Lima Consensus

The "Lima Consensus" (Spanish: consenso de Lima), a term attributed to Harvard University's government professor, Steven Levitsky, refers to a set of economic policies that have predominated in Peru starting from the presidency of Alberto Fujimori. This term was fashioned analogously to the "Washington Consensus." Defined by its neoliberal, deregulatory stance and a export-led growth emphasizing raw materials, the Lima Consensus is based on free market capitalism. Peru's economic elites expressly support these economic policies.

In 1990, Fujimori's government applied neoliberal policies, including a shock therapy prescribed by Hernando de Soto, colloquially known as "fujishock." Consequently, these measures bolstered Peru's attractiveness for foreign portfolio investment. While the early 2000s saw a regional shift towards left-wing governments, termed as the 'pink tide,' the Lima Consensus remained largely unchallenged since its inception in the early 1990s. Notwithstanding, the presidencies of Pedro Castillo (2021-2022) and, to some extent, Ollanta Humala (2011-2016), are noted for their opposition. Yet, the prevalence of the Consensus persisted.

Critics argue that it has amplified economic inequality, crony capitalism, contributed to rising crime rates, and political corruption in Peru. They also argue that labor rights have suffered, and been sidelined in favor of market liberalization and capital interests, while supporters, often referred to as free market fundamentalists, consider economic interventionism to be socialist or communist.