[1] In addition, his party, the American Popular Revolutionary Alliance, emerged as the largest faction in both houses of Congress.

At the time of his election, García enjoyed high popularity attributed to his youth, oratory skills and charisma.

[2] The change of command ceremony was attended by the presidents Raúl Alfonsín of Argentina, Julio Maria Sanguinetti of Uruguay, Belisario Betancourt of Colombia, Hernan Siles of Bolivia, Nicolás Ardito Barletta of Panama, and Salvador Jorge Blanco of Dominican Republic.

In October 1985, Newsweek called him the most important political star to emerge in Latin America since Juan Domingo Perón.

On the one hand, the government sought direct contact with major employers (called the twelve apostles) to persuade them to invest in the development of productive capacity.

Such ups and downs, of reactions to a fait accompli, passivity against the dangers ahead contributed to the perception that government economic policy was being improvised and, above all, losing control.

As early as 1982 he had published a book ( The different future) in which he criticized private banks to exclude the credit system to the informal sectors: farms and small and medium enterprises (SMEs).

According to the government's economic policy, it was necessary to "democratize" the credit and, as the private sector was unwilling to assume this task, the state should take over.

At the end of 1987, the crisis was already evident: Inflation started to gallop (114.5% in December 1987), production – and hence economic recovery – has been stalled and the balance of payments had, in 1987, a deficit of $521 million, the largest gap since 1981.

Forced by circumstances to a change of course, the government resorted to late 1987, the International Monetary Fund and the World Bank for loans.

The results are in the collective memory of all Peruvians: Inflation to astronomical levels, food shortages and other commodities and the collapse of Alan Garcia's approval.

The new Minister of Economy and Finance, Abel Salinas, had the thankless task of announcing, now, the economic shock, on September 6 of 1988.

Rising unemployment and falling incomes drastic was the social cost of economic disaster leading to the emergence of an informal sector of proportions never seen before.

During the presidency of Alan Garcia, along with subversive violence, which claimed thousands of lives, there were acts of military repression, such as the massacre of the prisons and the slaughter of dozens of farmers in the Ayacucho community of Cayara in 1988.

Although Garcia initially showed interest in curbing human rights violations after the incident of criminal allowed to continue counter-violence of the armed forces and formed death squads (Rodrigo Franco Command), the suspected terrorists intimidated critics and counter-terrorism policy.

The building had no water or sewer connections, lighting facilities and services that would facilitate either a vent operational work.

Beyond the fact itself, the effect obtained by the Tupac Amaru Revolutionary Movement (MRTA), nationally and internationally, was a tough challenge not only to the Peruvian government counter-insurgency strategy, but also the operational capacity of and criminal law enforcement authorities of the country.

Opposition to the government grew significantly from the attempt to nationalize the banks, a move that was deeply unpopular and fired a strong protest movement political right led by the writer Mario Vargas Llosa this movement eventually evolve into a political alliance FREDEMO (which included the Christian People's Party, Popular Action and Liberty Movement) who ran unsuccessfully in the 1990 Peruvian general election with Vargas Llosa's presidential candidacy.

In his last message to the nation, July 28 of 1990 in the Congress in a reprehensible attitude, not allowed to speak, constantly interrupting him by blunders.