First, these practices stimulated the growth of economics: GDP grew on 16%, inflation rate was reduced nearly twice, but still temporary economic growth was changed by new crisis. Growing incomes caused the growing demand in imported goods, while the income from country's export reduced, which caused inflation and later hyperinflation (up to 2500% in 1988). Moreover international monetary fund proclaimed Peru to be "undesirable debtor" which cut country from foreign credits. As the result, starting from 1988 government lost the control over economics. Failure of political reforms of democratic governments had tragic outcomes: as the society was turned into a prolonged economical and social crisis, income in 1980 ies was nearly equal to the income of 1960's. People were lost in changes of governments, political ideologies and courses of government. They lost either the trust to democratic powers or to conservatives. As a result Peruvians start referring to the most radical political movements and ideologies of revolutionary Marxism. "United left," the union of political parties, got a victory on the elections to municipalities, but still they could not change the situation in the country and only boosted the growth of political contradictions with official government.

The brightest example of social crisis in Peru was the appearance of a new power on political arena: left-radical terrorist organization "Sendero Luminoso" organized by doctor of philosophy E. Guzman "or chief Gonzalo." Popular among Peruvian students, "Sendero Luminoso" was considered to be the only political organization that kept to the official line of Maoism. Its success was explained by growing literacy level in the country, spread of higher education and it's availability for common people, switching Peru from the 14th place to the 4th in Latin America

Progressive Peruvian literature did not stand apart from the political and social changes of the country. Modern writers as Mario Vargas Llosa, Julio Ramon Riberyo, Jose Maria Arguedas, Alfredo Bryce Echenique and Miguel Gutierrez reflect the dynamics of social changes, vices and crisis of out-dated relations and toucherd the most important moral and ethical problems of modernity. Their works got international acknowldgement and are considered to be among the most popular realist novels of the twentieth century.

The role of the writer in the life of the country was best defined by Mario varas Llosa on the ceremony of Gallegos international literature Prize in 1967, as he said that...

The novels of Llosa describe all social vices of different epochs in modern Peru starting from the military dictatorships and ending with idle democratic governments. The first novel of Vargas Llosa La ciudad y los perros (1963) resulted a scandal in Lima, as it exposed wild dispositions of Peruvian military system; the novel Conversaci n en La Catedral (1969) discovered corruption of society during dictatorship of M. Odrea (1948-1956). In the novel Pantale n y las visitadoras (1973) Vargas Llosa describes in the satiric manner ambitions of martinets to control even private life of their subordinates. The novel of Miguel Gutierrez La Violencia del Tiempo is the best description of volent events of the most dramatic periods in Peruvian history - 1980 ies.
The achievemnt of Peruvian modern writers is that they have made national literature universal and close to common people, as they touched the most urgent problems of modern time. Its realism, humanism and openess make it close and familiar to different reader. Moreover the works of modern Peruvian authors had become life chronicles of the most dramatic events in the history of Peruvian nation and reflected the destinies of common people in the epicenter of dynamic changes. The main merit of realist Peruvian writers is that they have engraved dynamical social changes, destruction of out-dated conservaative morality based on mercantilic values, bigotry and chauvenism. All modern Peruvian literature is saturated with the spirit of changes, spirit of liberty and equality. The pursuit of moral perfection, moral development and patriotism is common for the works of these authors as they wanted to show that people of Peru is ready for changes, it is able to acept them and live in civil democratic society, that they will never turn backward to dictatorship and uncivil regimes. And the best proof of these aspirations were the elections of 1990, which returned Peru to the world community.