Fujimori's Privatization Programs
   HOME

TheInfoList



OR:

Alberto Fujimori Alberto Kenji Fujimori Fujimori (26 July 1938 – 11 September 2024) was a Peruvian politician, professor, and engineer who served as the 54th president of Peru from 1990 to 2000.* * * * * * * Born in Lima, Fujimori was the country's fir ...
served as the 54th
President of Peru The president of Peru (), officially the constitutional president of the Republic of Peru (), is the head of state and head of government of Peru. The president is the head of the executive branch and is the supreme head of the Peruvian Armed ...
from 28 July 1990 to 22 November 2000. A controversial figure, Fujimori has been credited with the creation of
Fujimorism Fujimorism (, , Hepburn romanization, Hepburn: ) is the policies and the List of political ideologies, political ideology of former President of Peru, President of Peru Alberto Fujimori as well as the personality cult built around him, his polici ...
, defeating the
Shining Path The Shining Path (, SL), self-named the Communist Party of Peru (, abbr. PCP), is a far-left political party and guerrilla group in Peru, following Marxism–Leninism–Maoism and Gonzalo Thought. Academics often refer to the group as the ...
insurgency in Peru and restoring its
macroeconomic Macroeconomics is a branch of economics that deals with the performance, structure, behavior, and decision-making of an economy as a whole. This includes regional, national, and global economies. Macroeconomists study topics such as output/ GDP ...
stability. However, he was criticized for his
authoritarian Authoritarianism is a political system characterized by the rejection of political plurality, the use of strong central power to preserve the political ''status quo'', and reductions in democracy, separation of powers, civil liberties, and ...
way of ruling the country (especially after 1992) and was accused of human rights violations. Even amid his prosecution in 2008 for
crimes against humanity Crimes against humanity are certain serious crimes committed as part of a large-scale attack against civilians. Unlike war crimes, crimes against humanity can be committed during both peace and war and against a state's own nationals as well as ...
relating to his presidency, two-thirds of Peruvians polled voiced approval for his leadership in that period. Fujimori's economic policy was largely adopted from the advice of Peruvian economist
Hernando de Soto Hernando de Soto (; ; 1497 – 21 May 1542) was a Spanish explorer and conquistador who was involved in expeditions in Nicaragua and the Yucatan Peninsula. He played an important role in Francisco Pizarro's conquest of the Inca Empire in Peru, ...
, who prescribed economic guidelines – including the loosening of
economic regulation Regulatory economics is the application of law by government or regulatory agencies for various economics-related purposes, including remedying market failure, protecting the environment and economic management. Regulation Regulation is gener ...
, the introduction of
austerity In economic policy, austerity is a set of Political economy, political-economic policies that aim to reduce government budget deficits through Government spending, spending cuts, tax increases, or a combination of both. There are three prim ...
measures and the utilization of neoliberal policies – that were ultimately adopted by the Fujimori administration and established in the 1993 Constitution of Peru. The policies utilized by de Soto and Fujimori resulted with increased misery for poor Peruvians as de Soto's prescribed "Fujishock" caused increased prices and little change to the poverty rate. Eventually, the policies resulted in Peru becoming macro-economically stable and gave way to the strongest surge in economic growth in Peru following the period of price controls and increased regulation established during the
Lost Decade Lost Decade may refer to: * Lost Decade (Peru), the economic, political and social crisis that took place in Peru in the 1980s * Lost Decades, an economic crisis in Japan that began in the 1990s * ''The Lost Decade'', a television series broadcast ...
.


Background

A
dark horse A dark horse is a previously lesser-known person, team or thing that emerges to prominence in a situation, especially in a competition involving multiple rivals, that is unlikely to succeed but has a fighting chance, unlike the underdog who is exp ...
candidate, Fujimori won the 1990 presidential election under the banner of the new party ''
Cambio 90 Cambio 90 (lit. ''Change 90'', C90) was a Peruvian right-wing political party which entered the political spectrum in early 1990, and throughout the 1990s until late-2000 was the most powerful political party in Peru alongside New Majority (Per ...
'' ("cambio" meaning "change"), beating world-renowned writer
Mario Vargas Llosa Jorge Mario Pedro Vargas Llosa, 1st Marquess of Vargas Llosa (28 March 1936 – 13 April 2025) was a Peruvian novelist, journalist, essayist and politician. Vargas Llosa was one of the most significant Latin American novelists and essayists a ...
in a surprising upset. He capitalized on profound disenchantment with previous president
Alan García Alan Gabriel Ludwig García Pérez (; 23 May 1949 – 17 April 2019) was a Peruvian politician who served as President of Peru for two non-consecutive terms from 1985 to 1990 and from 2006 to 2011. He was the second leader of the American Popula ...
and his
American Popular Revolutionary Alliance The Peruvian Aprista Party (, PAP) () is a Peruvian social-democratic political party and a member of the Socialist International. The party was founded as the American Popular Revolutionary Alliance (, APRA) by Víctor Raúl Haya de la Tor ...
party (APRA). He exploited popular distrust of Vargas Llosa's identification with the existing Peruvian political establishment, and uncertainty about Vargas Llosa's plans for
neoliberal Neoliberalism is a political and economic ideology that advocates for free-market capitalism, which became dominant in policy-making from the late 20th century onward. The term has multiple, competing definitions, and is most often used pej ...
economic reforms. Fujimori won much support from the poor, who had been frightened by Vargas Llosa's austerity proposals. During the campaign, Fujimori was nicknamed ''El Chino'', which roughly translates to "
Chinaman ''Chinaman'' () is an offensive term referring to a Chinese man or person, or widely a person native to geographical East Asia or of perceived East Asian ethnicity. The term is noted as having pejorative overtones by modern dictionaries. Its ...
"; it is common for people of any East Asian descent to be called ''chino'' in Peru, as elsewhere in Latin America, both derogatively and affectionately. Although he is of Japanese heritage, Fujimori has suggested that he was always gladdened by the term, which he perceived as a term of affection. With his election victory, he became the first person of
East Asia East Asia is a geocultural region of Asia. It includes China, Japan, Mongolia, North Korea, South Korea, and Taiwan, plus two special administrative regions of China, Hong Kong and Macau. The economies of Economy of China, China, Economy of Ja ...
n descent to become
head of government In the Executive (government), executive branch, the head of government is the highest or the second-highest official of a sovereign state, a federated state, or a self-governing colony, autonomous region, or other government who often presid ...
of a Latin American nation, and just the third of East Asian descent to govern a South American state, after
Arthur Chung Arthur Raymond Chung (10 January 1918 – 23 June 2008) was a Guyanese politician who served as the first president of Guyana from 17 March 1970 to 6 October 1980.
of
Guyana Guyana, officially the Co-operative Republic of Guyana, is a country on the northern coast of South America, part of the historic British West Indies. entry "Guyana" Georgetown, Guyana, Georgetown is the capital of Guyana and is also the co ...
and
Henk Chin A Sen Hendrik Rudolf "Henk" Chin A Sen (; pinyin: ''Chén Yàxiān''; 18 January 1934 – 11 August 1999) was a Surinamese politician who served as the President of Suriname from 15 August 1980 until 4 February 1982. Biography Chin A Sen was born ...
of
Suriname Suriname, officially the Republic of Suriname, is a country in northern South America, also considered as part of the Caribbean and the West Indies. It is a developing country with a Human Development Index, high level of human development; i ...
(each of whom had served as
head of state A head of state is the public persona of a sovereign state.#Foakes, Foakes, pp. 110–11 "
he head of state He or HE may refer to: Language * He (letter), the fifth letter of the Semitic abjads * He (pronoun), a pronoun in Modern English * He (kana), one of the Japanese kana (へ in hiragana and ヘ in katakana) * Ge (Cyrillic), a Cyrillic letter cal ...
being an embodiment of the State itself or representative of its international persona." The name given to the office of head of sta ...
, rather than head of government).


First term: 28 July 1990 – 28 July 1995


Fujishock

During his first term in office, Fujimori enacted wide-ranging neoliberal reforms, known as ''Fujishock''. During the presidency of
Alan García Alan Gabriel Ludwig García Pérez (; 23 May 1949 – 17 April 2019) was a Peruvian politician who served as President of Peru for two non-consecutive terms from 1985 to 1990 and from 2006 to 2011. He was the second leader of the American Popula ...
, the economy had entered a period of hyperinflation and the political system was in crisis due to the country's internal conflict, leaving Peru in "economic and political chaos".Benson, Sara and Hellander, Paul and Wlodarski, Rafael. ''
Lonely Planet Lonely Planet is a travel guide book publisher. Founded in Australia in 1973, the company has printed over 150 million books. History 20th century Lonely Planet was founded by married couple Maureen Wheeler, Maureen and Tony Wheeler. In 19 ...
: Peru''. 2007, pages 37–8.
It was Fujimori's objective to pacify the nation and restore economic balance. This program bore little resemblance to his campaign platform and was in fact more drastic than anything Vargas Llosa had proposed.Gouge, Thomas. ''Exodus from Capitalism: The End of Inflation and Debt''. 2003, page 363. Nonetheless, the ''Fujishock'' succeeded in restoring Peru to the global economy, though not without immediate social cost.Manzetti, Luigi. ''Privatization South American Style''. 1999, page 235. The immediate target of the first Fujimori Administration, was to stop the runaway course of inflation. Beyond that, the goals included repudiating protection and import substitution, returning to full participation in the world trading and financial systems, eliminating domestic price controls and subsidies, raising public revenue and holding government spending strictly to the levels of current revenue, initiating a social emergency program to reduce the shock of adjustment for the poor, and devoting a higher share of the country's resources to rural investment and correction of the causes of rural poverty. In practice, new measures came out in bits and pieces, dominated by immediate concern to stop inflation; actions taken in the first year did not complete the program. Reforms have permitted an economic growth since 1993, except for a slump after the
1997 Asian financial crisis The 1997 Asian financial crisis gripped much of East Asia, East and Southeast Asia during the late 1990s. The crisis began in Thailand in July 1997 before spreading to several other countries with a ripple effect, raising fears of a worldwide eco ...
. Fujimori's initiative relaxed private sector
price controls Price controls are restrictions set in place and enforced by governments, on the prices that can be charged for goods and services in a market. The intent behind implementing such controls can stem from the desire to maintain affordability of go ...
, drastically reduced government subsidies and government employment, eliminated all exchange controls, and also reduced restrictions on investment, imports, and capital flow. Tariffs were radically simplified, the minimum wage was immediately quadrupled, and the government established a $400 million poverty relief fund. The latter measure seemed to anticipate the economic agony that was to come, as electricity costs quintupled, water prices rose eightfold, and gasoline prices rose 3000%. The
IMF The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution funded by 191 member countries, with headquarters in Washington, D.C. It is regarded as the global lender of la ...
was impressed by these measures, and guaranteed loan funding for Peru.Gouge, Thomas. ''Exodus from Capitalism: The End of Inflation and Debt''. 2003, page 364. Inflation began to fall rapidly and foreign investment capital flooded in. Fujimori's
privatization Privatization (rendered privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation w ...
campaign featured the selling off of hundreds of state-owned enterprises, and the replacing of the country's troubled currency, the
inti Inti is the ancient Inca mythology, Inca solar deity, sun god. He is revered as the national Tutelary deity, patron of the Inca state. Although most consider Inti the sun god, he is more appropriately viewed as a cluster of solar aspects, since t ...
, with the
Nuevo Sol The sol (; plural: soles; currency sign: S/) is the currency of Peru; it is subdivided into 100 ''céntimos'' ("cents"). The ISO 4217 currency code is PEN. The sol replaced the Peruvian inti in 1991 and the name is a return to that of Peru's hi ...
. The ''Fujishock'' restored
macroeconomic Macroeconomics is a branch of economics that deals with the performance, structure, behavior, and decision-making of an economy as a whole. This includes regional, national, and global economies. Macroeconomists study topics such as output/ GDP ...
stability to the economy and triggered a considerable long-term economic upturn in the mid-1990s. Stokes, Susan Carol. ''Public Support for Market Reforms in New Democracies''. 2001, page 163. In 1994, the Peruvian economy grew at a rate of 13%, faster than any other economy in the world.


1992 Peruvian coup d'état

During Fujimori's first term in office, APRA and Vargas Llosa's party, FREDEMO, remained in control of both chambers of Congress (the
Chamber of Deputies The chamber of deputies is the lower house in many bicameral legislatures and the sole house in some unicameral legislatures. Description Historically, French Chamber of Deputies was the lower house of the French Parliament during the Bourb ...
and
Senate A senate is a deliberative assembly, often the upper house or chamber of a bicameral legislature. The name comes from the ancient Roman Senate (Latin: ''Senatus''), so-called as an assembly of the senior (Latin: ''senex'' meaning "the el ...
), hampering the government's ability to enact economic reforms. Fujimori also found it difficult to combat the threat posed by the
Maoist Maoism, officially Mao Zedong Thought, is a variety of Marxism–Leninism that Mao Zedong developed while trying to realize a socialist revolution in the agricultural, pre-industrial society of the Republic of China (1912–1949), Republic o ...
guerrilla organization
Shining Path The Shining Path (, SL), self-named the Communist Party of Peru (, abbr. PCP), is a far-left political party and guerrilla group in Peru, following Marxism–Leninism–Maoism and Gonzalo Thought. Academics often refer to the group as the ...
(), due largely to what he perceived to be the intransigence and obstructionism of Congress. By March 1992, Congress met with the approval of only 17% of the electorate, according to one poll (the presidency stood at 42%, in the same poll).Smith, Peter H. ''Latin America in Comparative Perspective: New Approaches to Methods and Analysis''. 1995, page 234. In response to the
political deadlock In politics, gridlock or deadlock or political stalemate is a situation when there is difficulty passing laws that satisfy the needs of the people. A government is gridlocked when the ratio between bills passed and the agenda of the legislatur ...
, on 5 April 1992, Fujimori with the support of the military carried out a presidential coup, also known as the ''autogolpe'' (auto-coup or self-coup) or ''Fujigolpe'' (Fuji-coup) in Peru. He shut down Congress, suspended the constitution, and purged the judiciary. The coup was welcomed by the public, according to numerous polls.Smith, Peter H. ''Latin America in Comparative Perspective: New Approaches to Methods and Analysis''. 1995, page 236. Not only was the coup itself marked by favorable public opinion in several independent polls, but also public approval of the Fujimori administration jumped significantly in the wake of the coup.Barry S. Levitt. 2006 "A desultory defense of democracy: OAS Resolution 1080 and the Inter-American Democratic Charter. (Organization of American States)." Latin American Politics and Society 48(3):93–123. Fujimori often cited this public support in defending the coup, which he characterized as "not a negation of real democracy, but on the contrary… a search for an authentic transformation to assure a legitimate and effective democracy." Fujimori believed that Peruvian democracy had been nothing more than "a deceptive formality – a facade"; he claimed the coup was necessary to break with the deeply entrenched special interests that were hindering him from rescuing Peru from the chaotic state in which García had left it. Fujimori's coup was immediately met with the near-unanimous condemnation by the international community. The
Organization of American States The Organization of American States (OAS or OEA; ; ; ) is an international organization founded on 30 April 1948 to promote cooperation among its member states within the Americas. Headquartered in Washington, D.C., United States, the OAS is ...
denounced the coup and demanded a return to "
representative democracy Representative democracy, also known as indirect democracy or electoral democracy, is a type of democracy where elected delegates represent a group of people, in contrast to direct democracy. Nearly all modern Western-style democracies func ...
",Smith, Peter H. ''Latin America in Comparative Perspective: New Approaches to Methods and Analysis''. 1995, page 238. despite Fujimori's claims that his coup represented a "popular uprising". Various foreign ministers of OAS member states reiterated this condemnation of the ''autogolpe''. They proposed an urgent effort to promote the re-establishment of "the democratic institutional order" in Peru. Following negotiations involving the OAS, the government, and opposition groups, Alberto Fujimori's initial response was to hold a referendum to ratify the auto-coup, which the OAS rejected. Fujimori then proposed scheduling elections for a Democratic Constituent Congress (CCD), which would be charged with drafting a new constitution, to be ratified by a national referendum. Despite the lack of consensus among political forces in Peru regarding this proposal, the ''ad hoc'' OAS meeting of ministers nevertheless approved Fujimori's offer in mid-May, and elections for the CCD were held on 22 November 1992. Various states acted to condemn the coup individually.
Venezuela Venezuela, officially the Bolivarian Republic of Venezuela, is a country on the northern coast of South America, consisting of a continental landmass and many Federal Dependencies of Venezuela, islands and islets in the Caribbean Sea. It com ...
broke off diplomatic relations, and
Argentina Argentina, officially the Argentine Republic, is a country in the southern half of South America. It covers an area of , making it the List of South American countries by area, second-largest country in South America after Brazil, the fourt ...
withdrew its ambassador.
Chile Chile, officially the Republic of Chile, is a country in western South America. It is the southernmost country in the world and the closest to Antarctica, stretching along a narrow strip of land between the Andes, Andes Mountains and the Paci ...
joined
Argentina Argentina, officially the Argentine Republic, is a country in the southern half of South America. It covers an area of , making it the List of South American countries by area, second-largest country in South America after Brazil, the fourt ...
in requesting that Peru be suspended from the
Organization of American States The Organization of American States (OAS or OEA; ; ; ) is an international organization founded on 30 April 1948 to promote cooperation among its member states within the Americas. Headquartered in Washington, D.C., United States, the OAS is ...
. International financiers delayed planned or projected loans, and the United States, Germany and Spain suspended all non-humanitarian aid to Peru. The coup appeared to threaten the economic recovery strategy of reinsertion, and complicated the process of clearing arrears with the
International Monetary Fund The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution funded by 191 member countries, with headquarters in Washington, D.C. It is regarded as the global lender of las ...
. Whereas Peruvian–U.S. relations early in Fujimori's presidency had been dominated by questions of
coca eradication Coca is any of the four cultivated plants in the family Erythroxylaceae, native to western South America. Coca is known worldwide for its psychoactive alkaloid, cocaine. Coca leaves contain cocaine which acts as a mild stimulant when chewed or ...
, Fujimori's ''autogolpe'' immediately became a major obstacle to international relations, as the United States immediately suspended all military and economic aid to Peru, with exceptions for counter-narcotic and humanitarian-related funds.


Post-coup period

With FREDEMO dissolved and APRA's leader,
Alan García Alan Gabriel Ludwig García Pérez (; 23 May 1949 – 17 April 2019) was a Peruvian politician who served as President of Peru for two non-consecutive terms from 1985 to 1990 and from 2006 to 2011. He was the second leader of the American Popula ...
, exiled to
Colombia Colombia, officially the Republic of Colombia, is a country primarily located in South America with Insular region of Colombia, insular regions in North America. The Colombian mainland is bordered by the Caribbean Sea to the north, Venezuel ...
, Fujimori sought to legitimize his position. He called elections for a
Democratic Constitutional Congress The Democratic Constituent Congress (Spanish: ''Congreso Constituyente Democrático'') was a Constituent Assembly created in Peru after the dissolution of Congress by President Alberto Fujimori in 1992. Its main purpose was to amend the Constitu ...
that would serve as a legislature and a
constituent assembly A constituent assembly (also known as a constitutional convention, constitutional congress, or constitutional assembly) is a body assembled for the purpose of drafting or revising a constitution. Members of a constituent assembly may be elected b ...
. While APRA and Popular Action attempted to boycott this, the Popular Christian Party (PPC, not to be confused with PCP Partido Comunista del Peru) and many left-leaning parties participated in this election. His supporters won a majority in this body, and drafted a new constitution in 1993. A referendum was scheduled, and the coup and the Constitution of 1993 were approved by a narrow margin of between four and five percent. Later in the year, on 13 November, there was a failed military coup, led by General
Jaime Salinas Sedó Jaime is a common Spanish and Portuguese male given name for Jacob (name), James (name), Jamie, or Jacques. In Occitania Jacobus became ''Jacome'' and later ''Jacme''. In east Spain, ''Jacme'' became ''Jaime'', in Aragon it became ''Chaime'', and i ...
. Salinas asserted that his efforts were a matter of turning Fujimori over for trial, for violating the Peruvian constitution. In 1994, Fujimori separated from his wife
Susana Higuchi Susana Shizuko Higuchi Miyagawa (, , Hepburn: , ; 26 April 1950 – 8 December 2021) was a Peruvian politician and engineer. She served as First Lady of Peru from 1990 to 1994 as the wife of President Alberto Fujimori. In 1994, she described ...
in a noisy, public divorce. He formally stripped her of the title First Lady in August 1994, appointing their elder daughter First Lady in her stead. Higuchi publicly denounced Fujimori as a "tyrant" and claimed that his administration was corrupt. They formally divorced in 1995.


Second term: 28 July 1995 – 28 July 2000

The 1993 Constitution allowed Fujimori to run for a second term, and in April 1995, at the height of his popularity, Fujimori easily won reelection with almost two-thirds of the vote. His major opponent, former
Secretary-General of the United Nations The secretary-general of the United Nations (UNSG or UNSECGEN) is the chief administrative officer of the United Nations and head of the United Nations Secretariat, one of the United Nations System#Six principal organs, six principal organs of ...
Javier Pérez de Cuéllar Javier Felipe Ricardo Pérez de Cuéllar de la Guerra ( , ; 19 January 1920 – 4 March 2020) was a Peruvian diplomat and politician who served as the fifth secretary-general of the United Nations from 1982 to 1991. He later served as prime min ...
, won only 22 percent of the vote. Fujimori's supporters won comfortable majorities in the legislature. One of the first acts of the new congress was to declare an amnesty for all members of the Peruvian military or police accused or convicted of human rights abuses between 1980 and 1995. During his second term, Fujimori signed a peace agreement with
Ecuador Ecuador, officially the Republic of Ecuador, is a country in northwestern South America, bordered by Colombia on the north, Peru on the east and south, and the Pacific Ocean on the west. It also includes the Galápagos Province which contain ...
over a
border dispute A territorial dispute or boundary dispute is a disagreement over the possession or control of territories (land, water or airspace) between two or more political entities. Context and definitions Territorial disputes are often related to the ...
that had simmered for more than a century. The treaty allowed the two countries to obtain international funds for developing the border region. Fujimori also settled some unresolved issues with Chile, Peru's southern neighbor, outstanding since the Treaty of Lima of 1929. The 1995 election was the turning point in Fujimori's career. Peruvians now began to be more concerned about freedom of speech and the press. However, before he was sworn in for a second term, Fujimori stripped two universities of their autonomy and reshuffled the national electoral board. This led his opponents to call him "Chinochet," a reference to his previous nickname and to
Chile Chile, officially the Republic of Chile, is a country in western South America. It is the southernmost country in the world and the closest to Antarctica, stretching along a narrow strip of land between the Andes, Andes Mountains and the Paci ...
an ruler
Augusto Pinochet Augusto José Ramón Pinochet Ugarte (25 November 1915 – 10 December 2006) was a Chilean military officer and politician who was the dictator of Military dictatorship of Chile, Chile from 1973 to 1990. From 1973 to 1981, he was the leader ...
. According to a poll by the Peruvian Research and Marketing Company conducted in 1997, 40.6% of Lima residents considered President Fujimori an authoritarian. High growth during Fujimori's first term petered out during his second term. "
El Niño EL, El or el may refer to: Arts and entertainment Fictional entities * El, a character from the manga series ''Shugo Chara!'' by Peach-Pit * Eleven (''Stranger Things'') (El), a fictional character in the TV series ''Stranger Things'' * El, fami ...
" phenomena had a tremendous impact on the Peruvian economy during the late 1990s. Nevertheless, total GDP growth between 1992 and 2001, inclusive, was 44.60%, that is, 3.76% per annum; total GDP per capita growth between 1991 and 2001, inclusive, was 30.78%, that is, 2.47% per annum. Also, studies by INEI, the national statistics bureau show that the number of Peruvians living in poverty increased dramatically (from 41.6% to more than 70%) during Alan García's term, but they actually decreased (from more than 70% to 54%) during Fujimori's term. Furthermore, FAO reported Peru reduced undernourishment by about 29% from 1990 to 1992 to 1997–99. Peru was reintegrated into the global economic system, and began to attract foreign investment. The sell-off of state-owned enterprises led to improvements in some service industries, notably local telephony, mobile telephony and Internet. For example, before privatization, a consumer or business would need to wait up to 10 years to get a local telephone line installed from the monopolistic state-run telephone company, at a cost of $607 for a residential line. A couple of years after privatization, the wait was reduced to just a few days. Peru's Physical land based telephone network had a dramatic increase in telephone penetration from 2.9% in 1993 to 5.9% in 1996 and 6.2% in 2000, and a dramatic decrease in the wait for a telephone line. Average wait went from 70 months in 1993 (before privatization) to two months in 1996 (after privatization). Privatization also generated foreign investment in export-oriented activities such as mining and energy extraction, notably the
Camisea gas project The Camisea Gas Project extracts and transports natural gas originating near the Urubamba River in Megantoni District, La Convención Province in the Cusco Region of Peru. The project, which cost nearly four billion dollars by 2015, developed in ...
and the copper and
zinc Zinc is a chemical element; it has symbol Zn and atomic number 30. It is a slightly brittle metal at room temperature and has a shiny-greyish appearance when oxidation is removed. It is the first element in group 12 (IIB) of the periodic tabl ...
extraction projects at Antamina. By the end of the decade, Peru's international currency reserves were built up from nearly zero at the end of García's term to almost US$10 billion. Economic improvement led to the revival of tourism, agroexport, industries and fisheries. In addition to the nature of democracy under Fujimori, Peruvians were becoming increasingly interested in the myriad criminal allegations involving Fujimori and his chief of the National Intelligence Service,
Vladimiro Montesinos Vladimiro Lenin Ilich Montesinos Torres (; born May 20, 1945) is a Peruvian former intelligence officer and lawyer, most notorious for his role as the head of Peru's National Intelligence Service (SIN) during the presidency of Alberto Fujimor ...
. A 2002 report by Health Minister Fernando Carbone would later suggest that Fujimori was involved in the forced sterilizations of up to 300,000 indigenous women from 1996 to 2000, as part of a population control program. A 2004
World Bank The World Bank is an international financial institution that provides loans and Grant (money), grants to the governments of Least developed countries, low- and Developing country, middle-income countries for the purposes of economic development ...
publication would suggest that, in this period, Montesinos' abuse of the power accorded him by Fujimori "led to a steady and systematic undermining of the rule of law".


Third term: 28 July – 17 November 2000

The 1993 constitution limits a presidency to two terms. Shortly after Fujimori began his second term, his supporters in Congress passed a law of "authentic interpretation" which effectively allowed him to run for another term in 2000. A 1998 effort to repeal this law by referendum failed. In late 1999, Fujimori announced that he would run for a third term. Peruvian electoral bodies, which were politically sympathetic to Fujimori, accepted his argument that the two-term restriction did not apply to him, as it was enacted while he was already in office. Exit polls showed Fujimori fell short of the 50% required to avoid an electoral runoff, but the first official results showed him with 49.6% of the vote, just short of outright victory. Eventually, Fujimori was credited with 49.89%—20,000 votes short of avoiding a runoff. Despite reports of numerous irregularities, the international observers recognized an adjusted victory of Fujimori. His primary opponent,
Alejandro Toledo Alejandro Celestino Toledo Manrique (; born 28 March 1946) is a Peruvian former politician who served as President of Peru, from 2001 to 2006. He gained international prominence after leading the opposition against president Alberto Fujimori, w ...
, called for his supporters to spoil their ballots in the runoff by writing "No to fraud!" on them (voting is mandatory in Peru). International observers pulled out of the country after Fujimori refused to delay the runoff. In the runoff, Fujimori won with 51.1% of the valid votes. While votes for Toledo declined from 40.24% of the valid votes cast in the first round to 25.67% of the valid votes in the second round, invalid votes jumped from 2.25% of the total votes cast in the first round to 29.93% of total votes in the second round. The large percentage of votes cast as invalid suggested that many Peruvians took Toledo's advice to spoil their ballots. (The 51.1 and 25 figures are as percentages of valid votes, that is, excluding invalid votes. Thus, there were 29.93% invalid votes and 70.07% valid votes. Of this 70.07%, 51.1% were for Fujimori and 25.67% for Toledo.) Although Fujimori had won the runoff with only a bare majority, rumors of irregularities led most of the international community to shun his third swearing-in on 28 July. For the next seven weeks, there were daily demonstrations in front of the presidential palace. As a conciliatory measure, Fujimori appointed former opposition candidate Federico Salas as the new prime minister. However, opposition parties in Parliament refused to support this move while Toledo campaigned vigorously to have the election annulled. At this point, a corruption scandal involving Vladimiro Montesinos broke out, and exploded into full force on the evening of 14 September 2000, when the cable television station
Canal N Canal N a Peruvian pay television news channel news channel. It was founded as a joint venture between El Comercio and Telefónica. The channel is exclusively available through Movistar TV. Although CCN and Cable Mágico Noticias were the f ...
broadcast footage of Montesinos apparently bribing opposition congressman Alberto Kouri for his defection to Fujimori's ''Perú 2000'' party. This video was presented by Fernando Olivera, leader of the FIM (Independent Moralizing Front), who purchased it from one of Montesinos's closest allies (nicknamed by the Peruvian press ''El Patriota''). Fujimori's support virtually collapsed, and a few days later he announced in a nationwide address that he would shut down the SIN and call new elections—in which he would not be a candidate. On 10 November, Fujimori won approval from Congress to hold elections on 8 April 2001. On 13 November, Fujimori left Peru for a visit to
Brunei Brunei, officially Brunei Darussalam, is a country in Southeast Asia, situated on the northern coast of the island of Borneo. Apart from its coastline on the South China Sea, it is completely surrounded by the Malaysian state of Sarawak, with ...
to attend the Asia-Pacific Economic Cooperation forum. On 16 November,
Valentín Paniagua Valentín Toribio Demetrio Agustin Paniagua Corazao (23 September 1936 – 16 October 2006) was a Peruvian lawyer and politician who briefly served as 55th President of Peru from 2000 to 2001. Elected President of Congress on 16 November 2000, ...
took over as president of Congress after the pro-Fujimori leadership lost a vote of confidence. On 17 November, Fujimori traveled from Brunei to Tokyo, where he submitted his presidential
resignation Resignation is the formal act of relinquishing or vacating one's office or position. A resignation can occur when a person holding a position gained by election or appointment steps down, but leaving a position upon the expiration of a term, or ...
via fax. The Peruvian Congress refused to accept his resignation, voting instead 62 yea –9 nay to remove Fujimori from the office of the president of Peru on the grounds that he was "permanently morally disabled." On November 19, Fujimori's government ministers presented their resignations en masse. Because Fujimori's first vice president, Francisco Tudela, had resigned a few days earlier, his successor Ricardo Márquez was called the new president. Congress, however, refused to recognize him, as he was an ardent Fujimori loyalist; Márquez resigned two days later. Paniagua was voted by the Peruvian Congress as the next in line, and became interim president to oversee the April elections.


Reception


Criticism

Detractors have observed that Fujimori was able to encourage large-scale mining projects with foreign corporations and push through mining-friendly legislation laws because the post auto-coup political picture greatly facilitated the process. Some analysts state that some of the GDP growth during the Fujimori years reflects a greater rate of extraction of non-renewable resources by transnational companies; these companies were attracted by Fujimori by means of near-zero royalties, and, by the same fact, little of the extracted wealth has stayed in the country. Peru's mining legislation, they claim, has served as a role model for other countries that wish to become more mining-friendly. Fujimori's privatization program also remains shrouded in controversy. A congressional investigation in 2002, led by socialist opposition congressman
Javier Diez Canseco Javier Diez Canseco Cisneros (24 March 1948 – 4 May 2013) was a Peruvian politician and member of the Peruvian Congress representing the Socialist Party of Peru (PS), of which he was a founding member and also served as its Party President. ...
, stated that of the US$9 billion raised through the privatizations of hundreds of state-owned enterprises, only a small fraction of this income ever benefited the Peruvian people. The one instance of
organised labour The labour movement is the collective organisation of working people to further their shared political and economic interests. It consists of the trade union or labour union movement, as well as political parties of labour. It can be considere ...
's success in impeding reforms, namely the teachers' union resistance to education reform, was based on traditional methods of organisation and resistance: strikes and
street demonstrations A political demonstration is an action by a mass group or collection of groups of people in favor of a political or other cause or people partaking in a protest against a cause of concern; it often consists of walking in a mass march formati ...
. Some scholars claim that Fujimori's government became a "dictatorship" after the auto-coup, permeated by a network of corruption organized by his associate Montesinos, who now faces dozens of charges that range from
embezzlement Embezzlement (from Anglo-Norman, from Old French ''besillier'' ("to torment, etc."), of unknown origin) is a type of financial crime, usually involving theft of money from a business or employer. It often involves a trusted individual taking ...
to drug trafficking to murder (Montesinos is currently on trial in Lima). Fujimori's style of government has also been described as "populist authoritarianism". Numerous governments and human rights organizations such as
Amnesty International Amnesty International (also referred to as Amnesty or AI) is an international non-governmental organization focused on human rights, with its headquarters in the United Kingdom. The organization says that it has more than ten million members a ...
, have welcomed the extradition of Fujimori to face human rights charges. As early as 1991, Fujimori had himself vocally denounced what he called "pseudo-human rights organizations" such as Amnesty International and
Americas Watch Human Rights Watch (HRW) is an international non-governmental organization that conducts research and advocacy on human rights. Headquartered in New York City, the group investigates and reports on issues including war crimes, crimes against ...
, for allegedly failing to criticize the insurgencies targeting civilian populations throughout Peru against which his government was struggling. In the 2004 Global Transparency Report, Fujimori made into the list of the World's Most Corrupt Leaders. He was listed seventh and he was said to have amassed $600 million.


Popular support

Fujimori still enjoys a measure of support within Peru. A poll conducted in March 2005 by the Instituto de Desarrollo e Investigación de Ciencias Económicas (IDICE) indicated that 12.1% of the respondents intended to vote for Fujimori in the 2006 presidential election. A poll conducted on 25 November 2005, by the Universidad de Lima indicated a high approval (45.6%) rating of the Fujimori period between 1990 and 2000, attributed to his counterinsurgency efforts (53%). According to a more recent
Universidad de Lima The University of Lima (; ; ) is a private nonprofit university in Lima, Peru. It was founded in 1962. The decision to create the University of Lima was made in the early 1960s by a group of university professors, along with commerce and ind ...
survey, Fujimori still retains public support, ranking fifth in personal popularity among other political figures. Popular approval for his decade-long presidency (1990–2000) has reportedly grown (from 31.5% in 2002 to 49.5% in May 2007). Despite accusations of corruption and human rights violations, nearly half of the individuals interviewed in the survey approved of Fujimori's presidential regime. In a 2007
Universidad de Lima The University of Lima (; ; ) is a private nonprofit university in Lima, Peru. It was founded in 1962. The decision to create the University of Lima was made in the early 1960s by a group of university professors, along with commerce and ind ...
survey of 600 Peruvians in Lima and the port of Callao, 82.6% agreed that the former president should be extradited from Chile to stand trial in Peru. During his campaign, Alejandro Toledo promised Peruvians higher wages, a fight against poverty, anti-corruption measures, higher pensions, more employment, military reform, development of tourism, and industrialization. As Peru's top economist Pedro Pablo Kuczynski noted “Toledo comes after almost 30 years of either dictatorships or governments that weren't so democratic. People expect Toledo to solve all the problems of the last 30 years, which included an enormous increase in relative poverty."Pedro-Pablo Kuczynski.
''Newsweek''. 28 Feb., 2005. Retrieved 27 June 2011.
Toledo's inability to fulfill many of these promises created widespread dissatisfaction. His approval ratings were consistently low throughout his presidency, sometimes sinking into single digits.


References

{{Reflist Economic policy in South America Fujimorism Privatization in Peru 1990s in Peru Economic history of Peru 1990s in economic history Economic liberalization