PERUVIAN ECONOMY: KEY REFORMS OF THE 90’S AND ITS ASSESSMENT

The present work includes four parts, chapter one give us a broader picture of Peru, its main characteristics, and figures. Chapter two shows the precarious situation in which the previous governments, particularly the one of Alan Garcia, former President, had left the country during its first period (1985 - 1990) added to other factors that affected the economy such as the upsurge of terrorism, an out of control inflation, increasing external debt, foreign exchange deficit, among others turned to Peru in one of the countries with highest poverty rates in the region. The third part covers all the implementation process. This series of reforms elaborated by John Williamson in the “Washington Consensus”, envisioned by the World Bank, the IMF and US Treasury Department. In general terms, the reform was based in four aspects: Macroeconomic stabilization, modernization of the economy (two key reforms: deregulation of the market and the establishment of a minimum State), international and financial reintegration and recovery of public safety: Rule of Law framework. The fourth part is an assessment of the results of the implementation, which has created two sides of the coin: one is an outstanding macroeconomic performance, prospects of growth, a friendly investment environment and continuously reducing poverty in the country. However, there are criticisms problems including corruption and bureaucracy, health and education services under performing and the gap between richer and poorer becoming broader.