliberal Freiburg School was more pragmatic. The German neoliberals accepted
30996-418: The tree-line known as puna is home to bushes, cactus , drought-resistant plants such as ichu , and the largest species of bromeliad – the spectacular Puya raimondii . Neoliberal economics Neoliberalism is an economic philosophy that originated among European liberal scholars during the 1930s. It emerged as a response to the perceived decline in popularity of classical liberalism , which
31185-620: The viceroyalty as well as expeditions towards the Amazon Basin as in the case of Spanish efforts to quell Amerindian resistance. The last Inca resistance was suppressed when the Spaniards annihilated the Neo-Inca State in Vilcabamba in 1572. The Indigenous population dramatically collapsed overwhelmingly due to epidemic diseases introduced by the Spanish as well as exploitation and socio-economic change. Viceroy Francisco de Toledo reorganized
31374-565: The war were followed by a period of stability under the Civilista Party , which lasted until the onset of the authoritarian regime of Augusto B. Leguía . The Great Depression caused the downfall of Leguía, renewed political turmoil, and the emergence of the American Popular Revolutionary Alliance (APRA). The rivalry between this organization and a coalition of the elite and the military defined Peruvian politics for
31563-473: The wealth earned between 1990 and 2020 was not distributed throughout the country; living standards showed disparities between the more-developed capital city of Lima and similar coastal regions while rural provinces remained impoverished. Sociologist Maritza Paredes of the Pontifical Catholic University of Peru stated, "People see that all the natural resources are in the countryside but all
31752-506: The working class were reduced. In 1982, Chile again experienced a severe economic recession . The cause of this is contested but most scholars believe the Latin American debt crisis —which swept nearly all of Latin America into financial crisis—was a primary cause. Some scholars argue the neoliberal policies of the Chicago boys heightened the crisis (for instance, percent GDP decrease was higher than in any other Latin American country) or even caused it; for instance, some scholars criticize
31941-648: The world's first test case for 'neoliberal' economics." The turn to neoliberal policies in Chile originated with the Chicago Boys , a select group of Chilean students who, beginning in 1955, were invited to the University of Chicago to pursue postgraduate studies in economics. They studied directly under Milton Friedman and his disciple, Arnold Harberger , and were exposed to Friedrich Hayek . Upon their return to Chile, their neoliberal policy proposals—which centered on widespread deregulation , privatization , reductions to government spending to counter high inflation, and other free-market policies —would remain largely on
32130-573: The world. The term neoliberalism has become increasingly prevalent in recent decades. It has been a significant factor in the proliferation of conservative and right-libertarian organizations, political parties , and think tanks , and predominantly advocated by them. Neoliberalism is often associated with a set of economic liberalization policies, including privatization , deregulation , consumer choice , globalization , free trade , monetarism , austerity , and reductions in government spending . These policies are designed to increase
32319-436: Was a muddle of inconsistent aims. Despite his controversies with the German neoliberals at the Mont Pelerin Society, Ludwig von Mises stated that Erhard and Müller-Armack accomplished a great act of liberalism to restore the German economy and called this "a lesson for the US". According to different research Mises believed that the ordoliberals were hardly better than socialists. As an answer to Hans Hellwig's complaints about
32508-512: Was brought under control. Between 1970 and 1985 the infant mortality rate in Chile fell from 76.1 per 1000 to 22.6 per 1000, the lowest in Latin America. Unemployment from 1980 to 1990 decreased, but remained higher than the South American average (which was stagnant). And despite public perception among Chileans that economic inequality has increased, Chile's Gini coefficient has in fact dropped from 56.2 in 1987 to 46.6 in 2017. While this
32697-423: Was charged with the crime of rebellion. The Boluarte government proved unpopular as she allied herself with the right-wing Congress and the military, betraying her constituents. This resentment led to the 2022–2023 Peruvian political protests , which sought the removal of Boluarte and Congress, immediate general elections and the writing of a new constitution. Authorities responded to the protests violently, with
32886-474: Was destroyed by another flood in January 1934 and a third bridge was completed by Cleveland Bridge & Engineering Company two years later. 11°53′22″S 76°29′15″W / 11.88944°S 76.48750°W / -11.88944; -76.48750 Peru Peru , officially the Republic of Peru , is a country in western South America . It is bordered in the north by Ecuador and Colombia , in
33075-495: Was dogged by insurgent groups, most notably Shining Path, which carried out attacks across the country throughout the 1980s and 1990s. Fujimori cracked down on the insurgents and was successful in largely quelling them by the late 1990s, but the fight was marred by atrocities committed by both the Peruvian security forces and the insurgents: the Barrios Altos massacre and La Cantuta massacre by Government paramilitary groups, and
33264-399: Was employed principally by critics of market reform and laissez-faire capitalism . Scholars tended to associate it with the theories of economists working with the Mont Pelerin Society , including Friedrich Hayek , Milton Friedman , Ludwig von Mises , and James M. Buchanan , along with politicians and policy-makers such as Margaret Thatcher , Ronald Reagan , and Alan Greenspan . Once
33453-663: Was forged during this period, as Bolivarian projects for a Latin American Confederation floundered and a union with Bolivia proved ephemeral. Simón Bolívar launched his campaign from the north, liberating the Viceroyalty of New Granada in the Battles of Carabobo in 1821 and Pichincha a year later. In July 1822, Bolívar and San Martín gathered in the Guayaquil Conference . Bolívar was left in charge of fully liberating Peru while San Martín retired from politics after
33642-543: Was heavily indebted, and political in-fighting was again on the rise. By 1859, some 41,000 Peruvians had died in the constant civil wars that shook the country since 1829. Thanks to the money from the sale of guano, Peru began to modernize with different public works such as railways; the civil and military bureaucracy grew; The indigenous people stopped paying tribute and the slaves achieved their freedom; The migration policy of Germans, Austrians, Irish and Italians began. On April 5, 1879, Chile declared war on Peru, unleashing
33831-413: Was inherently social and did not need to be made so. He hoped that growing prosperity would enable the population to manage much of their social security by self-reliance and end the necessity for a widespread welfare state. By the name of Volkskapitalismus , there were some efforts to foster private savings. Although average contributions to the public old age insurance were quite small, it remained by far
34020-519: Was later established as Bolivia. During the early years of the Republic, endemic struggles for power between military leaders caused political instability. Once independence was proclaimed, San Martín assumed military-political command of the free departments of Peru, under the title of Protector, according to a decree given on August 3, 1821. 74 The works of the Protectorate contributed to the creation of
34209-407: Was marked by the willingness to place humanistic and social values on par with economic efficiency. Alfred Müller-Armack coined the phrase "social market economy" to emphasize the egalitarian and humanistic bent of the idea. According to Boas and Gans-Morse, Walter Eucken stated that "social security and social justice are the greatest concerns of our time". Erhard emphasized that the market
34398-564: Was probably more of a religious than a political phenomenon, with their religious center in Chavín de Huantar . After the decline of the Chavin culture around the beginning of the 1st century CE, a series of localized and specialized cultures rose and fell, both on the coast and in the highlands, during the next thousand years. On the coast, these included the civilizations of the Paracas , Nazca , Wari , and
34587-432: Was recognized for his commitment to the democratic process. On 3 October 1968 another coup d'état led by a group of officers led by General Juan Velasco Alvarado brought the army to power with the aim of applying a doctrine of "social progress and integral development", nationalist and reformist, influenced by the CEPAL theses on dependence and underdevelopment. Six days after the golpe, Velasco proceeded to nationalize
34776-439: Was seen as giving way to a social liberal desire to control markets. This shift in thinking was shaped by the Great Depression and manifested in policies designed to counter the volatility of free markets . One motivation for the development of policies designed to mitigate the volatility of capitalist free markets was a desire to avoid repeating the economic failures of the early 1930s, which have been attributed, in part, to
34965-434: Was sworn in as the new president of Peru after a narrow win in a tightly contested run-off election. That same year, Peru celebrated the bicentenary of independence . Castillo faced multiple impeachment votes during his presidency from the right-wing controlled Congress and on 7 December 2022, just hours before Congress was set to begin a third impeachment effort , Castillo tried to prevent this by attempting to dissolve
35154-399: Was synonymous with both ordoliberalism and social market economy. But over time the original term neoliberalism gradually disappeared since social market economy was a much more positive term and fit better into the Wirtschaftswunder (economic miracle) mentality of the 1950s and 1960s. In the 1980s, numerous governments in Latin America adopted neoliberal policies. Chile was among
35343-498: Was the journalist Charles Peters , who, in 1983, published "A Neoliberal's Manifesto". Historian Elizabeth Shermer argued that the term gained popularity largely among left-leaning academics in the 1970s to "describe and decry a late twentieth-century effort by policymakers, think-tank experts, and industrialists to condemn social-democratic reforms and unapologetically implement free-market policies"; economic historian Phillip W. Magness notes its reemergence in academic literature in
35532-431: Was to be owned by those who cultivated it, and large landowners were expropriated. The only large properties allowed were cooperatives. Between 1969 and 1976, 325,000 families received land from the state with an average size of 73.6 acres (29.8 hectares). The "revolutionary government" also planned massive investments in education, elevated the Quechua language – spoken by nearly half the population but hitherto despised by
35721-580: Was written by Fujimori and his supporters without opposition participation. In spite of human rights progress since the time of insurgency, many problems are still visible and show the continued marginalization of those who suffered through the violence of the Peruvian conflict. A caretaker government presided over by Valentín Paniagua took on the responsibility of conducting new presidential and congressional elections. Afterwards Alejandro Toledo became president in 2001 to 2006. On 28 July 2006, former president Alan García became President of Peru after winning
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