Discusses the development of social policy since 1901, with special emphasis on the War on Poverty. Analyzes the relationships among poverty, social norms, and family structure. Outlines the problems of the new social condition, characterized by drug abuse and welfare dependency. (FMW)

From 1994 to 1997, social welfare improved in Peru. Areas of improvement included decreased poverty and severe poverty rates, increased school attendance and literacy, and a healthier population. Most important among health improvements was reduced malnutrition among young children. Social improvements stemmed from the favorable overall economic…