How Alberto Fujimori Was Able to Maintain Popular Support after the Shock - Term Paper Example

How Alberto Fujimori was able to maintain popular support after the "shock"? Introduction Peru is a South American country that has experienced many political events since 1980. In the period between 1980 and 1985, Peruvians were under the leadership of Belaunde. Belaunde’s presidency had promised to create over a million new jobs for the Peruvians but this was not to happen. His leadership was characterized by unorthodox methods by his government officials, inflation, violence and climate disasters. Alan Garcia then took over the presidency from his predecessor Belaunde in 1985. Garcia had outlined various economic plans that would enable the state lower its inflation rate and enhance the living standards of the people. Garcia started well, but by 1989, things started going haywire. His leadership was riddled in corruption; hence, he started losing the popular support of his people. Furthermore, hyperinflation almost crippled the economy of Peru in 1989. All these culminated in the end of his leadership tenure in 1990 (Caretas 98). Next was the leadership of Alberto Fujimori in 1990. When Fujimori inherited the presidency, Peru was faced with various challenges; soaring unemployment rates, hyperinflation, high violence rates, and the public’s disillusionment with politicians and political parties. Fujimori implemented what is widely known as the ‘’shock therapy’’ which he felt was the best way that he would use to revive the country that was riddled with very many economic challenges and vices. Fujimori was able to maintain popular support even after the shock therapy, which many pundits deemed ineffective. This paper analyses the political tenures of Peru’s presidents since the 1980, including the tenure of Alberto Fujimori, the brainchild behind the shock therapy. The paper also analyses why Fujimori was able to maintain popular support even after the shock therapy, and the decline of his power in Peru. In order to understand what Fujimori encountered through his government and the decisions he made, we need to go back a decade before and follow the reasons that created and maintained a rolling snowball to this country’s most desperate times (Rousseau 118). Belaunde’s leadership (1980-1985) Fernando Belaunde Terry, born October 7, 1912 was a politician, educator and architect, and twice served as president of Peru. Peru is known for stagnant dictatorship, but Belaunde sought to introduce a laissez-faire form of leadership that would ensure that events in his country were handled in a democratic manner. Belaunde was first elected to the presidency in 1963, but, he was overthrown and exiled in 1968 in a bloodless coup by Gen Juan Velasco. What followed after this was a 12 year military rule in Peru. Belaunde spent ten years in exile, teaching in various top universities in the US, like Harvard, Johns Hopkins and George Washington. It is this ten year experience in the US that imparted democratic principles in him. The military rule in Peru had started experiencing various challenges which landed the economy in a delicate position. As the economy was in a state of deep depression, the military rulers permitted an election to take place so that constitutional rule would be restored in the country once more. Returning to Peru in 1980, he won the presidential election by a landslide, ushering in an era of democratic rule (Rousseau 116). Belaunde enjoyed congressional majority during his second term, although political and economic problems heavily plagued his presidential tenure. Crabtree (1998) described Belaúnde government as a hybrid, with neoliberal economic policies, less military statism than previous periods and driven more to the populist impulses Enormous budget deficits, increasing foreign debts, hyperinflation, natural disaters and weak external markets for Peru’s exports, all mounted pressure to Belaunde’s regime. At about the same time period, a guerilla organization, The Shining Path, campaigned relentlessly against the government. Armed forces and police officers tried their best to suppress this group, but it even became worse because innocent citizens were physically abused in the process, which led to widespread denunciation from human rights activists. However, this does not mean that Belaunde did not enjoy any form of success during his presidential tenure. In his two administrations, Belaunde was an architect of very many development projects in Peru including important highways, hydroelectric dams, electricity projects, and housing projects in various towns. His economic record was also noteworthy for starters. Between 1980 and 1981, the per capita GDP increased to 1.9% and inflation rates were reduced below 75% as a result of reduction of tariff rates. However, this was downgraded by the massive debt and inflation that the country experienced during his second tenure. Political violence was also rampant during this tenure, further complicating his leadership. Statistics reveal that, at the end of 1985, 1359 deaths were recorded in Peru as a result of political violence, a far cry from the 3 deaths that were recorded in 1980. Together with El Nino disasters, all these factors ensured that Peru’s economy was severally hurt between 1982 and 1985. This further impacted negatively on Belaunde’s political life since he was seen as the reason for the country’s underperformance. El Niño is a prominent red band indicating warmer water extends out into the Pacific Ocean which effects reach countries like Ecuador and Peru (NCDC). The devastated effects were related to drought in agricultural sectors provoking big loses, torrential rains damaging many communities (up to 100 inches during a three month period), and fish scarce due to warm waters. As documented by “Biblioteca Virtual De Salud Y Desatres”, the effects of El Niño caused a loss in Perú of approximately $3, 284 millions during Belaundi’s tenure. The presidential election in 1985 marked the end of Belaunde’s tenure and that of his party, Popular Action Party. The candidate of this party finished last in the 5-man election poll which won by APRA’s Alan Garcia. After his administration in 1985, Belaunde started serving as a diplomat in various capacities. Many of his admirers called him ‘’The Architect’’ since his oratory skills, visionary programs and democratic ideals inspired many. He enjoyed much more widespread honor and respect after his presidency than when he was president. His long political journey came to an end on 4th June 2002, aged 89, when he succumbed to cancer and an ischemic stroke. Alan Garcia (1985-1990) Alan Garcia was the successor of Belaunde, after trouncing his opponent in the 5-candidate presidential election of 1985. Apart from serving as Peryu’s President between 1985 and 1990, Garcia has also served as Peru’s president between 28th July 2006 and 28th July 2011. In his first term, the country was riddled with social unrest, violence and the economic crisis that had been lefty behind by Belaunde’s regime. Statistics reveal that deaths from political violence clocked the 3452 number mark by 1990. His first tenure, according to critics was marked with rampant social conflict and increased environmental damage (Kenney 65). Garcia assumed power in Peru on July 28th, 1985. He was the first APRA member to assume leadership of the country. During this time, he was aged 36, hence he was dubbed ‘’The Kennedy of Latin America’’ as he was the region’s youngest president. Initially, he was popular among the Peruvian people; however, hyperinflation and chronic inflation de-stabilized the economy of this South American country. Inflation was so rampant such that, in 1990, inflation rates clocked 7,649. In total, during his 5 year tenure, inflation rates were over 2 million percent! After he took over the presidency, Garcia had come up with various plans and strategies that his government would use so as to lessen the inflation that was inherited from the previous regimes. However, Garcia started losing the people’s support due to various corruption allegations. As a result of this, hyperinflation began to skyrocket in 1989, reaching an all time high in 1990. As a result of the high inflation rate, the Peruvian currency was changed in mid-1985. In the whole administration of President Garcia, the Per capita income of the Peruvian people depreciated markedly and the country’s GDP reduced by a whooping 20%. Coupled with this, national reserves depreciated up to a negative value by the end of his presidential term. Statistics indicate that, by the start of Garcia’s administration about 42% of Peruvians lived below the poverty line, and by the end of his tenure, this percentage increased to 55%. This implies that the living standards of the people diminished markedly during President Garcia’s administration between 1985 and 1990. This economic turbulence in Peru at this time worsened social tensions in the country, and this led to a violent uprising, the Shining path. This violent group paralyzed normalcy in Peru by attacking social amenities and electrical towers in Peru. In order to quail political tensions, Garcia’s administration sought military help, but, this received widespread condemnation from social groups and human rights activists. Therefore, Garcia’s presidency left a lot to be desired in terms of social and political order. Apart from this, his economic record was also very poor, which left the nation in a state of massive hyperinflation, financial isolation from the international community and rampant economic recession (Kenney 89). His flaws and political indecision contributed to Alberto Fujimori’s rise as a political bigwig in Peru. Unknown to many at the time, Fujimori shocked many when he took over power from Garcia after his tenure in 1990. Fujimori’s government accused Garcia of many corruption scandals during his leadership; hence, this blocked him from future elections. In 1992, he went on a political coup in Columbia and France, and after almost 9 years away from Peru, he returned home after president Fujimori resigned from the presidency in 2001. Garcia returned to the presidency again in 2006, 16 years after his disastrous term. The emergency of Alberto Fujimori, 1990 Alberto Fujimori founded Change 1990. Seen as an outsider who only appealed to the working class, the poor and informal sector workers, many would not have imagined that Fujimori would be the next leader of Peru for the next decade. In 1990, the country had witnessed the worst economy after the poor leadership of former president Garcia. Peruvians were tired of politicians and political parties, hence Fujimori appealed to the masses. En route to the elections, Fujimori was gaining support at a rate of 1 to 3 percent daily. As a result of this, it was no surprise that he trounced his opponents in the elections of 1990 (Caretas 102). Alberto Fujimori started is presidency in Perú in July 28, 1990. His political journey arose in 1989 when he founded the new political party, “Cambio 90” or Change 90, which prepared him for the presidential elections of Perú in 1990. He was strongly criticized for been of Japanese origin, but Peruvians were looking for a candidate that could propose and create a drastic change to rescue the country. El Chino, nickname given for been oriental descendent, had a poor childhood and portrayed himself to understand the problems and difficulties of the Peruvians. Starting this new job was not an easy task for Fujimori since he entered to rule a government in total crisis; former Presidents, Fernando Belaúnde Terri (1980-1985) and Alan Garcia Pérez left the country submerged in the hyperinflation, unemployment and violence caused by the terrorist groups of Shining Path and MRTA. The 1980’s were difficult times for the people of Perú. Economically, it was considered “The Lost Decade”, were urban poverty was exacerbated by an acute economic crisis, rising unemployment and underemployment, and the overcrowding of Peruvian cities due to continued internal migration from the Sierra and rural areas. Economic growth rates averaged six percent for the region in the 1970s, but went down in the 1980s, while populations continued to increase. The economy of Peru presented signs of stability under the Presidency of Fernando Belaúnde Terri in the years of 1980 an 1981, only to start falling again in 1982 following to disastrous effects in 1983 due the effects of El Niño in the climate, the increase of political violence and monetary inflation. This is an illustration of the problems that Fujimori inherited when he took over the presidency in 1990. The next table and graphics summarize Kenney (2004) explanation of how hyperinflation and GDP fluctuations took their path in the 80’s, leaving Fujimori with only drastic alternatives to control them. Year GDP % Inflation, average consumer prices     1980 1.8 59.145 1981 1.9 75.433 1982 -2.2 64.46 1983 -14.6 111.149 1984 2.4 110.209 1985 0 163.398 1986 6.9 77.921 1987 6.2 85.846 1988 -10.2 666.955 1989 -13.4 3398.272 1990 -7.2 7481.691 1991 0 409.527 1992 -2.2 73.527 1993 3.1 48.436 1994 10.8 23.631 1995 6.7 11.13 Election Period, 1990 A couple of years before the 1990 general election, Fujimori and his learned friends and businessmen in Peru founded the Change 90, which was to be used as a vehicle during the election period. At the same time, Fujimori enhanced his public reputation by being a host of a radio program ‘’Getting Together’’ which was concerned with airing public affairs. Fujimori was lauded for this move as it showed that he was aware about important issues in the country at that time. He was also able to foster understanding between opposing speakers during the show, which further catapulted him into national stardom (Sally & Bauer 146). A total of 9 candidates vied for the presidency. The frontrunner in the election was renowned South American novelist, Mario Vargas Llosa, candidate of the Conservative Democratic Front coalition. He was favored to win the election by over 50% during the 1st round of balloting. However, many citizens were left in awe due to his plan of squashing the huge budget deficit and the massive inflation with a quick-type ‘’shock therapy’’. This shock therapy was to be effected through subsidies for fuel, utilities and staple foods. Mario Vargas also planned to fire hundreds of government workers as part of his ‘’shock therapy’’ (Kenney 92). During the last campaign month, Fujimori had a plan that consisted of three basic tenets as his slogan; ‘’honesty, hard work and technology’’. As a result of the dwindling popularity of Vargas and his noteworthy campaign slogan, Fujimori rose in popularity from a mere 4% to approach Vargas’ 27%, only going short by 3 points in the polls. This forced a runoff between the two main candidates. During the campaign period en route to the second contest, Fujimori told the electorate that Vargas Llosa’s shock therapy would place a very large burden on the Peruvian people; hence he discouraged people from voting for Vargas as a result of his unsuitable policies of combatting hyperinflation and economic hardships of Peru. Instead, he urged people to vote for him since he would introduce gradual economic remedies for Peru’s economic impasse. Fujimori further directed criticism towards Vargas by asserting that his plan of using the military to counter guerilla insurgency and drug problems was not the best. Instead, he proposed to introduce economic developments that would undercut support for the guerilla insurgents. He also promised to bring an end to the cultivation of coca, the source of the drug cocaine by introducing a program of crop substitution. Fujimori’s criticism of his opponent, and the potency of his policies worked in his favor; he won the second round election by garnering 56.5% of the votes as compared to Vargas Llosa’s 34%. Pundits felt that the working class people of Peru had voted for Fujimori while the elite and middle class of Peru voted for Peru. He was inaugurated as Peru’s president on 28th July, 1990. In his first address a s president, Fujimori asserted that what he had inherited from his successor, Alan Garcia was a ‘’disaster’’. Fujimori’s administration quickly got down to business with his gradual ‘’shock therapy’’ (Crabtree 289). Fujimori’s Shock Therapy Fujimori’s new administration immediately got down to business by introducing a new shock therapy. There was a 7300% increase in the prices of basic commodities. Prices of commodities were markedly elevated then they were frozen. Apart from these alterations in the prices of commodities, Fujimori’s shock therapy also comprised of target distribution, privatization of national companies, media control, target distribution on certain areas, and the ‘’self coup’’ and creation of a new constitution for Peru. Another aspect of the shock package was trade, labor and financial deregulation. Import substitutions were also abandoned by Fujimori’s government (Crabtree 290). When Fujimori succeeded former president, Alan Garcia, he did not have a congressional majority; hence he was forced to form a coalition government that comprised of left wing politicians and centrist leaders. However, this did not deter him from going on with his election pledge of introducing a shock therapy in a gradual manner, so that the economy would be revived. He hired a former Army member and lawyer, Vladimiro Montesinos to be his security advisor. The first phase of Fujimori’s economic shock therapy was effective on August 8th 1990, whereby the government of Fujimori ended subsidies and prices of commodities quadrupled. Prices of commodities skyrocketed so highly that inflation reached 7300%. Starting from March 11th 1991, Fujimori’s government introduced the second phase of the shock therapy. Widespread privatization of commodities was introduced and this was seen as a way of enhancing the state’s earnings. Apart from this, borders were opening, allowing the free influx of goods and other commodities into Peru. This enhanced the country’s market and ensured that newer markets would be opened up for Peru’s goods (Robinson 40). Fujimori also introduced drastic measures in Peru by slashing the bloated government payroll and also ensuring that the tax system was reformed. The government also sold off state-run industries in a bid to gain revenue for the state. Fujimori further slashed down subsidies and raised the minimum wage of Peruvians. These reforms were so drastic that, they implied that stern austerity was taking place in Peru and prices of basic goods shot up. Although citizens were in owe during the initial phase of the shock measures, Fujimori’s reforms were successful since they stabilized the economy. Therefore, Fujimori was seen as the leader who saved Peru from a state of total economic collapse. Due to this reason, international financial corporations like the IMF were enthralled by Peru’s efforts, and loans started trickling in. Apart from this, the country started witnessing foreign investments, which further uplifted its economic profile (Robinson 53). Another aspect of the shock therapy was in the political setting. Fujimori slashed the influence of the Shining Path and the MRTA, the two largest insurgent groups in Peru. In the 1980’s, these two groups had Peruvians in fear due to their insurgency activities. These two groups had always wanted to topple the government and transform it into communist models like those in China and Russia. They assassinated leaders, organized strikes, blew up electric buildings and did all forms of terror. By 1990, the groups had spread markedly, which made Peruvians to live in fear since they were forced to pay taxes to these terrorists. There were no government forces in most of these areas as evidenced by the de facto leadership by the Shining Path in the Ayacucho region (Rosseau 119). Just like Fujimori had introduced measures on the economy, he introduced sterner measures against these two insurgent groups. He used a direct and ruthless approach when dealing with the insurgents. His military personnel were given freedom to capture, interrogate and physically torture suspects without any judicial oversight. Human rights groups at the time criticized his approach, but this did not deter him from proceeding with his course. Despite these criticisms, results were noteworthy. By 22nd September, 1992, Peruvian forces had severely weakened the Shining path after its leader Abimael Guzman was captured. By 1996, MRTA forces had been crushed by Peruvian forces. Therefore, Fujimori is seen by many as being the man who salvaged Peru from the fangs of terrorism (Kenney 123). The Self-Coup of 1992 was another form of shock therapy that Fujimori used to salvage Peru from the former regime. This can be seen as a form of political shock therapy. After Fujimori became president, he did not enjoy congress majority as his government was dominated by opposition members. As a result of this, he was always unable to institute key reforms that would enable him come up with policies of improving the economy and ending terrorism and violence. As a result of this, Fujimori made a daring move. On the 5th of April, 1992, he conducted a self-coup whereby all government branches were dissolved except the executive since it is that that he represented. Fujimori also suspends the constitution amid political uproar. The military supported him in this, together with a section of the country who felt that the congress was not carrying on with its mandate well. Fujimori advocated for a new congress and a new constitution. Due to his dictatorship, a new constitution was enacted in 1993 (Sally & Bauer 147). The Self-Coup was a success, albeit its dictatorial nature. It allowed him to be free to act so that he would be able to solve his countries economic and social problems. The newly drafted constitution was another bonus to Fujimori since it was drafted by his cronies. The only set back to this coup was the global condemnation that it received, which forced many countries at the time to break diplomatic ties with Peru. Why did Fujimori maintain popular support even after the ‘’shock’’? Fujimori’ is seen as the Peruvian leader who rescued the country from economic collapse and terrorism due to his shock measures. His regime started subsiding later due to corruption allegations, abuse of office, abuse of human rights, embezzlement of public property and dictatorship. These later culminated in his disgraceful self imposed exile to japan for 5 years. His leadership came to an end in 2000. He is currently in Peru facing various charges concerning abuse of office during his time. Despite this fact, Fujimori was still able to maintain popularity even after the shock therapy which for starters, was dreadful (Robinson 100). This can be attributed to the economic, political and social gain that Peru had as a result of the shock therapy. Initially, when Fujimori was implementing the shock therapy, citizens of Peru were very shocked, however, they understood since drastic measures had to be implemented if at all the country was to recover from the economic ,massacre of the former regimes. People felt that Fujimori’s measures were the only medicine for the crisis that was in Peru at that time. People had been afraid to revert back to the 80’s period; hence, they gave their total support to Fujimori. The shock therapy benefitted the country in the sense that it ensured that there was stabilization through suppressing violence. For years, people had been troubled by insurgency from groups like the Shining Path. These group terrorized villages by torturing people and asking for taxes. With the capture of the group’s leader, Guzman in 1993, insurgency was controlled in Peru (Crabtree 289). Hence, people started living well from this time period. People also supported Fujimori because his policies improved the economy and ensured that hyperinflation was controlled. The GDP was enhanced and target distribution ensured that certain sectors were able to cope with adverse economic issues. This introduced the aspect of flexibility in the economy. Privatization on national companies also enabled the nation enjoy economic boost. Therefore, living standards of Peruvians were improved markedly. As a result of this, people were appreciative of Fujimori and his policies. Furthermore, Fujimori changed distribution of public funds in that more were channeled to urban provinces. Although this was politically motivated, living conditions of the poor were improved, and this ensured that they continued supporting Fujimori (Sally & Bauer 148). Conclusion The shock measures did come with demerits. Despite placing Peru on the road to economic recovery, Fujimori’s shock measures were the genesis of his political woes and disgrace. Media control ensured that freedom of expression was curtailed. This increased the number of Fujimori’s opposition with time. The Self Coup was another bad effect of the shock therapy. It was an act of dictatorship which enabled him to undertake tasks as he wished without monitoring. It also brought about cronyism in his leadership since the new constitution of 1993 was drafted by his close friends. The shock therapy was also a scheme of looting public funds through corruption. Through his close ally Vladimir Montesinos, Fujimori was able to control all areas of Peru and his leadership was heavily rooted in corrupt deeds. Finally, in quelling violence, civilians were killed. The army had death squads that butchered members of the Shining path without judicial intervention. Many of these evils were seen as abuse of office, and culminated in his disgraceful self imposed exile. Works Cited Bowen, Sally, and Richard Bauer. "Shock Therapy Turns Round the Economy." Euromoney.300 (1994; 1994): 144-. Print. Caretas. Lima, Peru : Empresa Editora Caretas S. A.,Print. Crabtree, John. "The Collapse of Fujimorismo: Authoritarianism and its Limits." Bulletin of Latin American Research 20.3 (2001): 287-303. Print. The Fujimori Legacy :. University Park, Pa. : Pennsylvania State University Press,Print. Fujimoris Peru :. London : Institute of Latin American Studies,Print. Kenney, Charles. Fujimoris Coup and the Breakdown of Democracy in Latin America. Notre Dame, Ind. : University of Notre Dame Press,Print. Latin American Religion in Motion. New York : Routledge,Print. Robinson, Eugene, and Washington P. F. Service. " Fujishock Pulls Peru Up Short ; New Presidents Plan to Wring Out Inflation Hobbles Commerce." The Washington Post. Print. September 26 1990. Rousseau, Stéphanie. "Womens Citizenship and Neopopulism: Peru Under the Fujimori Regime." Latin American Politics and Society 48.1 (2006): pp. 117-141. Print. Shining and Other Paths : Durham [NC] : Duke University Press. Print. Read More