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Plan Verde

Peruvian clandestine military operation

  • 12 min read
  • 3 chapters

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Through Conservatism, Hyperinflation and Authoritarianism

Plan Verde was first leaked to the public by Peruvian magazine Oiga, shortly after the coup, with a small number of other media outlets also reporting access to the plan's documents.

Background

Under the military government of Juan Velasco Alvarado, Peru's debt increased greatly due to excessive borrowing and the 1970s energy crisis. In 1975, Francisco Morales Bermúdez led a military coup that overthrew President Velasco, with his military faction being supported by existing economic elites and holding conservative, neoliberal values. Fernando Belaúnde was elected president in 1980 and by the end of his administration in 1985, the majority of military officers were more conservative due to the increased polarization experienced between them and far-left guerrilla groups in the internal conflict in Peru.

The economic policy of President Alan García distanced Peru from international markets further in the late 1980s, resulting in lower foreign investment in the country. Under García, Peru experienced hyperinflation and increased confrontations with the Maoist Shining Path terrorist group, leading the country towards high levels of instability.

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