Americas Quarterly - Summer 2009

2006 2008

indigenous people. Peru’s Instituto Nacional de Estadística e Informática reports that the regions with the greatest proportion of indigenous populations are also the ones with the greatest levels of poverty.

Another injustice perceived by poll respondents is that the state does not represent all citizens. The 2008 Latinobarómetro survey reports that only 8 percent of Peruvians, the lowest percentage found among all Latin American nations, believe that the country “is governed for the good of the people” as opposed to being “ governed by some powerful groups for their own benefit.” In contrast, about half the respondents in Uruguay believe their country is governed for the benefit of the people.

Similarly, most Peruvians do not believe that the rule of law is fully established in their country, that public institutions work effectively, or that public services are adequately provided.

The same Latinobarómetro survey asks respondents to place their country on a 1–10 scale, where 1 corresponds to the statement “the state is unable to enforce any laws” and 10 represents “the state is able to enforce all the laws.” While the average on the scale for all surveyed countries is 5. 2, both Peru and Paraguay register an average of 4. 4, the lowest among all nations. Moreover, when asked whether public institutions are doing a good job, only 7 percent of Peruvians respond that that they do a “good” or “very good” job. That is a stark contrast with Peru’s regional neighbors such as Ecuador ( 29 percent), Bolivia ( 14 percent) and Chile ( 21 percent). When asked about satisfaction with public services, both Peru and Paraguay are again the countries with the lowest levels.

Historical Disappointments
inally, another fac-
tor more difficult to
quantify may also
explain the deep
disconnect between
Peruvians and their
political institutions. At key moments
in their history, Peruvians have rallied
behind governments that promised
change, but those early hopes have
always turned into bitter disappoint-
ment. The memories of these unful-
filled hopes clearly linger.
In 1968, General Juan Velasco Al-
varado assumed power as head of a
military junta. His regime enacted a
series of policies that dramatically
altered the economic foundations of
the country. A sweeping land reform
was enacted, the educational system
was reformed, and many foreign com-
panies were nationalized. Similarly,
progressive labor legislation was
introduced and the participation
of the state in the economy greatly
50% 40% 30% 20% 10% 0%
GOOD FAIR BAD

5. 3

8. 5

Given the poor record in improving
incomes, reducing unemployment and
upgrading public services, it is no sur-
prise that most Peruvians have been
critical of the market-oriented poli-
cies launched over a decade ago (and
which presumably account for Peru’s
macroeconomic success). During the
administration of former President

Alberto Fujimori, Peru became one of the most aggressive market reformers in Latin America, privatizing state-held enterprises, lowering tariffs and tightening the public budget.

The 2008 Latinobarómetro survey shows that less than half of Peruvians agree with the statement that “a market economy is the system through which the country can become developed.” In contrast, Paraguayans, who display many of the same critical attitudes toward the political system, exhibit very strong support for market policies (around 75 percent). Those market-oriented policies have continued beyond the Fujimori government, creating a situation in which Peru’s policymakers and economic elites are committed to an economic orientation not shared by the majority of Peruvians.