Rebuilding the State in Areas Affected by Political Violence: The Case of Rural Communities in Ayacucho, Peru

During the 1980s, the Peruvian society was deeply and negatively affected by two significant issues: In the first place, the economic crisis that ended in recession and hyperinflation and, secondly, the spread of political violence in most parts of Peru, in particular in Ayacucho, a Department located in the central Andean highlands. Taking this into account, the conditions for the reconstruction and rehabilitation of those areas affected by political violence were reviewed from the scope of an economic approach. Therefore, this document aims to analyze the role of the State in the rehabilitation process of the rural communities in Ayacucho, with special attention on the advantages and limitations of those programs intended for effective decentralization.

JEL Classification: H70, I31

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