Peru Economy

In 1954 Peru became the first Latin American county to receive a Stand-by Arraignment with the IMF. Since this time Peru been supported by 24 IMF programs. However, not all of these IMF programs were successfully accomplished.

Prior to 1980 Peru was under the rule of two military regimes. In 1980 President Fernando Belaunde Terry, was elected into office. During his presidency his administration failed to design efficient policies and take action to stem guerrilla group activities within the country’s borders. These failures contributed to the country’s economic collapse. After Peru’s economy collapsed a member of the American Popular Revolutionary Alliance Party (APRA) named Alan Garcia was elected president. Alan Garcia put reforms and an
Peru developed a poorly designed macroeconomic system that did not produce tangible investments and encouraged bribes to public officials, as well as the creation of informal economic systems and firms designed by its citizens in separate communities. These informal systems and firms found that in order for them to effectively do business, they often needed to bribe public officials, which directed money away from society, government taxes and solely profited public
These alternative resources and incentives assisted in slowly returning balance to the communities that were once involved in the illicit coca production. This as well as the IMF’s support after 1990 has strengthened Peru’s macro-economic structure and