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American Academy of Political and Social Science

Consequences of Structural Adjustment on Economic and Social Domains: Two Decades in the Life of Peru Author(s): Orlando Plaza and Nelly P. Stromquist Source: Annals of the American Academy of Political and Social Science, Vol. 606, Chronicle of a Myth Foretold: The Washington Consensus in Latin America (Jul., 2006), pp. 95-115 Published by: Sage Publications, Inc. in association with the American Academy of Political and Social Science Stable URL: http://www.jstor.org/stable/25097819 . Accessed: 21/10/2013 22:05
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This did

article the

examines

the small

in Peru

implementation Though criteria study

improve following producers structural measures? adjustment is seen as economic the improvement growth, to determine This used that are not uniform. of on a diffusion comprehensive of the cash set of indicators of

by asking situation of

what

impact of structural adjustment seems to be a question: simple

focuses

Consequences

period 1980 to 2000 and, whenever possible, presents
data from 1970 that conclude cultural markets which the authors for comparison The purposes. is not so much agri integrating key or into the market rural opening

and rev economy, production, trends different enue, among types of pro exploring to what and classified ducers, according they produce on the is It focuses how the organized. production

of Structural on Adjustment
Economic and

Social Domains: in Two Decades the Life of Peru

the conditions under improving and subsistence small producers farmers become a into the market, which will require deep integrated of the of how the production system understanding rural poor functions. Peru; growth; structural agriculture; economic

producers but rather

Keywords:

adjustment; rural; poverty

By
ORLANDO PLAZA
and

NELLY P. STROMQUIST

are macroeco adjustment programs measures to economic nomic foster that seek Structural An and development. implicit belief of growth the philosophy underlying structural adjustment are is that appropriate macroeconomic policies sufficient to reorganize and revitalize the national economy, regardless of its organizational history or institutional neoliberal character. Indeed, thinkers often assume that sectoral or even tar or no in the over geted policies carry little weight all economy. In practice, structural adjustment programs in two The first generally proceed phases. on financial to focuses stabilization, seeking in state halt the downward spiral solvency by user fees, sector introducing reducing public sec and subsidies. The removing employment, ond focuses on structural adjustment per se, to reorganize the economy seeking through
devaluation, privatization, tax reforms, and flex

ible interest

rates

(Haddad

et al. 1995). Using

DOI:

10.1177/0002716206288759

ANNALS, AAPSS, 606, July 2006

95

This content downloaded from 202.92.128.28 on Mon, 21 Oct 2013 22:06:01 PM All use subject to JSTOR Terms and Conditions

America policies in issues related She specializes considerable experience informal Africa. usually transnational.96 THE ANNALS OF THE AMERICAN ACADEMY inevitably affect rural subsidies and the problems of settings by eliminating agricultural overlooking small farmers and medium-size In Peru. Southern and California. from illegal transac growing informal labor market that encompasses everything tions to domestic subsis small-scale work. en el Nuevo on rural Peru: Actores Milenio and y escenarios (2002) and chapters development in Peru in Politicas. self-employment. These activities have become in countries. Stanford University) is a professor of education at the University of education development in education. prevailing these multiple measures. reformers seek to revive ailing use (Wise 2003). growth would rendering a tional social spending unnecessary. of structural that the application of macroeconomic adjustment recognized poli cies such as fiscal austerity. as As noneconomists such Morrow and Torres (1999) have noted. and Knowledge Feminist Organizations Transformation in Latin America (2006). public tected from competition state and represented and (4) a rapidly by employment. The Connectivity of Economic Power. Stromquist (PhD. market deregulation. La desigualdad en el Peru: Situation y perspectives (2005). in contemporary Labor markets however. 21 Oct 2013 22:06:01 PM All use subject to JSTOR Terms and Conditions . tence activities. adjustment. each deserving and attention. Social interests and social gender and to international and Nelly P. (2002) This content downloaded from 202. following expected economic revive and trickle down. the proponents agricultural producers. instrumentos de desarrollo Latina rural en America y experiencias inequality Plaza y Europa (2002) and Peru Hoy. specific understanding assessments on urban areas. poverty would be reduced. monopoly secondary to a the of demands market (3) responsive competitive pro capitalism. poverty. them into effective and productive Neoliberal focus on urban areas but policies generally economies and bring Orlando is a and former dean (MS. labor By creating dynamic and competitive itwas argued. labor geneous. Not only is increasingly prevalent developing the size of the informal sector growing. Her research relations. of structural adjustment Although usually focus we also on reasons: data rural conditions for three (1) present key examining rural us to test a and investment enables of neoliberal production key promise policies? that they not only stabilize raise (2) mobility between production but productivity. in Latin America. addi adjustment. Technology. and numerous sorts of informal examples of casual work.28 on Mon. She has gender. are markets into four divided discrete (1) a labor market segments: generally linked to a labor market (2) capital. Wisconsin of sociology University) professor of the at the Catholic numerous Social Sciences studies of College University of Peru. and liberalization. accompanied by were but these measures to be temporary structural since. Latin tional and and West and practices. are not homo capitalist economies. measures balanced budgets would have to be to alleviate poverty. family enterprises. He has conducted on issues and structural centers on His research of rural development. rural and urban areas inevitably connects the agrarian and industrial sectors. among policies. other he is the editor of 2001 ant. peas facilitate development producers. public to and mechanisms rural small strategies. with farmers shuttling back and forth to urban jobs to continue to operate as agricul in the tural producers and studies often overlook the (3) countryside. in a Globalized World. privatization. nonformal particularly on the educa among focus dynamics She is the author of Education change.92. but it subsumes a growing variety of pro ductive enterprises.128. and rural communities Among publications. market.

In this evaluation. which at the core of neoliberal reforms. we approximate indicators at the aggregate and family levels. As of life. The foregoing of significant fortunes data offer little evidence in the economic under improvement of agricultural producers structural adjustment. according most observers. among different examining to what and the organiza classified of types according they produce producers. we consider a set of indi not used comprehensive uniformly cators of production. but whenever possible to 1970 As information from for of the latter date. across studies. Sometimes various criteria Economists the key growth. and at other times it is the growth of revenue. crest the Peruvian economy was performing the well. diffusion. often difficulties and lasting changes though crises can unfold during that interval. we ask what appears to be a simple question: was the situation in Peru of small producers generally better after structural adjustment measures? means From an economic perspective. present comparison.92.CONSEQUENCES OF STRUCTURALADJUSTMENT 97 is really effect of structural adjustment on the productive apparatus itself. trends and revenue. We focus on the period 1980 to 2000. statistics to assess the effect of tion of Because we lack nationwide production. Structural adjustment measures were initiated during the second half of 1992 to the present. employ at other times it is diffusion of a cash econ indicator is the volume of production.128. doing better usually exhibiting economic to assess growth. these criteria are omy. very riding ofthe wave of GNP growth that averaged 5. Moreover. In this article. We propose a before-and-after and continue comparison taking the year 1987 as the point of departure it refers to the because preadjustment This content downloaded from 202. them using structural adjustment on farm wages and expenditures. 21 Oct 2013 22:06:01 PM All use subject to JSTOR Terms and Conditions . therefore. and permanent peoples quality cannot be secured in the short term. we consider a time period that is long enough to expect long-term shifts in conditions and to measure we them.28 on Mon.4 percent per year between 1950 and 1975 (Banco Central de Reserva del Peru 1999). Data and Method the effect of structural adjustment programs with precision requires Measuring one to consider ofthe programs (1) the consistency objectives and (2) the ability not to sustain economic to improve of its macroeconomic only policies growth but we have learned in the social sciences. Here.

the and and of trade between import/export industry. The lack of information on these responses does not permit us to establish con a direct link between the macroeconomic policies of structural adjust clusively ment small agricultural and microeconomic behavior. agriculture The first four indicators enable us to depict the situation of rural families and their us to assess the degree capacity to attain food security. The remaining two enable to the national economy as a dynamic sector. Consistent with the principles during the 1990s. among particularly on wages and for whom data representative expendi good. employment ratio of food. and source of income for different-sized Peru's Agrarian Economy of structural adjustment. uncertainty. 2000 seems a reasonable to measure from the materialize which point consequences of neoliberal measures. the amount. economic actors two sets of information: macro We work around data limitations by combining sources and micro-level level indicators derived from the census and government to data obtained from a survey of rural producer families specially designed study in 2003 as part of a Cisepa/PUC/FAO their income and expenses. Data at the family level captures farm households. to which the contributes agriculture as well as the extent towhich it offers food security. prices. units. provide detailed informa tion on income and among small agricultural producers. There were." roughly equivalent This content downloaded from 202. though small. These consisted mostly of food transfers to the poorest sectors various government agencies. Within each state. twenty-five families were interviewed. real wages. the terms poor families. nationally producers tures are scarce. These surveys. panic. of course. type. "agrarian production provides peasant the to farm households. nor did it draft a took no proactive efforts to posi The government strategy of rural development. Following linked to externally recommendations imposed measures to allevi several did the government implement adjustment programs. Over the past three decades. fear.92. allowing for began being applied during over time.128. ate rural poverty. The measures was a year characterized by period and 1987 new situations to so 1992 through 1994.28 on Mon. conducted pro as ject (Plaza 2003). expenditures We focus on six aggregate indicators: the relative number of poor and extremely and unemployment rates. adverse reactions of structural adjustment: that occurred among independently a and loss of reaccommodation of life strategies. The survey covered four states (known in Peru departmentos) that represent the regional diversity of the country. the Peruvian government did not enact any explicit agrarian policy. 21 Oct 2013 22:06:01 PM All use subject to JSTOR Terms and Conditions . sector in good stead but rather abandoned tion the agricultural all defense of this structural sector. sense.98 THE ANNALS OF THE AMERICAN ACADEMY a strong economic crisis. through Types Our of agricultural centers producers on the characteristics and of small agricultural producers analysis on census data Peruvian The farmers.

there are According main units: peasant economies three of agricultural production categories today in subsistence to a lesser extent (about 900. agrarian reform did not eliminate public agricultural allowed the Production enterprises. producers and do some dryland farming). The fundistas?see by or small small mercantile agricultural producers producers nonentrepreneurial to determine whether these appears to be similar.28 on Mon. depending a national a boun Without for these however. plan marketing agricultural products.000 dryland farming).000 in international and domestic markets and have access to irriga producers. poorest Seven were located in the highlands and produced three principal agricultural and wheat. the agrarian reform commission During adjudicated com many requests for land but did not set up an administrative apparatus to new owners. With to the transfer the of titles fall of the property plete military came to a the new political leaders stop. new collective the and Redistribution drastically changed landscape produced de Produccion forms of property. who sell one and tion and bank loans). and commercial farms (consisting of about 58. They generally are products for social consumption This content downloaded from 202. so further analysis is needed two categories to be need really distinguished. As over the the the have varied little table. most agricultural product in recent years. tiful harvest often brought economic loss. largely Agricolas de Interes in the Social (Agrarian Collective Enterprises. Agrarian in force until 1975.CONSEQUENCES OF STRUCTURALADJUSTMENT 99 sector and rural society have and undergone significant transformation were initiated in 1969 reforms the revolutionary military during change. First we selected the top twenty products according under cultivation and the volume and value produced. the period 1969 to 1975. on the coast traditional farms in the Andes and modern. thereby facilitating a return to private property. In general. The majority of productive farms range between so most of the peasants are very small as mini five hectares. Although government.128. they and the SAIS to abandon collective and sell property ownership Cooperatives small parcels of land. Then we identified products that were high in all three categories and chose the top eleven for presentation. 21 Oct 2013 22:06:01 PM All use subject to JSTOR Terms and Conditions . The reforms broke up large and they remained government. The per unit prices of crops: potatoes.000 producers. over time on the volume these products oscillated of production. corn for human consumption. typically highlands and abbreviated were as SAIS). The reforms agrarian by the creation of state enter accompanied to and commercialize inputs prises agricultural products.92. commercial plantations and redistributed land to agricultural workers and communal farmers. to the Peruvian Center for Social Studies (CEPES 2002). agrarian Products and prices as the ten The ten poorest states of Peru in 1994 continued in 2000. mostly farming and farms who sell their goods nonmercantile (650. suggested by past top-priced products or for local use and do decade. Table 1 lists the top prices declined agricultural products by year to land from 1990 to 1999. (known producers amount in CEPES of land held farm economies 2002). such as Cooperativas Agrarias (Agrarian on the coast) and Sociedades Production Cooperatives.

o o TABLE 1 MAIN PERUVIAN CROPS BY EXTENSION.128. Product VALUE. 21 Oct 2013 22:06:01 PM All use subject to JSTOR Terms and Conditions . Cuanto (2001).92. The tablewas developed by Orlando This content downloaded from 202. AND 1990 Rice Maize hard Coffee Maize soft Potato Cotton Alfalfa Wheat Bananas Sugar cane Yucca 1991 Maize soft Potato Coffee Rice Maize hard Cotton Barley Wheat Alfalfa Bananas Sugar cane 1992 Rice Coffee Maize hard Maize hard Potato Alfalfa Cotton Bananas Sugar cane Cocoa Yucca 1993 Maize hard Potato Rice Maize soft Alfalfa Barley Wheat Bananas Cotton Sugar cane Yucca 1994 Rice Potato Maize soft Maize hard Alfalfa Wheat Cotton Bananas Yucca Corn Lemons 1995 Potato 1996 Potato Rice Maize so Maize soft Rice Maize hard Maize ha Cotton Cotton Alfalfa Barley Bananas Wheat Alfalfa Sugar cane Yucca Bananas Corn Beans Lemons Yucca SOURCE: Ministerio de Agricultura (2001).28 on Mon.

1 "? ? 100 . 21 Oct 2013 22:06:01 PM All use subject to JSTOR Terms and Conditions .28 on Mon.\ ^_-v \ / V c \ \ >?^/ I ?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i? 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 SOURCE: Instituto Nacional de Estadistica e Informatica (INEI). we lack representative micro-level data on income and expenditures must for agricultural producers and therefore trends using macro approximate we economic In terms indicators. in in 1989. As abruptly for agriculture to decline until 1991. not contribute improvement. again in 1990 before stabilizing during the remainder ofthe decade. consider the of exchange between 1. generally contains in the country.CONSEQUENCES OF STRUCTURALADJUSTMENT 101 FIGURE 1 TERMS OF EXCHANGE BETWEEN AGRICULTURE AND INDUSTRY IN PERU. the terms fell in agriculture and industry. when there was a 1987 and continued slight improvement. significant momentum to the economy or generate technological Income and expenditures in Owing to the absence of public agencies charge of planning for the agricul tural sector. The figure was compiled by Javier Iguifiiz and Sofia Castro from various sources. decreased depicted Figure 2. 2001b). we turn to data from metropolitan which Lima. 1970-2000 300 - a 11 \ 200_ V/v. and increased in increased 1987. The terms of exchange remained stable for most of the 1990s but fell back to ratio for levels in 1999.92. The foregoing data offer little evidence of significant improvement in the eco nomic fortunes of under structural examine To agricultural producers adjustment. Figure can be seen. trends inwages. These data allow us to assess the best services and infrastructure This content downloaded from 202. The import-export preadjustment agricultural products.128. 1970-1991 (INEI 1998) and 1991-2000 (INEI 2001a.

a to or minimum is Adequate employment provides salary that equal higher than the This content downloaded from 202. unemployed.5 i 0. and Sofia Castro from various sources. unemployment.5 -y^*> U. adequate employment.'' Ad \_^_^^_ 1976 ?*? . the quality of employment to in 3 shows trends the of according Figure quality metropolitan employment three categories: and underemployment.---"^-\ %%%-. FIGURE 3 QUALITY OF EMPLOYMENT IN METROPOLITAN (DEFINITION OF 1995) 100 -i LIMA. The figure was compiled by Orlando Plaza and Sofia Castro from various sources. 1970-2000 z 60" r 01 20 - ^ 0 40 a %s^\^A''' "" .102 THE ANNALS OF THE AMERICAN ACADEMY FIGURE 2 IMPORT-EXPORT RATIO FOR PERUVIAN AGRICULTURAL PRODUCTS. 21 Oct 2013 22:06:01 PM All use subject to JSTOR Terms and Conditions . 1970-2000 3. and underemployed.28 on Mon. 0 H?i?\?i?i?i?i?\?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i 1970 1973 1979 1982 1985 1988 1991 1994 1997 2000 Adequate Employment Unemployment Underemployment SOURCE: NOTE: In The figure English.92.128.U i i i i i i ^^4 i i i i i i i i i i i i i i i i i i i i i i i i i i 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 SOURCE: FAOSTAT (2002). by Javier compiled are categories adequately was Iguiniz employed. as well as the value of wages in the private sector.

lower was constant over the rate of unemployment level for the next decade. work of at least thirty Although constant the rate of unemployment was three decades. 1971-2000 ^ 120.0 -i IN METROPOLITAN co % % 80.0 " I Z 60. in decline is adequate employment. the 1990s. . the proportion in tandem with the . provides five hours per week. over increased underemployed in decline adequate employment. underemploy ment became the prevailing mode of labor force participation in Peru. wage.0 Nl/ 8 S 40. permits the worker to satisfy basic needs. adjustment. quate employment.0 H?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i?i 1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 SOURCE: Instituto Nacional de Estadistica e Informatica (2000). 21 Oct 2013 22:06:01 PM All use subject to JSTOR Terms and Conditions . the proportion of people adequately suffered employed drastic declines between 1988 and 1990 and then remained at this new.0 - y y^K *r"A V \ S-+-\ ^^ w 0. wages Metropolitan slight improvements.128. decreased In the wake of structural and greater vulnerability. Although three decades.CONSEQUENCES OF STRUCTURALADJUSTMENT 103 FIGURE 4 SALARIES IN PRIVATE EMPLOYMENT LIMA. When we for urban at income power purchasing compared monthly This content downloaded from 202. in parallel with the decline in ade Figure 4 shows that real wages decreased remained with low.0 - | co 100. signifying a substantial and loss of throughout relatively permanent consumers. yielding Underemployment defined as working less than thirty-five hours per week when one would like to access to health care. As Figure 3 shows.92. and offers access to social security. work more and is associated with lower earnings.28 on Mon. in the proportion increased tandem with the underemployed a scissors effect. The figure was compiled by Javier Iguifiiz and Sofia Castro from various sources.0 \ 8 c 20.

between and ade Iguiniz put it.3 percent of the population. unable to counter broader downward [T]he application of structural adjustment in the late 1980s and early 1990s was programs to make a dent in systematic Peruvian unable in 1986. in Consistent with these findings. Only the worsened low either remained products or have are either cocoa beans. quite cannot be lost wages. 21 Oct 2013 22:06:01 PM All use subject to JSTOR Terms and Conditions . long the proportion of workers from adequate Thus. the decline a in income accompanied by slight decline inequality. Even employment were were in to recapture the intense 1982 which and unable 1988. This content downloaded from 202. "The former simultaneity is no guaran has broken down and the growth of investment quate employment a series of worker tee that adequate will improve" (p.28 on Mon. the Table 2 54. year percent again in down broken the incomes workers earned shows by country's major regions by in the income distribution. visible that was already poverty in prices for seven 1989 Figure 5 shows trends agricultural products between cocoa and 2000. strikes. The products include cotton. cotton. continued adequately employed As investment fall. figure Although of struc almost 5 percentage points by 1997. over the most and rice. All display a clear decrease period. of poor in to official tabulations on poverty in Peru.1 it reach tural adjustment. 4). benefitting employment. corn.104 THE ANNALS OF THE AMERICAN ACADEMY two points in time for Lima (not shown). and that exported rice?products there a slight recovery in prices. beans. Thus. wheat. Although the poor performance of the urban economy to structural adjustment. the proportion According decreased at this 1991 stood 53. bananas. in investment Lima increased private although metropolitan considerably during to the share of workers structural adjustment. coffee.92. in the percentile in lower incomes than workers and in jungle areas of Peru earned highlands. though in significant urban consumption?was no case were 1989 prices ever regained. coffee. Indeed. cases or over in of the 1990s. After early declines. we found that the richest metropolitan 10 percent of workers earned 18 times more than the poorest 10 percent in 1994 in wages was and that this differential fell to 14 times by 2000. workers on the coast. steadily employment despite in large enterprises for the loss. he found did not increase to compensate no clear association If between and adequate private investment employment. Iguiniz (2003) found that wages metropoli tan Lima 1970 and that lower decreased after wages. over the term he noted a tendency for private investment to decrease anything. As can be seen. five years after the implementation in once rose to 2000.128. the program was at the very least atributed categorically economic trends.

00.-1 1989 1991 1993 ?'50" \ /^^^N ^^^^^N 1995 1997 1999 0. Hard Maize Price: 198902000 0.00-I-1-1-1-1-1-1-1-1-1-1-.40 -I 0.\ /* /\ mr^m\^/*?"?N ^ 1-00.101.50-1 Banana Price: 198902000 aoo-l 2-501/50\ \ \ ^^^ ?-4?\ 0.20 - \ V ^Ss*^^Vv-A? ? ^^A?A^_ 0.00 -I-1-1-1-.V 0.00-I-1-1-1-1-1-1-1-1-1-1-1-1 1995 1997 1999 5.00-I-1-1-1-1-1-1-1-1-1-1-1-1 1989 1993 1991 1995 1997 1999 Cocoa Price: 198902000 4. 0. these data suggest that the application of structural adjustment programs in the late 1980s and early 1990s was unable to make a dent in system atic Peruvian poverty that was already visible in 1986.50 0. 3.30?-2?- VA"*^^^ ^ r^^^ ?"^^^\ ?#^#^*^? 0. _^k /^N/ / \ ^^ ?* / 1995 1997 1999 1991 o.00\ 0.28 on Mon.001 \ Coffee Price: 198902000 0. the Peruvian econ level of performance.50- N^hv h~~+ 400~ ^-'-H^^\H_---+---+--__.00- \ x j..00\ *???????? 8-00 7.80-.*--* Wheat Price: 1989-2000 1.001993 0. characterized omy was stabilized at a very low and precarious This content downloaded from 202. n K 6.301989 0. the economic and dislocation that adversity accompanied Taken together.128. the highly urbanized structural adjustment.700.20-2.40 .00-I-1-1-1-1-1-1-1-1-1-1-1-1 1993 1989 1991 1995 1997 1999 ? u ^.-.50-1 \ 1.60-i N.CONSEQUENCES OF STRUCTURALADJUSTMENT 105 TRENDS FIGURE 5 IN PRICES FOR SEVEN AGRICULTURAL PRODUCTS 1989-2000 (IN CONSTANT 1994 SOLES) Cotton Price: 198902000 Rice 0.\\ 0.70 - IN PERU.20.000.50. Price: 198902000 2.^ 0.80 0-60 1 0.001 0. In other words.OO -I-1-1-1-1-1-1-1-1-1-1-1-1 1989 1993 1991 \/^? 1.92. 21 Oct 2013 22:06:01 PM All use subject to JSTOR Terms and Conditions .300.40 -i 1. Rather.-1-1-1-1-1-.-1 1989 1991 1993 1995 1997 1999 0.80 0.00-1-1-1-1-1-1-1-1-1-1-1-1-1 1989 1991 1993 1995 1997 1999 area of Lima was better able to resist Lima.

and community kitchens (known as Comedores The people served by these programs were primarily urban. policy. to in for the the provision of food assistance to government enough begin engaging almost half of the Peruvians six years the implementation of structural adjustment.106 THE ANNALS OF THE AMERICAN ACADEMY TABLE 2 AVERAGE MONTHLY PER CAPITA INCOME: PERU. The three largest programs were the Vaso de Leche. given technological they us in other countries. let this advances Against explore the income background. technological a or a not have an agrarian strategy for rural development. tural products but also a withdrawal investment of significant or technical assistance.320 993 758 1. institutions providing food assistance and Table 3 lists the various government the number of poor people they served during 1998. and the loss of ade a to situation These dire trends of food insecurity that was severe led quate jobs. usually fall and productive behind. by widespread impoverishment. in the price of farmers faced not only a decrease agricul in infrastructure. school breakfasts.904 370 478 749 748 988 1. data were and expenditures in four representative Peruvian departments: from surveys conducted obtained Piura (the coast). with twenty-five This content downloaded from 202.128. The analysis distin farmers interviewed lands). the high subsidies provided by indus to their own sectors undermined trialized country governments the agricultural situation of Peruvian farmers. the Peruvian government 14 million declared that there were publicly a total in 26 of of food around need (of million) population people supplements. 1994 (NEW SOLES) Poorest Richest Richest Richest Average Metropolitan Lima Coast?urban Coast?rural Highlands?urban Highlands?rural Jungle?urban jungle?rural 342 229 154 203 109 216 122 10 Percent 72 50 27 37 18 38 27 10 Percent 1. Cuzco (the cities) and Puno (the high at each place. people did In the countryside.649 488 708 1. lagging prices. meaningful policy for international trade of agricultural products.28 on Mon. indicates urban that again. which vitamin to children supplements provides milk and and the elderly.583 5 Percent 3.92. of small farmers in 2002. Given that the country did improvements.929 1 Percent 489 601 801 672 895 1. San Martin (the jungle). Income and expenditures among farmers National ply unable economies and household stabilized at precarious levels are not sim to grow. 21 Oct 2013 22:06:01 PM All use subject to JSTOR Terms and Conditions . which. not suffer as much as those in rural areas.891 1.894 SOURCE: Castro and Plaza (2004). Populares). As already mentioned. falling wages. In 1998.

28 on Mon.128.443 Children Comedores and Adolescents Populares at Risk (Popular 17. When we did this (see the bottom section of Table 4).378 NINOS (Children) 7. 21 Oct 2013 22:06:01 PM All use subject to JSTOR Terms and Conditions .057 Child Food Program 244.031 PACFO 240.325 de Estadistica here are e Informatica (INEI. being by Table 4 shows that the annual income does not reach an adequate level within income is recorded in Piura among farmers in any state or stratum.962. Additional statistical data?not reported in this table?indicate in income is not due to farm size but that the difference rather to the type of agricultural product (whether for sale or self-consumption).938 PRODESA 55.875 soles).92. agricultural activity outside nonagricultural remittances from absent household members. and the lowest is recorded in the smallest farms (2.141 842.180 5.9 tural activity for monetary income generation and San percent) Additional This content downloaded from 202. activity.954 PROSIERRA 24.354 School Food Program 745.436 institutions international and national to household and nonmonetary contributions well guishes between monetary size and stratifies farmers of farm.201 soles the middle in Puno annually).844 Vaso de Leche (Glass of Milk Program) 10. is the composition of understanding by examining provided comes its various it whether from the income. or activity. in the agricultural the degree of specialization activity. 1998 Number Institution Program Beneficiaries of PRONAA Wawa-Wasi Project 28.052. 2000). regardless of farm size. The highest stratum (22.500 PANFAR 401. 95.212.686 Kitchens) FONCODES MINISTERIO DE SALUD Supplementary Food Program School Breakfast 50. and the socioeconomic context in which the farm functions. we discovered the great importance of the type of agricul in Piura (81. relief organizations.378 PANTBC CARITAS CARE ADRA OFASA PRISMA MUNICIPALITIES Total SOURCE: NOTE: The Instituto Nacional listed 94.NUMBER TABLE 3 OF PERSONS BENEFITING FROM FOOD AND NUTRITION PROGRAMS: PERU. distinguishing origins: agricultural a an the farm.000 1.922 PROMARN 4. Also low are the incomes of farmers among farmers in Cuzco.083 NUTRICIONINFANTIL (Child Nutrition) KUSIAYLLU 25.

0 Piura 2.043.520.069.0 1.0 Cuzco 1.0 Puno 293.0 0. 2001- Nonagricultural Income Region Absolute (in new income soles) Remittances from Absent Family Members Ag (Supplementary Occupation) Stratum 1 (< 1 hectare) Piura 3.128.0 100.0 Stratum 2 (1-2 hectares) Puno 2.3 San Martin 4.28 on Mon.0 0.0 Cuzco 2.330.493.3 San Martin 3. SMA PRODUCERS BY REGION AND STRATUM.0 Martin 480.048.7 666. 21 Oct 2013 22:06:01 PM All use subject to JSTOR Terms and Conditions .198.0 0.0 0.0 2 1 This content downloaded from 202.207.92.836.6 55.440.o 00 TABLE 4 COMPOSITION OF AVERAGE ANNUAL AGRICULT AND NONAGRICULTURAL MONETARY INCOME.0 1.486.0 163.0 1 Stratum 3 (3-5 hectares) San Piura 1.0 Puno 2.856.0 Cuzco 1.0 966.7 200.

3 Martin 63.5 Piura 57.9 43.3 0.4 0.3 0.6 91.6 100 6.0 Cuzco 27.0 3.3 Piura Martin3.0 10 3.2 0. 57.8 100 6.9 Piura Martin27.4 100 0.1 and Sofia Castro fro o CD This content downloaded from 202.0 Stratum 2 (1-2 hectares) San 71.9 SOURCE: Castro and Plaza (2004). Stratum 3 (3-5 hectares) San 24.0 2.6 Cuzco 10.7 34.3 33.3 6. The table was compiled by Puno Orlando Plaza 13.469.128.92.7 2.Percentage of income Stratum 1 (< 1 hectare) San 35.7 Cuzco 10 0.28 on Mon.0 Puno 9. 21 Oct 2013 22:06:01 PM All use subject to JSTOR Terms and Conditions .2 86.0 90.2 25.6 Puno 8.1 0.

128. As already noted. or stunting. further technology and poverty.9 dollars a day. children younger During level of and measured. Indeed. whose producers in farms.92. In income derived from farming activities increases with the size of landholding. Peruvian farmers are barely making Regardless income per capita ranges from $0. reflected in a shorter height than normal for the child's malnutrition or in less weight than normal for the reflected age.3 percent) (41.2 to 27. and those in stra day.2 percent).0 percent).50 to $2.3 and 2.8 percent). In Puno Cuzco and contrast. of stratum a This content downloaded from 202. who survey we poor up majority producers 0. The largest propor tion coming from family remittances is in Puno across all strata (ranging from 10.5 dollars a conducted showed that farmers in stratum 1 earn between in stratum 2 earn between 0. though such food programs Martin concentrate in urban areas. daily highly or better seeds does not take in likely that investment place. proportion only sources are more income from nonagricultural important. generates agricultural production a small in stratum 1 of Cuzco of income. but in to meet of the the demands Peru these are generally insufficiently developed a of Peruvian The make rural farmers. satisfy producers in comparison with the 1990s. and global malnutrition weight underweight. We determined the time of the interview were weighed the formula devised by the World Health Organization: malnutrition following in comparison with the of children below two standard deviations the proportion identified: chronic have been rest of the of malnutrition Three types population. in the or reflected child's height. those tum 3 earn between 0. (67. What that such strategies have not changed much is the intensity of family labor and the extent of has changed over the decade to reduce in of urban products tasks the consumption engagement multiple and/or to seek refuge by increasing self-consumption. 2003). a Small agricultural and farmers generally spend high proportion producers of their income on goods (except for stratum 3 of San Martin). nonenterprise which may be considered peasant economies. and Puno.6 and 1. it is Since their living.28 on Mon.110 THE ANNALS OF THE AMERICAN ACADEMY fall into the classification of mercantile. great effort goes into supplying the impoverished the food needs of residents.5 dollars a day. the proportion of consumption. at than five years of age present the same survey. A better policy solution might have been not to deregulate the market but to with rules of exchange or foster the emergence formal of a monetized economy to increase to remedy the lack of infrastructure by providing technical assistance are laden with measures Structural implicit assumptions production. but farm families of Cuzco and Puno also spend a great deal of income in growing food for self The data reveal that across all strata and states.4 and 2. acute malnutrition wasting. 21 Oct 2013 22:06:01 PM All use subject to JSTOR Terms and Conditions . adjustment of other types of economic about the existence agents and institutions. states such as Puno and Cuzco. see At the time of Maletta relative to the child's age (for further details. and state location. many of these families receive some tend to type of food assistance from the state.90. The the small rural farmers in situations of disadvantage placing sources reflects different income that farm of strategies varying composition use to It is likely their households and small commercial needs. (42.

adjustment. Since respectively). ing supply production costs of the who absorb social (Guzman 2002. (1995). their in rural areas. greatest reproduction particular.CONSEQUENCES OF STRUCTURALADJUSTMENT 111 we visited. In their review of four studies (one in Latin America. fifty-four children were measurement of the and height found that 63 percent of the children's weight an untenable children presented either one or two types of malnutrition. few agricultural gather data on the gender of agricultural producers.7 and agricultural women have a much lower level of 5. Deere and Leon that women who declare (2003). and two in Africa). women generally in state and market provisions for deficiencies end up compensating by increas in it is of for the food their and rural and women. another in the Caribbean. Furthermore. The inferences that we adjustment can make about Peruvian women in the small farm economy is that they unduly bear the burden of growing food for subsistence and have children whose health This content downloaded from 202. Rural women as transnational created and and (in mining corporations tryside agroindustry) Native and Americans local elites use force to dislodge from their peasants traditional lands to gain control of subsoil resources de (Red Internacional Genero y Comercio Frente 2003). The located in the households the survey. and none asks who in the household is the legal landowner (Deere and Leon 2003).128. following crisis and economic could not be separated. According most official and international statistics define households headed by heterosexual as male-headed and classify them as female-headed couples only when the eldest a woman a a or common in not is and does live she with person dwelling legal censuses in Latin America law husband. data from a small sample of farmers (871) drawn from the They also considered Encuesta Nacional de Niveles de Vida (fielded in 2000) and found no statistical in the amount of difference land owned by women and men (4. pro portion by most standards.92. are also vulnerable to increasing violence in the coun Cea 2002). families. in their review of Haddad gender and economic adjustment. Structural and gender adjustment are structural adjustment the ones who Under programs. especially they at home.28 on Mon. statistics nor micro-level neither macro-level survey data Unfortunately. 13 percent are owned solely by women. for women's situation must be quite precarious is asso land ownership ciated with having a greater role in both household and farm decision making and with lower rates of domestic violence. and 74 percent are owned solely by men. on the effects of found that intrahousehold seldom analyses provide direct data structural adjustment and that most findings derive from a handful of community based studies. to enable us to explore the situation of women Chant (2002). literacy than own less land than men. acting on the assumption on an as the themselves farmer farm are in fact the principal owner-operated ofthe owners. 21 Oct 2013 22:06:01 PM All use subject to JSTOR Terms and Conditions . found that in Peru 13 percent of farms have joint ownership land. et al. and given that men. in the welfare three showed declines of women In structural the fourth the economic of effect case.5 hectares. in Peru.

Although stable. which suggests that both boys and girls are being affected equally by the poverty they face. Although its size has remained ment stable since the late to 30 percent nation's of the and close 1980s. At the same time.112 THE ANNALS OF THE AMERICAN ACADEMY to illness and stunted develop and nutritional conditions leaves them vulnerable ment. during the years when were In Peru. rural areas have and underemployment." While models. along with several other scholars who have closely fol Henriquez lowed structural adjustment programs in Latin America. the largest urban concentration was in rural areas and to maintain its inhabitants for than possible higher wages even witnessed a in the gap between the wealthiest and poorest decrease slight households. it did so at precarious levels characterized poverty by widespread In this panorama of material desolation. 21 Oct 2013 22:06:01 PM All use subject to JSTOR Terms and Conditions . was mosdy in the form of food sup not programs that would enable women to enter the plements. growing economic of the document poor agricultural producers together performance structural adjustment policies were applied. women can be expected to have borne burdens inside and outside the house hold that are still unmapped and undertheorized by contemporary analyses. however limited. The absence of specific strategies geared reducing basic safeguards an both on the part of toward small agricultural producers assumption. structural adjustment differentiated applied without policies investment to economic foster and improved management strategies technological have had little positive effect on agricultural producers. As a result. they did so at whereas wages were in 1990. and. as anticipated by structural adjust ment measures. betrays This content downloaded from 202. productive sphere in more in rural areas seem to have been well below Women conditions. however. Conclusions Over the past two decades. it is clear that Peru as a of and "repiimaiization" whole has gone through a process of deindustrialization the economy. however. ously.92. Lima experienced rapid growth of employ in the informal sector. stated that "with neoliberal it is unde social concerns were relegated to the emergency niche. and consequently Instead. increasing self-consumption. it is poorest niably helping also the case that this support. declining problems reliance on nonagricultural income. employs in Lima's private sector also stabilized after 1989. (2000. Lima. just 25 percent of what they Given the sizable increase in Lima's informal sector. looking at the agrarian sector from the viewpoint ofthe in Peru?small vast majority of and landholders? producers agricultural workers as serious such documents deteriorating agricultural prices. Existing educational statistics broken down by sex do not indicate a reduc tion in the participation of girls in basic education. was able suffered the most. simultane All these indicators food vulnerability and child malnutrition. ofthe country. to increase the economic vulnerability of most Peruvians while have tended they to a minimum. it nonetheless workers. Our analysis.128. 14). advantageous the radar screen of policy makers responsible for social safety net programs.28 on Mon. the agricultural of Peru has not per economy it did become formed well. true that social services were limited to of the the poor.

According on on the culture and educa in turn investment. which cannot be accomplished with macroeconomic struc policies alone. structural adjustment policies do not directly engage the as an economic agent. Although tural adjustments may be necessary.92. are institutionalized is needed are and well developed. into the market subsistence farmers are integrated differing in the means in the labor force. Under these is not how to integrate the key problem into circumstances. by which they sell their production. conditions for the majority of people who work in the countryside improve. which depends technological tion. Rather. agricultural producers the market or how to open rural markets but how to improve the conditions under which they become integrated into markets and how to improve their functioning. the lack of productive and management suitable technologies to their situation. Small producers and gies that recognize in a variety of ways. As currently applied. It is to and farmers producers change mostly because ofthe type of land they occupy. tradition. 21 Oct 2013 22:06:01 PM All use subject to JSTOR Terms and Conditions . What policies and strate the diversity of agricultural producers. nonagrarian they enable them to continue farming. reex to be need and they reconceptualized in terms of the actual of the pressed organization apparatus. competitive though burdened by policies. Without without modernization a serious updating of market ofthe will not relations and infrastructure. are filtered producer they through real conditions of structures and social under which the production by policies operate. Most small produc knowledge ers in Peru on human energy assisted traction and on rather animal depend by trial and error?in other fragmented technological knowledge acquired through words. apply inputs for pro earn in which and even in the manner income to duction. in economic to specialists however.28 on Mon. growth depends development. acquire food products. and the institutional weakness in rural areas.CONSEQUENCES OF STRUCTURALADJUSTMENT 113 international that their economic needs lending institutions and the government. The productive This content downloaded from 202. This of markets situation will not be reversed that all producers face equal simply by assuming state conditions and that the markets. Technological innovation is positively correlated with the application of new sources of energy and to the productive process. are similar to those of industrial firms. participate enter into contractual arrangements. situation in Peru is not due to any reluctance of The deteriorating agricultural or take risks.128.

social differentiation" of structural (Samoff 1999. Lima: Banco Central de Reserva del Peru. de Intervencion. Lima. Castro. Cea. Lorena. Manuscript. poverty can be to Without increased productivity expected expand revenues. Peru: Proyecto Asesoria Peruano de Estudios Sociales. The political dimensions therefore be recognized. a serious and without of the for the conditions infrastructure. way. including the size of the civil service. social services. of the strategy was similar: a decreased role for government in reduction the size of the civil service.114 THE ANNALS OF THE AMERICAN ACADEMY revitalization of markets will occur only if people have enough money to enter the not same in that all markets cannot function One the economy. Peru: Pontificia In Pobreza en Planeacion the 20th into en de Ayer y la Pobreza de Hoy: ^Miradas de Forma o Fondo? 79-93. Bulletin of Latin American From This content downloaded from 202. Encuesta Universidad Catolica del Peru. Peru is currently moving into an era of and decentralization that will prove very demanding. for of fail lack local further. CEPES. Memoria a Anual del BCRP. Sylvia. a reduction in the privatization of state responsibilities. of foreign Given current relations of power between it is an and developing countries. 79). experience productive now-developed sectors mind. the main enforcers of the interests of industrialized countries were international financial institutions. productores rurales. La Economia Campesina Lima. merely "the interests reflect tensions conflict of and the processes. protectionist protecting policies comes to countries of several The system. sector are those that Those countries able to develop a successful agricultural on have enacted focused their self-centered." as it "offered access to capital in for the adoption of externally and the sur exchange specified national policies render of some national autonomy" (Samoff 1999. families and households Researching Research 21:545-75. organization patterns of production. Santiago. de la GTZ/Centro Agraria Chant. 2002. 21 Oct 2013 22:06:01 PM All use subject to JSTOR Terms and Conditions . 59). the liberalization of financial markets. Countries their agricultural such as France and Japan protected as them to conform with well-established international seriously they reorganized norms and universalistic Without of market modernization relations procedures. making regionalization References Banco Central de Reserva del Peru. 2004. La Pobreza Chile. They invariably structure the the of of and among power. poor help knowing strong understand more the under which small farmers and productive system operate deeply to understand how structural or adjustment policies might work with it against it. majority updating of people who work in the countryside will not improve. and the encouragement investment. the 21st Century. programs must adjustment By the 1990s. developed can to whether structural be work open question adjustment policies reconfigured in the interests of the third world.28 on Mon.128. "Structural adjustment became both the description and the content of the imposition of that external control. 1999. in Latin America: gender. Sofia. and Orlando Plaza. are not It is now well known that state policies technical apolitical. 2002.92. Chile: Editorial ARCIS. by assuming a the to without them remains and there need well. The proportions of the mix may have varied across countries but the content a in the economy. regionalization in rural areas. 2002. Estrategias en la Ultima Decada.

Hector. 2003. Agricultural statistics. 2001. social movements. Cuadernos de y Politicas ARCIS. Seguridad Alimentaria. La Equidad de G6nero Guzman.org. Lima. 1999. and Lisa Smith. 2003. Economics Iguiniz. Peru: INEI. y Comercio Miami. 1999. pp. La Cuestion Social y la Mitad Critica: Ciudadania Movilizada Hennquez. y de Politicas Prdcticas 147-69. 2003. Resultado on Living (INEI). Series estadisticas rurales. Sociales. el Estado: Estrategia Economica Wise. Virginia. 2000. economicas y del Curso Toliticas Maletta. Peru: Proyecto Cisepa/PUC/FAO. of economic Lawrence. 2001a. Boulder. Frente. 31:925-47. Survey. 1998. Red Internacional Frente de Genero a la Reunion de ajuste en cuatro sobre regiones los ingresos del Peru. Javier. The dialectic ofthe global and the local. Democracia Sociales. The state.92. Comparative 91-113. Lima. Lynn Brown. Leon. en las Condiciones 2000. Deere. education. 21 Oct 2013 22:06:01 PM All use subject to JSTOR Terms and Conditions . 8-14. Lima. de una Encuesta Nacional de Familia. FL: Area de Libre Comercio In Comparative international influence. Peru: Cuanto.128. Joel. of Peru. 1995. Boulder. and Magdalena Diana. y egresos de las familias campesinas y de pequeiios agrarios. Orlando. 2003. como Tema de Debate 2002. Estadistico Lima. and educational reform.fao. Peru: INEI. 2003. World In Publicas. Oferta y Demanda Global.fao. Desconexion Department. 2003. Andrea Richter. CO: Rowman & Littlefield. Peru: Ministerio de Agricultura. asset gap: Land in Latin America. Ministerio de Agricultura. CO: Rowman & Littlefield.CONSEQUENCES OF STRUCTURALADJUSTMENT 115 Cuanto. 2001. Notas Metodologicas Lima. The dialectic Samoff. productores Lima. The gender Development FAOSTAT. Compendio Financiero. Raymond. Peru: INEI. Chile: Ediciones Haddad.28 on Mon. http://faostat. Tecnica para la Formation Proyecto Regional de Cooperation en Economia Rural en America Latina. The gender dimensions to date. Desafios Pendientes. de Estadistica e Informatica. Informe de investigation: El impacto de las politicas Plaza. Santiago. Reinventando y Cambio Institucional Peru: Universidad del Pacific. In Morrow. La Red Internacional y Comercio del Area de Libre Comercio de las Americas Ministerial de las Americas. Carol. Impacto de los Programas de Apoyo Alimentario de Vida. World Development interaction and evidence 23:881-96. ed. Robert Amove and Carlos Torres. and Carlos Torres. education. en el Peru.rlc. 2002. Peru: Instituto -. Robert Amove and Carlos Torres. Lima. -. Catholic University e Informatica Instituto Nacional de Estadistica Nacional -. 1997-1998 Support Programs (Impact of Food Conditions: Results of a National Household Lima. y Politicas Agrarias y de Desarrollo www. 1997-1998). ed. Manuscript. adjustment policies: Potential o Masa Cautiva? Narda. 2001b. Manuscript. Cuestion de Estado. de Genero en Miami. This content downloaded from 202.org/proyecto/ fodepal. Institutionalizing of the global and the local. entre economia y empleo adecuado. Oferta y Demanda Global. Carmen Peru en Numeros 2001. Lima. Peru: Food and Agriculture Organization.