This paper discusses affirmative action in Peru and considers what the government must do to solve the inferior status of the Indian majority. Ethnically and geographically diverse, Peru's population is said to be marked by inequities in wealth, education, and employment. The policies developed by Peruvian governments over the past 20 years to deal with these problems are analyzed. The first regime of Fernando Belaunde Terry (1963-68) is contrasted with the revolutionary military government of Juan Velasco (1968-75) and Morales Bermudez (1975-80). Three specific concerns are addressed: (1) policy innovation and its motivation; (2) the complexities of the implementation process; and (3) intended and unintended outcomes on Indian peasants and women. The paper reports that by the mid-1970s, a series of affirmative action efforts were undertaken by Peruvian governments, but considers that not all of these have been successful. One reason for failure cited is the difficulty of implementation in a developing country where inequalities are complex and government resources are limited. Although inequalities are viewed as having lightened somewhat in the last 20 years, it is argued that the government has yet to overcome such problems as choosing between redistributing and growth, cultural pluralism, the complexity of land tenure patterns, political constraints, and the weakness of institutional structures upon which affirmative action programs were built. In conclusion, some theoretical questions are posed for comparative studies of affirmative action. (KH)