Business and the "Boys": The Politics of Neoliberalism in the Central Andes

Although the 1970s witnessed a convergence of neoliberal economic policies and authoritarianism in the Southern Cone countries of Latin America, the 1980s gave way to a new combination of economic orthodoxy and democracy in Bolivia, Ecuador, and Peru. Neoliberal economic projects emerged in these central Andean countries as they confronted broadly similar economic problems. Plummeting prices in the international market for key exports, decreased investment, and growing financial burdens imposed by the international debt created the parameters of la crisis— the topic that became a central focus of political discourse in these new democracies. At different points in time, each of the three countries responded to the crisis with neoliberal economic experiments. In Peru a turn toward neoliberalism occurred under the administration of Fernando Belaúnde Terry (1980-1985), only to be completely reversed by the heterodox policies of Alan García (1985–). In Ecuador basic stabilization measures had already been undertaken by the government of Osvaldo Hurtado (1981-1984). León Febres Cordero (1984-1988) then committed the country to a monetarist and antistatist model. In Bolivia following the enormous instability and hyperinflation during the government of Hernán Siles Zuazo (1982-1985), the country adopted a neoliberal approach under the presidency of Víctor Paz Estenssoro (1985-1988).