The liberal policies in Peru are not recent, they have been evolved at least since the Cadiz Constitution of 1812. During the 20th century this liberalizing trend is manifested in the trade policies prior 1960, notably with the influence of people like President Leguia and Prime Minister Beltran. The liberal nature of trade policies in Peru up to 1960 is characterized by several key features (Rojas 1993)1 among them low tariff levels and the absence of exchange controls which led to an economy more open to foreign trade. This liberal stance contributed to defining the economic landscape of Peru up to the 1960s, making it distinct in its approach compared to other Latin American countries that adopted more protectionist and interventionist policies during the same period.

The Fujimori administration in the 1990s introduced significant neoliberal reforms, marking a return to the primary-export model but under a new neoliberal framework. These reforms included trade liberalization, privatization of state enterprises, and financial deregulation2. Despite attempts to mimic the growth strategy of the 1950s, the 1990s faced unique challenges due to financial liberalization, affecting the traditional mechanisms for dealing with external shocks. The central bank’s capacity to impose credit restrictions or devalue the currency was notably reduced.

The transition from the export-led growth of the 1950s to the neoliberal reforms of the 1990s reflects a complex interplay of economic ideologies, political leadership, and external pressures, each leaving a distinct imprint on Peru’s developmental trajectory. The trade policies in Peru up to 1960 and from 1990 are in concordance with the principles outlined in the current 1993 Constitution of Peru3, especially those detailed in the economic regime section. The Constitution emphasizes a social market economy where private initiative is free and operates within a framework oriented by the state, primarily in areas promoting employment, health, education, security, public services, and infrastructure​

Key constitutional principles that align with the discussed trade policies include:

  • Freedom of Private Initiative and Economic Roles of the State (Articles 58 and 59)
  • Pluralism Economic and Free Competition (Articles 60 and 61)
  • Equality of National and Foreign Investment (Article 63)
  • Freedom of Contract and Consumer Protection (Articles 62 and 65)

These constitutional provisions underscore the legal and ideological foundation for the trade policies implemented in the above-mentioned periods, indicating a continuity of economic liberalism principles adapted to the evolving social and economic contexts of Peru. The Constitution not only supports the liberalization efforts and the promotion of an open, competitive market but also mandates the state to play a guiding role in ensuring that these policies contribute to the overall development and welfare of the nation.

References

  1. Rojas J. 1993. El Peru hasta 1960: Politicas liberales en una economia abierta. Cuadernos de Trabajo 109, Departamento de Economia PUCP. ↩

  2. Dancourt 1999. Neoliberal reforms and macroeconomic policy in Peru. CEPAL Review 67: 51-73. ↩

  3. Constitucion Politica del Peru de 1993. ↩