Randy at Beautiful Horizons has an important item on the potential for Ecuador- and Bolivia-style unrest in Peru. It’s growing. Like the other two nations, Peru has weak institutions and grinding poverty and growing discontent. The Shining Path has made some frightening recrudescences in Andean villages, scaring the locals who want that era over forever, a sure sign of trouble brewing.

I talked to some investment bankers yesterday on Bolivia as well, and learned they had concerns about Peru, which has posted 38 straight months of economic growth yet somehow hasn’t ended poverty. What a terrible thing! Alvaro Vargas Llosa, a Peruvian, speaking in Oakland recently, noted Peru’s weak institutions and political corruption with disgust and said it wasn’t ‘worth it’ to return there.

Randy has a good post and several links about the potential for this domino to come down. Read it here.