From Business Associations to Business Groups: Business-Government Relations and Corporate Networks During the Military Dictatorship, Peru 1968–1980

Abstract

Between 1968 and 1980, Peru was governed by a military dictatorship. But unlike their regional counterparts, Peru’s military leaders introduced a radical program of social and economic reforms that entailed, among other measures, the nationalization of multinationals, the creation of a series of new state-run firms, and an agrarian reform process. In their drive to modernize the nation’s economy, the junta equated economic growth with national security. To pursue this ideal, the regime had to pursue an alliance with the business community. However, business figures were wary of the government’s radical discourse and its disregard for private ownership. In this chapter, we focus on the Peruvian corporate network to analyze how the relations of simultaneous collaboration and distrust between Peruvian businesses and the military government shifted centrality within the network away from Peruvian business associations and toward the economic groups that exploited direct relations with government agents.