Poverty, inequality, and living standards during unorthodox adjustment: the case of Peru, 1985-1990

The Peruvian government was experimenting on economic reactivation policies in the 1980s. Changes in poverty, inequality and living standards in Lima, Peru in 1985-1990 are examined. Findings indicate the increase of poverty in Lima and that no improvement in living standards occurred. Real consumption levels dropped by more than 1/2, experienced especially by the poorest 10%. Health and education outcomes do not reflect the same decline despite lower levels of consumption.