[9] Peru experienced limited government interaction in the public sector until 1968 when the military junta leadership of General Juan Velasco Alvarado began, with state capitalism and heavy spending instituted that resulted in large national debt.
[9][10][11] Political scandals resulted in the end of the junta and the Lost Decade of the 1980s began, with President Fernando Belaúnde Terry failing to develop an effective economic policy and his successor Alan García experienced the complete deterioration of the state due to corruption, hyperinflation and the internal conflict in Peru.
[14] Thus, Plan Verde was drafted at the end of the García presidency; the objectives evolved into establishing a civilian-military government with a neoliberal economic policy, the genocide of impoverished and indigenous Peruvians in an effort to remove a drain on resources and the control or censorship of media.
[15][16][12] During his campaigning for the 1990 Peruvian general election, Alberto Fujimori expressed concern against the proposed neoliberal policies of his opponent Mario Vargas Llosa and promised not to use shock therapy on Peru's economy.
[1][9] Fujimori and the Consensus experienced support as the public began to distrust left wing groups following the Velasco dictatorship and due to actions of communist guerrillas during the internal conflict.
[19][20] Alejandro Toledo continued to promote the decentralization of Peru,[9] while the former social democrat Alan García took implementation of the consensus even further, adopting policies similar to Augusto Pinochet and combatting with indigenous groups opposed to mining in their communities, events culminating with the 2009 political crisis that saw civilians against an oil development in the Amazon rainforest massacred.
[20] Successful Peruvian politicians often espouse center-left ideas while campaigning to gain the electoral majority and later turn to support the powerful right-wing elites after taking office.
[8] This lack of state intervention as promoted by the Consensus has resulted with a weak government with poor performance, with many Peruvians experiencing insufficient basic services such as education, justice and security.
[19] The lack of state intervention has also resulted with the increase of corruption, crime, crony capitalism and inequality, with many political officials frequently moving between business and government positions without oversight.