Peru: A Shock to The System

A Shock to The System

When Alberto Fujimori was running for President, he promised he would not try to revive Peru's disastrous economy with shock tactics. Last week Fujimori's two-week-old government unveiled an austerity plan that prompted protests and food riots. Overnight the price of gasoline jumped from 10 cents per gal. to more than $2, and food prices rose 300%. In Lima at least three people were killed by police and army troops, who were enforcing a state of emergency invoked two days before the measures were made public. The plan calls for taxes to be raised, import duties to be enforced and controls on...