ABSTRACT
This chapter investigates to what degree the military junta was successful in implementing its overall macro-economic objectives of improving the income distribution and of increasing the rate of economic growth. It analyses how an agrarian reform could affect the overall distribution of income in the economy. The public sector expanded rapidly its sphere of influence over the economy, including the nationalization of banks, copper mines, and the fishing industry. The public sector rapidly increased its share in capital formation, but never managed to increase its tax revenue to levels compatible with its economic activities. The chapter aims to investigate the overall tendencies in the Peruvian economy with respect to two variables, namely growth and income distribution. The structural dependency on world markets of Peru commented on implies that the agricultural sector became increasingly a bottleneck in Peruvian development. The data on the distribution of income in Peru show that in 1961 the distribution was much skewed.
