Hello das2, sorry for the late reply. Yes, it was down to Fujimori.
It's true that Fujimori is in jail right now, but not for corruption. He's in jail for his overzealous approach to the antiterrorist campaigns that took place in the early 90s.
When the Sendero Luminoso (Shining Path, a Maoist terrorist group that nearly managed to overthrow the state in the late 80s/early 90s) were at their peak, Fujimori came to power. Very shortly thereafter, the SL hijacked the Japanese embassy on a night when they had a big event on, kidnapping everyone from the Japanese ambassador to the directors of large Japanese corporations (Toyota, Sony, etc.).
Fujimori ordered a replica of the embassy to be built in the desert, and special forces trained there for weeks in preparation to storm the embassy. The operation was a great success, the kidnappers were killed, only one soldier died, none of the hostages died.
High on this amazing success, Fujimori ordered more campaigns against SL, and managed to pretty much eradicate them from the country. Two campaigns, however, did not go as planned. One at a university called La Cantuta, one in a poor district of Lima called Barrios Altos. Innocent people died in these campaigns, which had received his direct, personal go-ahead. That is what he went to trial for, and the reason he's in jail now.
Fujimori took over when the state itself was a failed state: hyperinflation of both the old Sol and the new Inti, had all but destroyed everyone's savings, political processes were sclerotic, there was enormous bureaucracy, no foreign investment, etc. Fujishock, as it has come to be called, was the process of undoing all this. Fujimori created the new Sol currency which has been a very stable currency ever since. Parliament was closed and replaced with one single congress and a super-simple process of election that elects both the percentage of parliamentary representatives and the president. Bureaucrats were sent home and the machinery of government simplified a great deal.
A lot of investment went into infrastructure, too: where it used to take more than a day for a farmer to take his produce to the nearest city, it can now take just 3 or 4 hours, which means they don't just go once a year but once every month, which puts them more in touch with the market and more responsive to price signals. Many things that would take forever to start (companies, brand registrations, etc.) can now be done online in a couple of days. The country has seen between 6 and 9% annual growth ever since the mid-90s, reducing poverty from over 50% to around 20% today.
Some corrections about the "embassy" crisis... It wasn't SL, it was Tupac Amaru. It wasn't an embassy, it was an official residence. 1 hostage and 2 soldiers died... It's all on wikipedia.
It's true that Fujimori is in jail right now, but not for corruption. He's in jail for his overzealous approach to the antiterrorist campaigns that took place in the early 90s.
When the Sendero Luminoso (Shining Path, a Maoist terrorist group that nearly managed to overthrow the state in the late 80s/early 90s) were at their peak, Fujimori came to power. Very shortly thereafter, the SL hijacked the Japanese embassy on a night when they had a big event on, kidnapping everyone from the Japanese ambassador to the directors of large Japanese corporations (Toyota, Sony, etc.).
Fujimori ordered a replica of the embassy to be built in the desert, and special forces trained there for weeks in preparation to storm the embassy. The operation was a great success, the kidnappers were killed, only one soldier died, none of the hostages died.
High on this amazing success, Fujimori ordered more campaigns against SL, and managed to pretty much eradicate them from the country. Two campaigns, however, did not go as planned. One at a university called La Cantuta, one in a poor district of Lima called Barrios Altos. Innocent people died in these campaigns, which had received his direct, personal go-ahead. That is what he went to trial for, and the reason he's in jail now.
Fujimori took over when the state itself was a failed state: hyperinflation of both the old Sol and the new Inti, had all but destroyed everyone's savings, political processes were sclerotic, there was enormous bureaucracy, no foreign investment, etc. Fujishock, as it has come to be called, was the process of undoing all this. Fujimori created the new Sol currency which has been a very stable currency ever since. Parliament was closed and replaced with one single congress and a super-simple process of election that elects both the percentage of parliamentary representatives and the president. Bureaucrats were sent home and the machinery of government simplified a great deal.
A lot of investment went into infrastructure, too: where it used to take more than a day for a farmer to take his produce to the nearest city, it can now take just 3 or 4 hours, which means they don't just go once a year but once every month, which puts them more in touch with the market and more responsive to price signals. Many things that would take forever to start (companies, brand registrations, etc.) can now be done online in a couple of days. The country has seen between 6 and 9% annual growth ever since the mid-90s, reducing poverty from over 50% to around 20% today.