What Caused Peru’s Economic Downfall?

By Alfredo E. Thorne

Social cleavages have turned politics into a fight for spoils, draining the country’s productive potential, writes a former minister of economy and finance.

LIMA — For most, the transformation that Peru experienced since 2016 is difficult to understand. Politically, we have had seven presidents in seven years, and our economy has made a 180-degree turn, from fast growth to recession in the first half of 2023. Identifying the underpinnings of this change is a challenging task. There’s one group that sticks out as deserving particular blame. The corruption of construction companies since 2001 exposed almost all former presidents since Alejandro Toledo (2001-06), distorting our political system and parties, which became instruments to...

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