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This article analyzes the evolution of state capacity in Peru during the recent commodity boom. Peru’s economic growth happened in a context in which inclusive democratic institutions were at play for the longest period ever registered in the country and at a time when political elites decided to invest considerable resources in developing state capacity (not the prototypical predatory elites usually identified in the literature). This case illustrates how boom-led economic growth can lead to the (unilateral) institutional strengthening of a weak state. However, (net) state capacity continues to be low in Peru. The causal mechanism that yields such continuity differs from those entertained in classic path-dependent explanations of state capacity in Latin America. The article identifies a novel mechanism that helped reproduce the Peruvian path intertemporally. This relational mechanism suggests that state capacity remains …