Peru

Abstract

Abstract Chapter 5 covers Peru, an important third case for two reasons. First, government partisanship changed over the timeframe of this study. This allows for a within-case test of partisanship’s effects on foreign borrowings, adding to the between-case test in Chapter 4. Second, the country’s DMO is a unit within a reputably independent ministry that uses its influence to promote conservative economic policies in many areas of Peru’s economy despite the election of increasingly left-leaning governments since the early 2000s. If this book’s model of sovereign debt accumulation is credible, the effect of government partisanship on external borrowing should persist throughout these partisan shifts and despite an influential and ideological DMO. This chapter shows this is the case: as Peru has elected more left-leaning governments, the DMO has been forced to use more bond market finance to fulfill its external borrowing needs.