Landed Elites, Redistribution’s Pitfalls, and Barriers to Development in Peru

Summary

Why do some regions remain poor and unequal despite efforts to reform them? This PhD thesis investigates the long-term legacy of agrarian institutions in Peru and their effects on education and agricultural development. It examines two pivotal institutions: the hacienda system—large estates where landed elites concentrated economic and political power—and the 1969 land reform, one of the most extensive in Latin America. Drawing on archival records, population censuses, and household surveys, the research shows that districts with stronger hacienda presence experienced persistently lower literacy rates and slower educational progress throughout the twentieth century. It also finds that the land reform, while successfully dismantling elite dominance, unintentionally reduced farm productivity and children’s schooling as households became more dependent on family labour. Together, these findings reveal how enduring power structures and institutional legacies shape development trajectories, and how redistributive reforms, without complementary investments, can create new barriers to development.