Organization: Penn State University
Date: Tuesday, 7 Apr 1992 11:15:50 EDT
From: <OEF100@psuvm.psu.edu>
Newsgroups: soc.culture.latin-america
Subject: Re: Lates news from Peru

   With the colapse of Eastern Block and the subsequent embracement of capitali
many people coined the phrase "Communism is the shortest path to Capitalism"
 as to refer as the need that all societies have to face a period of hardships
 in which the fundamnental and pivotal decisions have to be taken in a
 decisive and unopposed way. The fundamental decisions have to do with
 basic infrastructure, education, social organization and such, so after this
 period a better "leveled playing field" is in place and capitalism and
 competence can develop and prop up economic progress.

 Although the hypothesis appears not to hold to all cases (look Albania)
similar reasoning can be exerted and backed with facts if you the cases of
Chile, Malasya, Singapur, Korea, Taiwan and other successful examples.(SPAIN)
(maybe I should include Cuba in this list if everything happens accordingly)

There are very serious rigidities in some societies that the "formal democratic
organization" has been uncapable to eliminate.In the contrary democracy appears
to increase the waste, the ilogical, the paralysis and the corruption.(I recall
 the words of Pinochet talking about the "Seniores Politicos", here). And the
 stupidity of politicians can be so resilent that they will be blind of what
 their constituency wants,choosing to concentrate into their own world of
 words, perks and corruption ( recall what is the US Congress today !! ).

  Peru is facing the last years the most serious crisis in its history. Not
 only the bills of overlending are due, but the whole structure of scociety
 is changing, The "classic burgoise" has been fleeing the country to Miami and
 other places, the State apparatus have been proven inept and corrupt at the
  time that State companies accounts for more than 60% GDP, alternative
  methods of investment are not in place, the wealth of the resources of the
  country is dormant, 65% of Peruvians is dirty poor, a third of the people
  live in precarious settlements. Overall Shining Path and the coca trafiquers
  have a strong alliance, the dirtiness of drug business is here mixed with
  the violence of maoism pol-pot-style. Things are bad, really bad in some area

  Now, there comes in 1990 Fujimori, a guy with energy, a guy with decision,
  a guy without compromises neither with burguoise nor politicians. He faces
  the problems(act that is noble in itself) understand that they shoould
  drastically reduce the State companies, follow monetary dicipline and
  give the fight, the real fight agains Sendero, which is draining the blood
  of Society.

  The plans are successful up to now, and the show is really starting. A bold
  (an I say bold) plan to privatize EVERYTHING is under way. Foreign creditors
  are being attended, IMF, WBank and Paris Club are all agreeing. Most importan
  Peruvian population is also in favor (62% approve the boldness and style of
  Fujimori), inflation is under control, Peruvian society after 10 years is
  starting to have a bit of confidence in the future (95% of all business
  executives think that Fujimori will defeat Sendero in the next years), there
  the first though yet small signs of investment in real state, construction,
   oil, mining, and others.

  But then then Congress and the army of do-nothing politicians start to block
  ALL EFFORTS TO PROGRESS, they want to stop privatization (leaded by the
  tragic APRA party that basically said : I OPPOSE ALL WHAT THE GOVERNMENT DOES
  they don't realize the urgency of the situation, instead they increase their
  perks (2500 dollars a month in a country where the average worker recives 150
  they pass a law giving that salary for all their live, they block the reform
  of judiciary, the nightmare is daily,they simply demonstrate their uselesness
  to the people ( only 4 to 5% said  the Congress have any relevance in Jan92)
   Totally off track, totally out of touch, totally irresponsible.
   Proposal for referendum are rejected in Congress, fearing that FUJI
   will win the popular vote.

   The next chapter of this drama is Fujimori last Snday,taking power,disolvin
  CONGRESS and puting in custody the most vociferous politicians. Trully
  the method is gross and unconstitutional. The constitution is not good to
  provide ways to settle the paralysis that come from the dispute among
  power branches, it is trully naif and clumsy to that respect. However the
  reality is that is the President Fujimori that has the responsability to
  manage Peru to a better stage, and he feels obligated to carry reforms.
  What can he do to perform his job and mandate if the Congress is dominated
  by a bunch of self-deserving "politiqueros" that its task is to block all
  initiatives, no matter how valuable they are??? I do not have the answer to t
  question and probably nobody has it.

   So now, FUJI is in power backed by the ARMY, backed by his economic
   team (the same as before) and backed by the inmense mayority of the populati
   , a poll taken yesterday shows 88% approval of the measures !!!!. He then
   faces the criticism of many many foreign institutions that interpret all
   signs as a classical disruption of democracy. Again I don't know how
   will this be solved, I rely on the "damaging control plans" that he and
   his staff may have prepared in advance. Remember that the people that
   trully knows and understand the gravity of Peru situation have always
   backed FUJI economic policies and military strategy (Bert Aronson,
   Camdemssus, the Japanese government, among others)

    Finally, easy comdemndations of FUJI actions are very quikly made when
    one is outside Peru living a confortable life and not facing or
    suffering the dramatic situation of the country (like Mr. Vargas LLosa
    who left to Europe one week after he was defeated). I personnally
    think that one must be fair and understand the complicated situation.
   Maybe the FUJI-movements are not optimal but are necessary to get out of
   the destruction path of Peruvian society, we must watch carefully what
   are his next steps before any judgement is made.

Oscar  Frias