Burns: pp. 289-296, 301-313
General
The agents for in any society (state) are the revolutionaries, the reformers and the military. Since the wars of independence in most South American countries, the military has played a significant role in development. The military form of government, however, is costly to a country in a number of ways:
- The military absorbed large portions of the national budget which otherwise could be used for development.
- Officers made far reaching economic decisions for nations which determined the extent of growth (or lack thereof)
In addition, the military has been a defender of the nation and public order. At the same time, been an alternate government, exercising real political power. The military, right or wrong, has not enjoyed a savory reputation. The most recent trend has been to connect the military to contraband trade (drug trafficking) or being associated with the American government.
By and large, the military has been associated with the maintenance of the status quo and served the middle and upper classes. Military governments have also been the agent for change and even provided popular government. Probably the best example is Juan D. Peron of Argentina. Military government have made forms such as:
- increased national autonomy
- diversification of international trading partners & source of credit
- more independent foreign policy
- land reform
- nationalized foreign business
Both Brazil and Peru seemed to offer the best examples of contrasting philosophies of change through the military. From 1964-85, Brazil had a growth rate of 10% and was the worthy model of change. Some the other reforms of the military included:
- Strengthened capitalistic institutions & highly centralized power, depoliticization of people
- Approved foreign investments
- Controlled inflation
- Concentrated economic growth in consumer industries
- Focused on industries and neglected agriculture
The biggest change that produced the “economic miracle” was in the areas of the Southeast and especially in consumer/exported goods. It was in the areas of industrial reform that caused problems in agriculture, producing dependence and disproportionate food prices. the Military in Brazil consumed itself with an increase in the GNP while at the same time, neglected social objectives. Despite Brazil’s impressive growth rate, the rich got richer and the poor got poorer. By 1974, the richest 10% of the population absorbed 75% of the wealth while the poorest 50% got less than 10% of the wealth. This is what the Generals referred to as the “economic miracle”
Peru
In Peru the military became the agents for social reform. Since the days of Pizarro, a small elite from Europe controlled the poor Indians. In fact, 1% of the landowners controlled 80% of the useable land. It was the military who became sensitive to the social, economic and political disparities of their own country. The world for the economic of Peru would be called feudalism. As a result, the military in October 1968 under General Juan Velasco Alvarado deposed President Fernando Belaunde Terry. Immediately, the military went about making “non-capitalist, non-communist” reforms. These included:
- Transformed land structure (Land Reform)
- Large/efficient estates were not broken up but run by workers as cooperatives
- Invested millions in rural infrastructure
- Initiated large-scale irrigation projects to bring barren lands/open Amazonians hinterlands under cultivation
The result was an increase yearly of 1.6% in the GNP from 1969-1974.
In areas other than the economy, the military emphasized Peru’s Indian past, made Quechua the official language, and taught Indians history in the schools. These reforms were made in relative freedom without having to arrest the political opposition. The military, however, disbanded former principal political parties and did not have free democratic elections until 1980.
By September, 1975, General Velasco was replaced in a military coup because of his radical reforms. His accomplishments were:
- Land reform
- Reduction of the power of the traditional oligarchy
- Nationalization of major resources
- Expanded economic role of the state
Gradually the military lost their commitment to reform and in 1980, Fernando Belaunde Terry returned to power.
In returning to power, Fernando Belaunde Terry was faced with huge economic problems. Free electiosn and democratic government could not find any solutions. The national debt had reached 16 billion and the country was bankrupt. As a result, opposition came from a new guerrilla movement called the Shining Path or Sendero Luminoso.
The military governments in Brazil and Peru on the surface seems