García APRA first term — heterodox shock, debt-service limit, hyperinflation

Doctrine — stated goals and content

Heterodox-populist APRA programme — first APRA presidency 60 years after party founding. Four doctrinal pillars: (1) debt-service limitation — García's inaugural speech capped foreign-debt service at 10% of export earnings, confronting the IMF; Peru declared "ineligible" by IMF in August 1986; external arrears accumulated; (2) heterodox shock — August 1985 inti replaced the sol at 1 to 1,000; price-wage freezes, multiple exchange rates, interest-rate controls, and expansionary fiscal stimulus; real GDP grew 9.7% (1986) and 6.9% (1987) via capacity utilisation recovery; (3) July 1987 bank nationalisation announcement — García announced nationalisation of the ten largest private banks on Independence Day; proposal triggered mass constitutional challenge, the Vargas Llosa-led Movimiento Libertad opposition, and by October 1987 was effectively defeated in the courts; marked turning point in middle-class support; (4) hyperinflation and collapse — 1988-1990 terminal crisis: GDP fell -8.3% (1988), -11.7% (1989); CPI peaked at 7,650% (1990); "paquetazos" shock-adjustment packages September 1988 and March 1989 failed to stabilise; international reserves exhausted; Sendero Luminoso expanded control over MRTA and narco-trafficking corridors. Stated school: APRA heterodox-structuralism + CEPAL-origins developmentalism + populist redistribution. Left-right axis: centre-left economic content with anti-imperialist foreign-debt posture. Popularity / legitimacy: April 1985 election García won 53.1% (first round, second round waived when Barrantes declined), the largest APRA margin ever; 1989 municipal elections APRA collapsed; April-June 1990 succession Fujimori defeated Vargas Llosa 56.5% vs 33.9% — García handed power 28 July 1990 amid hyperinflation. Coherence line: trade creditor- community access and macro stabilisation for redistributive expansion and anti-imperialist assertion — a case study of populist inconsistency identified by Dornbusch-Edwards (1991) as the canonical "macroeconomics of populism" failure mode.