Juan Francisco Velasco Alvarado (June 16, 1910 – December 24, 1977) was a Peruvian general and politician who was the military leader of Peru from 1968 to 1975 after a successful coup d'état against Fernando Belaúnde's presidency. Under his government, nationalism, as well as left-leaning policies that addressed indigenous Peruvians, such as nationalization or agrarian reform were adopted. These policies were reversed after another coup d'état in 1975 led by his Prime Minister, Francisco Morales Bermúdez.
Velasco had a confrontational foreign policy towards the United States, as he pushed for renegotiation of treaties and criticized what he perceived as a pernicious dependence of Latin American states on the United States and strengthened relations with the Soviet Union. His foreign policy has been described as "third way." His reign was also described by Western analysts as "fascistic", "corporatist" or populist. The government denied to be fascistic although. He called his ideology "Peruanismo".
Early life
Juan Velasco was born in Castilla, a city near Piura on Peru's north coast. He was the son of Manuel José Velasco, a medical assistant, and Clara Luz Alvarado, who had 11 children. Velasco described his youth as one of "dignified poverty, working as a shoeshine boy in Piura."
In 1929, he stowed away on a ship to Lima, Peru, falsified his age, and tried to enlist as an officer in the Peruvian Army. However, he arrived late to the exam, so he joined as a private on April 5, 1929. A year later, he took a competitive exam for entrance into the Escuela Militar de Chorrillos, and got the highest score of all applicants. In 1934, he graduated with high honors and at the head of his class.
Coup d'etat against President Fernando Belaunde
During the Fernando Belaúnde's administration (1963–1968), political disputes became a norm as he held no majority in Congress. Serious arguments between President Belaúnde and Congress, dominated by the APRA-UNO (Unión Nacional Odríista) coalition, and even between the President and his own Acción Popular (Popular Action) party were common. Congress went on to censure several cabinets of the Belaunde administration, and a general political instability was perceived.
Also, between 1964 and 1965 the army had been sent to deal with two military uprisings inspired by the Cuban Revolution. Through the use of guerrilla tactics, both the National Liberation Army (ELN) commanded by Héctor Béjar and Javier Heraud, and the Revolutionary Left Movement (MIR), led by an APRA militant, Luis de la Puente Uceda, and Guillermo Lobatón, tried to instigate a revolution, being unsuccessful. Nevertheless, these conflicts led several military officers to the most impoverished parts of the country, and after witnessing the reality of the country-side and studying the reasons which led to the uprisings, they began to consider social inequality and poverty as a danger to national security.
A dispute with the International Petroleum Company over licenses to the La Brea y Pariñas oil fields in northern Peru sparked a national scandal when a key page of a contract (the 11th) was found missing. The Armed Forces, fearing that this scandal might lead to another uprising or a takeover from the APRA party, seized absolute power and close down Congress, almost all of whose members were briefly incarcerated. General Velasco seized power on October 3, 1968, in a bloodless military coup, deposing the democratically elected administration of Fernando Belaúnde, under which he served as Commander of the Armed Forces. President Belaúnde was sent into exile. Initial reaction against the coup evaporated after five days when on October 8, 1968, the oil fields in dispute were taken over by the Army. Velasco's administration articulated a desire to give justice to the poor through a regime of nationalization known as Peruanismo. Velasco's rule was characterized by broadly social democratic, developmentalist, and independent nationalist policies, which aimed to create a strong national industry to increase the international independence of Peru. To that end, he nationalised entire industries, expropriated companies in a wide range of activities from fisheries to mining to telecommunications to power production and consolidated them into single industry-centric government-run entities, and increased government control over economic activity by enforcing those entities as monopolies and disincentivized private activity in those sectors. Most reforms were planned by leftist intellectuals of the time.
A root and branch education reform was implemented, seeking to promote inclusivity among all Peruvians and move them towards to a new national way of thinking and feeling; the poor and the most excluded were prioritized in this system. The Día del Indio or Peruvian Indian's day became Día del Campesino or Peruvian Peasant's day. This holiday fell on June 24, a traditional holiday of the land, since it was the day of winter solstice.
The education reform of 1972 provided for bilingual education for the indigenous people of the Andes and the Amazon, which consisted nearly half of the population. In 1975, the Velasco government enacted a law making Quechua an official language of Peru equal to Spanish. However, this law was never enforced and ceased to be valid when the 1979 constitution became effective, according to which Quechua and Aymara are official only where they predominate, as mandated by law – a law that was never enacted.
A cornerstone of Velasco's political and economic strategy was the implementation by dictate of an agrarian reform program to expropriate farms and diversify land ownership. In its first ten years in power, the Revolutionary Government expropriated 15,000 properties (totaling nine million hectares) and benefited some 300,000 families. Peru's agrarian reform under Velasco was the second-largest Land reform in Latin American history, after Cuba. The former landlords who opposed this program believed that they did not receive adequate compensation for their confiscated assets and lamented that the state officials and peasant beneficiaries mismanaged their properties after the expropriation. The owners who opposed his program also claimed that the expropriation was more akin to confiscation, as they were paid in agrarian reform bonds, a sovereign debt obligation of which the government defaulted payment due to the hyperinflationary period that affected Peru's economy in the late 1980s, leaving the current value of the bonds up for debate and resulting in a decade-long lawsuit against the Peruvian government.
The deposed Belaúnde administration had attempted to implement a milder agrarian reform program, but it was defeated in Congress by the APRA-UNO coalition with support of the major landowners. Within this framework, the Velasco administration engaged in a program of import substitution industrialization, imposing tight foreign exchange and trade controls.
In his rhetoric, Velasco said to be working against the oligarchy in Peru.
The success of the Velasco administration's economic policies is still debated today. As the Peruvian military government ran deeper into debt, it was forced to devalue the currency and run inflationary policies. This however, was in part due to the 1970s energy crisis, which also affected Peru and made it impossible for the Velasco administration to fund some of its most ambitious reforms. Economic growth under the administration was steady if unremarkable - real per capita GDP (constant 2000 US$) increased 3.2% per year from 1968 to 1975.
In 1971, Velasco described the economic policy as one aimed at overcoming capitalism in Peru, stating that
In a 1975 speech Velasco described his revolution as one that rejected both capitalism and communism, stating that
Foreign and military policies
250px|thumb|right|General Velasco meeting with President [[Nicolae Ceaușescu of Romania, in 1973.]]
In foreign policy, in contrast with his 1970s Latin American contemporaries, which were mostly right-wing military dictatorships, he pursued a partnership with the Soviet bloc, tightening relations with Cuba and Fidel Castro and undertaking major purchases of Soviet military hardware.
Relations between the United States and Peru were tense and even hostile, as soon as General Velasco and his junta took power. This was due to the government's socialist-leaning policies, but also because of a belief on the part of the Peruvian public that the U.S. generally favored other nations first, such as Chile in the context of their territorial dispute (in spite of its support of Peru over the Tarata dispute), or Colombia, in the context of the United States' mediation in favor of the Salomon-Lozano Treaty in order to compensate the country for its loss of Panama.
Just five days after Velasco seized power in 1968, the General began the nationalization of the Peruvian economy with the expropriation and nationalization of the American International Petroleum Company (IPC) oil fields located in the northern Peruvian oil port and refinery of Talara, Piura, near the Peruvian border with Ecuador, Piura being the region where Velasco was born. The IPC expropriation was one of the first foreign policy crises for the new American administration of President Richard Nixon. John N. Irwin II was appointed special Ambassador to negotiate a solution and recommended against formal application of sanctions required by U.S. law. Eventually, the dispute was resolved in the context of a broader claims agreement so formulated as to permit Peru to maintain the position that it had not agreed to compensate IPC.
US–Peru disagreements continued over a broad range of issues including even Peru's claim to a 200-mile fishing limit that resulted in the seizure of several US commercial fishing boats and the expropriation of the American copper mining company Cerro de Pasco Corporation. However, in spite of these provocations, the U.S. responded immediately with humanitarian aid in 1970, when an earthquake killed about 50,000 people and left over 600,000 homeless.
Chile
Another main goal of the Velasco administration, besides the nationalization of the main areas of the Peruvian economy and the agrarian reforms, was a military strengthening of Peru. Despite Chilean fears that Velasco planned on reconquering the lands lost by Peru to Chile in the War of the Pacific, such claims have been since disputed. It is estimated that from 1970 to 1975 Peru spent up to US$2 billion (roughly US$25 billion in 2021 dollars) on Soviet armament.
The enormous amount of weaponry purchased by Peru caused a meeting between former US Secretary of State Henry Kissinger and Chilean US-backed dictator General Augusto Pinochet in 1976. In 1999, Pinochet claimed that if Peru had attacked Chile during 1973 or even 1978, Peruvian forces could have penetrated deep south into Chilean territory, possibly militarily taking the Chilean city of Copiapó located half way on the way to Santiago. While acknowledging the Peruvian plans were revisionistic, scholar Kalevi J. Holsti claim more important issues behind were the "ideological incompatibility" between the regimes of Velasco Alvarado and Pinochet and that Peru would have been concerned about Pinochet's geopolitical views on Chile's need of naval hegemony in the Southeastern Pacific.