During the decade of 1980, Peru faced a strong economic and social crisis, due to the lack of control of fiscal spending, a considerable external debt and the growing inflation together with an internal armed conflict, caused by the insurrection of the Shining Path terrorist groups and the Túpac Amaru Revolutionary Movement of communist inspiration, which sought to seize power through armed struggle. Terrorism obtained a repressive response from the Armed Forces, the Police first and the Army later. The fighting between both sides caused the death of about 70,000 people among combatants, peasants and city dwellers.
To this it is added that Peru faced Ecuador in the False Paquisha conflict in 1981, during the second term of President Fernando Belaúnde Terry, Peru denounced the attack on one of its aircraft that was carrying out a mission of supply for posts of border surveillance on the Comaina River. The Peruvian president Beláunde, ordered the inspection of the river until its birth located on the eastern side of the Cordillera del Cóndor. In this inspection, three Ecuadorian detachments were found with separate installations in Peru considered territory by the Peruvian government according to the previous treaties. These detachments had captured the former observation posts Nos. 22, 3 and 4.
The Ecuadorian position indicated that these detachments corresponded to the base of “Paquisha” established in Ecuadorian territory. But, after the measurement of the coordinates, it was found that they did not correspond to the aforementioned Paquisha accepted in the Protocol of Rio de Janeiro, but, as Peruvian President Belaúnde described it, to a “False Paquisha”, a name given to distinguish it. easily from the first Paquisha that was legal according to the protocol.
Peru prepared a contingent to recover the position, with the help of its armed forces such as the FAP and the Army. On January 30, 1981, the Peruvian troops recovered the “PV-22” (False Paquisha), the next day they recovered the “PV-3”, and on February 1, 1981, they recovered the “PV-4” (New) or “false Mayaico”.
For that day, the conflict had apparently ended but then the Peruvians discovered that more troops from Ecuador had been established in 3 other military posts and in 3 points of the northeastern border of the Cordillera del Cóndor and were the posts “PV El Mirador”, “PV-4-A” and “PV-4-B” (Old).
On February 19, 1981, the Peruvians recovered the “PV Jiménez Banda 2” (Falso Machinaza) and the following day, on February 20, 1981, the “PV-4-A” and “PV-4-B” (Old). On February 21, 1981, the Army Aviation of Peru destroyed the last military installations of the Army of Ecuador that were still in the Peruvian territory.
Ecuador sent numerous guerrilla divisions, but these were repulsed and eliminated by the Peruvian troops who claimed victory.
At the end of the race, President Belaúnde raises the Peruvian flag in that area. These movements aggravated the border conflict between the two countries. Belaúnde also supported Argentina with the sale of arms and ammunition in the Falklands War.
The crisis entered its most critical phase at the end of the decade, during the first government of Alan García, when the country suffered a strong economic crisis due to the lack of control of fiscal spending and the resulting hyperinflation that reached a maximum of 7.649% in 1990, While Sendero Luminoso ventured into the country’s large cities, initiating the hardest phase of the internal armed conflict.
The first government of Alan García ended in the middle of a growing unpopularity. In the 1990 elections, there was a close contest between the liberal writer Mario Vargas Llosa and Alberto Fujimori, who won the presidency. From the beginning of his term he found strong opposition in Congress from the Popular Revolutionary American Alliance and the Democratic Front. In his first year, he applied a policy of shock to which he had refused during his electoral campaign, which became known as the fujishock. Eventually, he implemented a series of neo-liberal reforms, aligning himself with the Washington Consensus. In parallel, presidential adviser Vladimiro Montesinos was appointed head of the National Intelligence Service of Peru, position from which he led the kleptocracy in which he led the government of Alberto Fujimori.