Lima Consensus

Not to be confused with Regional Conference on Women in Latin America and the Caribbean, the Lima Consensus (conference).

The "Lima Consensus" (Spanish: consenso de Lima), a term attributed to Harvard University's government professor, Steven Levitsky,[1][2] refers to a set of economic policies that have predominated in Peru starting from the presidency of Alberto Fujimori. This term was fashioned analogously to the "Washington Consensus."[1] Defined by its neoliberal, deregulatory stance and a export-led growth emphasizing raw materials, the Lima Consensus is based on free market capitalism. Peru's economic elites expressly support these economic policies.[3]

In 1990, Fujimori's government applied neoliberal policies, including a shock therapy prescribed by Hernando de Soto, colloquially known as "fujishock."[4] Consequently, these measures bolstered Peru's attractiveness for foreign portfolio investment. While the early 2000s saw a regional shift towards left-wing governments, termed as the 'pink tide,' the Lima Consensus remained largely unchallenged since its inception in the early 1990s. Notwithstanding, the presidencies of Pedro Castillo[5] (2021-2022) and, to some extent, Ollanta Humala (2011-2016), are noted for their opposition.[6] Yet, the prevalence of the Consensus persisted.[6][7]

Critics argue that it has amplified economic inequality, crony capitalism, contributed to rising crime rates, and political corruption in Peru. They also argue that labor rights have suffered,[3] and been sidelined in favor of market liberalization and capital interests,[1][2] while supporters, often referred to as free market fundamentalists, consider economic interventionism to be socialist or communist.[1][8]

  1. ^ a b c d Tegel, Simeon. "How Peru Laid the Groundwork for an Oil Spill Disaster". Foreign Policy. Retrieved 2022-02-23.
  2. ^ a b Tegel, Simeon (8 May 2020). "The Health Crisis is Changing Peruvian Politics". Americas Quarterly. Retrieved 2022-02-23.
  3. ^ a b Sanchez-Sibony, Omar (2022), "How a Democracy without Parties Malfunctions", Democracy without Parties in Peru, Cham: Springer International Publishing, pp. 429–505, doi:10.1007/978-3-030-87579-4_6, ISBN 978-3-030-87578-7, retrieved 2024-01-02
  4. ^ Brooke, James; Times, Special To the New York (1990-08-12). "Peru's Poor Feel Hardship of 'Fuji Shock' Austerity". The New York Times. ISSN 0362-4331. Retrieved 2024-04-24.
  5. ^ "Peru's Election Of Pedro Castillo Will Pose Substantial Risks To Policy Continuity". Fitch Solutions. 2021-06-11. Retrieved 2024-01-02. Castillo's presidency will threaten [...] the 'Lima Consensus'.
  6. ^ a b "Police Repression Legalized as Mining Protests Grow in Peru". NACLA. Retrieved 2024-01-02. Despite the fact that Ollanta Humala's administration has sometimes sought more political and negotiated means, [the Lima consensus] remains in place
  7. ^ Cite error: The named reference :9 was invoked but never defined (see the help page).
  8. ^ "El Consenso de Lima". La Republica (in Spanish). 2013-05-11. Retrieved 2022-02-23.