Lima Consensus

The term 'Lima consensus' (created by analogy of the term Washington Consensus) refers to a set of economic policies that have been predominant in Peru since the presidency of Alberto Fujimori. These policies are characterized by their neoliberal, deregulatory, primary-exports-based model of economic growth, and free-market orientation. They are staunchly supported by the country's economic elite. The nomenclature 'Lima Consensus' was attributed to Steven Levitsky, a professor of government at Harvard University.

These measures have been instrumental in making the country an appealing destination for foreign portfolio investment. Critics point to a rise in economic inequality, an increase in crime rates, and the perpetuation of corruption as some of the negative consequences. Additionally, labor rights have suffered, often being sidelined in favor of market liberalization and capital interests.

Proponents of the Lima Consensus are often labeled as free-market fundamentalists. They typically resist any form of economic interventionism, quickly branding such measures as socialist or communist in nature. The Lima Consensus is considered a more radical iteration of free-market policies due to its aggressive promotion of liberalization, coupled with a minimal—and frequently ineffective—level of state regulation or institutional reinforcement.

In contrast to the broader Latin American trend during the early 2000s, known as the 'pink tide,' which saw the ascent of several left-wing governments, the Lima Consensus has faced no substantial political opposition since its inception in the early 1990s. The presidencies of Pedro Castillo and–to a lesser extent–Ollanta Humala are often cited as exceptions, although the Consensus continued to prevail afterwards.