Thursday, 5 May 2016

(Assignment 1) Peru – Two decades of differing syndromes - Diana Evangeline

Peru suffered from serious economic and political instability during 1988-1990 with hyperinflation and social hardships. The situation was ideal for an authoritative Fujimori government to come to power in 1990 and Alberto Fujimori proved adept at bringing the situation under control with his neoliberal macroeconomic policy changes, popularly known as the ‘Fujishock’. However, after almost ten years in power, the Vladi-videos shook the country with allegations of his corruption, embezzlement of public funds and abuse of power. The Vladi-videos were basically records showing Vladimiro Montesinos, the intelligence service head, offering bribes to opposition parties, television-channel owners, etc., which revealed a decade of corruption that was aimed at disrupting the very means of checks and balances in a democracy – the media and the political opposition.
What follows this authoritative regime in the present Peru day is again worth noting. All the recent instances of corruption reported come from a more local level. There has been a worrying growth of the illegal economy and the increased decentralization of the government seems to have been a contributing factor.[i] The Alejandro Toledo government that took over from Fujimori called for the election of 25 (initially thirteen) regional governments that would then be directly involved in the economic development of their specific region. With decentralization, the leaders at the upper levels of governance could denounce responsibility for what happens at the lowest levels.
Michael Johnston, in his analysis of the syndromes of corruption, places Peru under the ‘Oligarchs and Clans’ syndrome which is characterized by ‘rapid and significant liberalization of politics, economies, or both, yet their institutions and civil societies are very weak’.[ii] However, Johnston points that in this syndrome, corruption takes place at multiple levels but more importantly ‘involve a relatively small number of elites and their extended personal clans’ which is consistent only with the first decade of Fujimori’s rule. The second decade however has seen a greater amount of corruption from the decentralized wings of the government.  
A study conducted on the Vaso de Leche (glass of milk) program in trying to track the spending of public funds from budgeting to the final consumption of the milk by the beneficiaries in their households reveals that only about twenty-nine cents of each dollar spent by the central government reaches the beneficiaries.[iii] It points that the around forty percentage of the leakage takes place at the final stage of transfer from the municipality to the beneficiary with almost no significant leakage at the top most levels. The Peruvian case thus puts into question the argument on decentralizing governance and focusing on civil society and participatory models of governance and Aristotle’s idea that ‘to remove oneself from politics and avoid one's responsibilities to the collectivity, to detach one's power from the polis, was to leave the common life more vulnerable to external and internal forces of decay and destruction’.[iv]



[i] Divide and Bribe, http://www.economist.com/news/americas/21623706-corruption-and-political-fragmentation-threaten-perus-democracy-divide-and-bribe
[ii] Michael Johnston, Syndromes of Corruption, 2005
[iii] Jose Lopez-Calix, et.al., Local Accountability and the Peruvian Vaso de Leche Program, 2009
[iv] Peter Euben, On Political Corruption, 1978

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