Peru general information for your travel vacation to Peru

Vacationing in Peru is: Machu Picchu, Cusco, Lima, Nazca Lines, Amazon Rain Forest, The Inca Trail,  Trujillo, Lake Titicaca, Puno, Arequipa, Ica, Urubamba or take a Spiritual Journey Package

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THE PERU ANDES

THE PERU COAST

THE PERU AMAZON JUNGLE

PERU MAP TOUR

Amazonia

Machu Picchu Cusco

Nazca Lines Paracas - Ica

Llanganuco Santa Cruz

Lake Titicaca Puno - trips

Trujillo

Colca Canyon Arequipa

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Peru Information on the Coast

The coastal region accounts for 10.6% of Peru's territory 52,639 square miles (136,334 km2). It is a narrow strip 1,554 miles long (2,500 km), but only 12 to 62 miles wide (19 to 100 km). The altitude along this strip varies from zero to 3,281 feet above sea level (1,000 m). Although the coastal strip is mainly arid, seasonal rains occur in the north, especially during periods of El Niño climatic phenomena. Along the coast, less than 1 million hectares of the total 15 million are irrigated, Some of the 52 valleys are arable and they are farmed using a combination of ancient Peruvian methods and modern technologies The Peruvian coastal region has been home to several important cultures. Visitors can find many well-known archaeological sites here, including Chan-Chan, Nasca and Sipan. In the coastal plain the temperature is normally equable, averaging about 20° C (about 68° F) throughout the year. The coastal climate is moderated by winds blowing from the cool offshore current known as the Peru, or Humboldt, Current. The coast receives less than 50 mm (less than 2 in) of precipitation each year, largely because the cordilleras receive most of the rain carried by the trade winds from the east. Mist-laden clouds known as garúa shroud many of the slopes of the sierra from June to October, providing enough moisture to support grasslands.
 

Peru information on the Sierra

Sierra is the name given to the Andean highland region, where the Andes mount range runs through the country north to south like a backbone, dividing the coastal region from the jungle. The sierra offers a wide diversity of landscapes which vary according to the altitude. The Sierra makes up 30.5% of the nation's territory 151,304 square miles (391,876 km2) and is between 52 and 155 miles wide (83 to 250 km). The average altitude is 14,108 feet above sea level (22,705 m). The Peruvian Andes have more than 174 snow-capped peaks over 16,000 feet (4,877 m) in height and 39 peaks over 19,600 feet (5,974 m) in height. The highest and most formidable of them all is Mt. Huascaran at 22,205 feet (6,768 m). High plateaus, at altitudes ranging from 12,500 to 14,100 feet (3,810 to 4,298 m) above sea level, contrast sharply with deep canyons such as those formed by the Apurimac, Cotahuasi and Colca Rivers. The sierra region has both arid areas and fertile valleys. Vivid blue skies form a stunning backdrop to the soaring peaks and are reflected in many glittering lakes. The world's largest navigable lake, Titicaca, is an incredible tourist resource for Peru thanks to its scenery, history, archaeological sites and beautiful colonial towns. In the sierra the temperature ranges seasonally from about -7° to 21° C (about 20° to 70° F). Rainfall is usually scanty, but in some localities heavy rains fall from October to April. In Cusco, in the southeastern sierra, annual rainfall averages some 815 mm (some 32 in). The exposed eastern slopes of the Andes receive more than 2,500 mm (100 in) of rain annually, but sheltered locations receive much less. Rainfall amounts diminish rapidly southward, causing many changes in the vegetation.
 

Peruvian information for the Jungle 

The jungle is the country's largest region, covering 58.8% of Peru's national territory 292,150 square miles (756,665 km2). Tropical rain forests extend from the eastern Andean foothills to Peru's borders with Ecuador, Colombia, Brazil, and Bolivia. There are two separate and distinct types of jungle, the highland and the lowland. This region is extremely hot and humid, although at higher altitudes it is less so. The prevailing easterly winds blowing across that region gather moisture that is later deposited on the eastern Andean slopes. Annual rainfall in some districts averages as much as 3,810 mm (as much as 150 in). Most of this rain, which principally falls from November through April
The Highland Jungle
The highland jungle, known locally as "ceja de selva", is located on the eastern flank of the Andes. Its average altitude is between 1,600 and 9,200 feet above sea level (487 to 2,804 m). A variety of tropical and subtropical products (coffee, tea, cocoa, citrus fruits, bananas, pineapples, etc.) grow amidst its luxuriant vegetation. This region, unlike the sierra, has a temperate and humid climate and it is also the smallest region in the country. Machu Picchu, our most important tourist destination, is located in this environment.
 

Peru information on t he Lowland Jungles

Also known as the Amazon plain, this region, the largest in the country, is made up of lush tropical vegetation and a vast network of rivers. Peru's largest volume of natural resources, and most important ones, are concentrated here. The lowland jungle lies, on average, between 250 and 1,300 feet above sea level. The two most majestic rivers in Peru are found here; the Marañon River (1,025 miles long) and the Ucayali River (1,240 miles long). Both flow into the Amazon River, which eventually crosses the borders into Colombia and Brazil. Although the lowland jungle is the least inhabited of the regions, it offers a vast array of attractions and resources, particularly for eco-tourism
El Niño
Peru’s climate periodically experiences a weather pattern known as El Niño. El Niño occurs every three to seven years when unusually warm ocean conditions appear along the western coast. During El Niño the wet weather conditions normally present in the western Pacific move to the east, bringing heavy rains that can cause extensive flooding.
 

Peru information on the Rivers and Lakes

Peru has three main drainage systems. One comprises about 50 torrential streams that rise in the sierra and descend steeply to the coastal plain. The second comprises the tributaries of the Amazon River in the montaña region. In the third the principal feature is Lake Titicaca, which drains into Lake Poopó in Bolivia through the Desaguadero River.
The Napo, Tigre, and Pastaza rivers rise in Ecuador and flow into Peru. The latter two streams are tributaries of the Marañón River, and the Napo empties into the Amazon River. The border between Peru and Colombia is delineated by the Putumayo River.
 

Peru information on the Plants and Animals  

The plant life of the three main geographical regions varies widely. The vast, fertile montaña contains a rich profusion of trees, plants, and jungle vines, including mahogany, cedar, rubber, and cinchona trees, sarsaparilla and vanilla plants, and a variety of exotic tropical flowers. The rugged sierra supports a relatively sparse plant life. Sierra vegetation is largely xerophytic—that is, adapted to survival on a restricted supply of water. Such growths include mesquite, cactus, scrub and fodder grasses, and eucalyptus plants. The dry, sandy reaches of the coastal plain support mainly desert vegetation, such as shrubs, grasses, and tuberous plants.
The wildlife of coastal Peru is limited in number and variety. The coastal plain and offshore islands support gulls and terns and some albatrosses, but little other wildlife except lizards, insects, tarantulas, and scorpions. Peruvian ocean waters abound in anchovy, pilchard, haddock, sole, mackerel, smelt, flounder, lobster, shrimp, and other marine species. In the sierra are found the llama, alpaca, vicuña, chinchilla, and huanaco. Birds of the region include the giant condor, robin, phoebe, flycatcher, finch, partridge, duck, and goose. Lake Titicaca and other sierran bodies of water teem with fish. Animals of the tropical montaña include the jaguar, cougar, armadillo, peccary, tapir, anteater, several dozen species of monkey, alligator, turtle, and a variety of snakes and insects; among the birds are the parrot, the flamingo, and other tropical species.
 

PERU POPULATION

About 45 percent of Peru’s inhabitants are Native Americans, some of whom are descended from the Inca who established a great civilization in the region by the 15th century. About 100 other indigenous groups live in the rain forest of eastern Peru. These tribes live in virtual isolation from the rest of Peru’s population, speaking traditional languages and surviving by hunting, fishing, and agriculture. Some 37 percent of the country’s people are mestizos, those of mixed white (mainly Spanish) and Native American background. About 15 percent of Peruvians are of unmixed white descent, and many of the remainder are of black African, Japanese, or Chinese ancestry. Some 72 percent of the people live in urban areas.
Population Characteristics  The population of Peru (1998 estimate) is 26,111,110, giving the country an estimated overall population density of 20 persons per sq km (53 per sq mi). The distribution, however, is uneven, with about 50 percent of the people inhabiting the sierra region and about 40 percent inhabiting the coastal plain.
 

Principal Cities Peru information

The largest city in Peru is Lima (greater city population, 1996 estimate, 6,884,000), the country’s capital and chief commercial center. Other important cities include Callao (637,755), a major port located near Lima; Arequipa (680,600), an industrial center; Trujillo (556,800), a commercial center; Chiclayo (457,800), in the sugar district; and Cusco (257,751), famous for its Inca ruins.
Language and Religion
Spanish, spoken by some 70 percent of the people, was the sole official language of Peru until 1975, when Quechua, one of the principal languages of the Native Americans, also was made an official language. Another Native American language, Aymará, was declared official in 1980. English is also spoken.
More than 90 percent of Peruvians adhere to the Roman Catholic religion. In 1915 a law was passed that made Roman Catholicism the established religion of the country. However, the constitution of 1979 ended Roman Catholicism's status as the established religion, although it recognized Catholicism "as an important element in the historical, cultural, and moral formation of Peru." Other religions are permitted and tolerated, and small numbers of Protestants, Jews, and Muslims live in Peru.
Education  The literacy rate in Peru has increased substantially as a result of greater emphasis on education. According to estimates, the adult literate population rose from 42 percent in 1940 to 89 percent in 1995. Public basic education in Peru is free and compulsory for all children between the ages of 6 and 12. Many children in rural areas do not attend secondary school, however, because of a lack of facilities. In 1995 some 4.1 million pupils attended elementary schools, and 1.9 million students were enrolled in secondary and vocational schools.
 

Music
The pentatonic scale used by the ancient peoples still survives, and pre-Columbian instruments such as the reed quena or flute, the antara or panpipes, conch shells, the ocarina, and various primitive percussion devices are widely used today. The Spaniards brought stringed instruments. The violin, the harp, the guitar, and the charango, a mandolinlike instrument, are very popular. Among the most popular folksongs and dances are the yariví, a love song; the huayno, a rapid dance of the highlands; the cashua, a circle dance; and the marinera or zamacueca.
Lima has a national conservatory and a symphony orchestra, the latter organized in 1938 by Austrian-born Theo Buchwald. The orchestra encourages Peruvian composers by performing their compositions. The most distinguished 20th-century Peruvian composer is the Paris-born André Sas, who founded a music school in Lima in 1929. His compositions reflect the influence of native music. Sas was also an authority on folk music.
 

Literature and Drama
Peruvian literature began during the 16th century when Garcilaso de la Vega, son of a Spanish conqueror and an Inca princess, wrote his Comentarios reales de los incas (1609; Royal Commentaries of the Incas, 1869), a vivid historical chronicle about the Inca culture and empire. Another important writer of the colonial period was 17th-century satirist Juan del Valle y Caviedes. The foremost writers of the 19th century were Manuel González Prada, who wrote social criticism, and Ricardo Palma, who composed a collection of historical and legendary tales about Peru's past.
In the 20th century there has been an abundance of poets and prose writers. Among them are Ventura García Calderón, a diplomat who was also an essayist; José Carlos Mariátegui, a Marxist political essayist; and the poets José Santos Chocano, César Vallejo, and José María Eguren. Ciro Alegría, in his famous El Mundo es ancho y ajena (1941; Broad and Alien is the World), has produced one of the finest novels treating the plight of the indigenous peoples in Latin America. Mario Vargas Llosa is an internationally famous novelist. One of Latin America's most important literary critics is Luis Alberto Sánchez.
The theater has played an important role in the cultural life of Peru since 1568, when the first play in the country was presented in the plaza of San Pedro in Lima. During the colonial period, the Jesuits promoted dramatic productions, and 18th century viceroy Manuel de Amat was a leading patron of the theater. The country's leading playhouse and concert hall is Lima's Municipal Theater. Sebastián Salazar Bondy and Enrique Solari Swayne are the most important 20th-century playwrights.
 

Libraries
Some of the most important libraries in Peru are located in the larger cities and are affiliated with the major universities. Within the various libraries of the National University of San Marcos in Lima are more than 450,000 volumes. The National Library (1821), in Lima, houses more than 3.2 million books and other items.
Museums
Museums throughout the country display Peruvian art and archaeological artifacts. Many of Peru's colonial buildings, such as the Torre Tagle Palace and the cathedral in Lima, contain valuable artifacts. Notable museums in Lima include the Museum of Art (1961), the Rafael Larco Herrera Archaeological Museum (1926), the Javier Prado Natural History Museum, and the National Museum of Anthropology and Archaeology (1822), which displays collections of pre-Columbian artifacts. Other important museums include the Military History Museum of Peru (1946), in Callao; and archaeological museums in Arequipa, Cusco, Huancayo, and Trujillo.
 

Transportation
Peru’s system of railroads, highways, and airports has been expanded considerably in the second half of the 20th century. The country’s mountains make surface transport difficult, however. In 1996 Peru had about 72,800 km (about 45,236 mi) of roads, of which 10 percent were paved. The main artery is a section of the Pan-American Highway, which traverses Peru from Ecuador to Chile, covering a distance of about 2,495 km (about 1,550 mi). The Central Highway links Lima and Pucallpa. Peru also has about 1,691 km (about 1,051 mi) of railroads. One trans-Andean line, the Central Railroad, ascends to some 4,815 m (some 15,800 ft) above sea level, the highest point reached by any standard-gauge line in the world. The most notable inland waterway is the Amazon River, which is navigable by ship from the Atlantic Ocean to Iquitos in Peru. Lake Titicaca also serves as a waterway. Leading Peruvian seaports include Callao, Salaverry, Pacasmayo, Paita, and San Juan. The country’s main international airports are situated near Lima, Cusco, Iquitos, and Arequipa. Aeroperú, the national airline, offers domestic and international service.
 

Communications
Peru’s telephone system, which was nationalized in 1970 and reprivatized in 1994, has 68 mainlines for every 1,000 of Peru’s residents. The country is served by more than 300 radio stations and 8 television stations. In 1996 there were 271 radios and 125 television sets in use for every 1,000 people. In the same period the country had 74 daily newspapers. Dailies with large circulations included El Comercio, Expreso, Ojo, and La República, all published in Lima.
Health and Welfare
In 1998 the average life expectancy at birth in Peru was 72 years for women and 68 years for men; the infant mortality rate was 43 per 1,000 live births. Although the government has made some progress in improving medical facilities, sanitation remains inadequate, and a cholera epidemic in 1991 killed more than 1,000 Peruvians and sickened another 150,000.

People
Nationality: Noun and adjective--Peruvian(s).
Population (2000 est.): 25.7 million (72.3 % urban).
Annual growth rate (2000 est.): 1.7%.
Ethnic groups (1961): Indian 45%. Mestizo 37%. White 15%. Black, Japanese, Chinese, and other 3%.
Religion (1993): Roman Catholic (89%).
Languages: Spanish (official), Quechua (official), Aymara and a large number of minor Amazonian languages.
Education: Years compulsory--11. Literacy--about 87.5% (1999).
Health (2000): Infant mortality rate--37/1,000. Life expectancy--67 male; 72 female.
Employed work force (1999, 7.2 million): Manufacturing--12.7%; commerce--26.4%; agriculture--5.8%; mining--0.4%; construction--5.2%; government--9.1% (est.); other services--40.4%.

peruvian information for travel to peru

Geography
Area: 1.28 million sq. km. (496,225 sq. mi.); three times larger than California.
Cities: Capital--Lima/Callao metropolitan area (pop. 8.27 million, 2000).
Other cities--Arequipa, Chiclayo, Cuzco, Huancayo, Truujillo, Ayacucho, Piura, Iquitos, Chimbote.
Terrain: Western coastal plains, central rugged mountains (Andes), eastern lowlands with tropical forests.
Climate: Coastal area, arid and mild; Andes, temperate to frigid; eastern lowlands, tropically warm and humid.

Government
Type: Constitutional republic.
Independence: 1821.
Constitution: December 1993.
Branches: Executive--president, two vice presidents, Council of Ministers. Legislative--unicameral Congress. Judicial--Supreme Court and lower courts, Tribunal of Constitutional Guarantees.
Administrative subdivisions: 12 regions, 24 departments, 1 constitutional province.
Political parties and movements: Peru Possible, National Unity, We Are Peru, Change 90/New Majority/Let's Go Neighbor/People's Solution, Union For Peru (UPF), American Popular Revolutionary Alliance (APRA), Independent Moralizing Front (FIM), Popular Christian Party (PPC), Popular Action (AP).
Suffrage: Universal over 18; compulsory until age 70 (members of the military may not vote).

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Economy (2000)
GDP (est.): $53.9 billion.
Annual growth rate: 3.6%.
Per capita GDP: $2,101.
Inflation rate: 3.8%.
Natural resources: Minerals, metals, fish, petroleum, natural gas, and forests.
Agriculture (7% of GDP): Products--sugar, potatoes, rice, yellow corn, cotton, coffee, poultry, beef, milk.
Manufacturing (15% of GDP): Types--fish meal, nonferrous metals, steel, textiles, chemicals, wood, nonmetallic minerals, cement, paper.
Trade: Exports--$7.0 billion: gold, copper, fishmeal, textiles, zinc, lead, coffee, petroleum products. Major markets--U.S. (29%), U.K. (9%), Switzerland (9%), Japan (4%) Germany (4%). Imports--$7.3 billion: machinery and parts, cereals, chemicals, pharmaceuticals, crude oil and petroleum products, mining equipment, household appliances and automobiles. Major suppliers--U.S. (27%), Andean Pact countries (16%), Argentina (3%), EU (16%), and Japan (7%).

PEOPLE
Most Peruvians are "mestizo," a term that usually refers to a mixture of Amerindians and Peruvians of European descent. Peruvians of European descent make up about 15% of the population; there also are smaller numbers of persons of African, Japanese, and Chinese descent. In the past decade, Peruvians of Asian heritage have made significant advancements in business and political fields; a past president, several past cabinet members, and several members of the Peruvian congress are of Japanese or Chinese descent. Socioeconomic and cultural indicators are increasingly important as identifiers. For example, Peruvians of Amerindian descent who have adopted aspects of Hispanic culture also are considered "mestizo." With economic development, access to education, intermarriage, and largescale migration from rural to urban areas, a more homogeneous national culture is developing, mainly along the relatively more prosperous coast.

Peru has two official languages--Spanish and the foremost indigenous language, Quechua. Spanish is used by the government and the media and in education and commerce. Amerindians who live in the Andean highlands speak Quechua and Aymara and are ethnically distinct from the diverse indigenous groups who live on the eastern side of the Andes and in the tropical lowlands adjacent to the Amazon basin.

Peru's distinct geographical regions are mirrored in a socioeconomic divide between the coast's mestizo-Hispanic culture and the more diverse, traditional Andean cultures of the mountains and highlands. The indigenous populations east of the Andes speak various languages and dialects. Some of these groups still adhere to traditional customs, while others have been almost completely assimilated into the mestizo-Hispanic culture.

Education
Under the 1993 constitution, primary education is free and compulsory. The system is highly centralized, with the Ministry of Education appointing all public school teachers. Eighty-three percent of Peru's students attend public schools at all levels.

School enrollment has been rising sharply for years, due to a widening educational effort by the government and a growing school-age population. The illiteracy rate is estimated at 12.5% (17.4% for women), 28.0% in rural areas and 5.6% in urban areas. Elementary and secondary school enrollment is approximately 7.7 million. Peru's 74 universities (1999), 39% public and 61% private institutions, enrolled about 322,000 students in 1999.

Culture
The relationship between Hispanic and Indian cultures has shaped the face of Peru. During pre-Columbian times, Peru was one of the major centers of artistic expression in America, where pre-Inca cultures, such as Chavin, Paracas, Wari, Nazca, Chimu, and Tiahuanaco developed high-quality pottery, textiles, jewelry, and sculpture. Drawing upon earlier cultures, the Incas continued to maintain these crafts but made even more impressive achievements in architecture. The mountain town of Machu Picchu and the buildings at Cuzco are excellent examples of Inca architectural design.

Peru has passed through various intellectual stages--from colonial Hispanic culture to European Romanticism after independence. The early 20th century brought "indigenismo," expressed in a new awareness of Indian culture. Since World War II, Peruvian writers, artists, and intellectuals have participated in worldwide intellectual and artistic movements, drawing especially on U.S. and European trends.

During the colonial period, Spanish baroque fused with the rich Inca tradition to produce mestizo or creole art. The Cusco school of largely anonymous Indian artists followed the Spanish baroque tradition with influence from the Italian, Flemish, and French schools. Painter Francisco Fierro made a distinctive contribution to this school with his portrayals of typical events, manners, and customs of mid-19th-century Peru. Francisco Lazo, forerunner of the indigenous school of painters, also achieved fame for his portraits. Peru's 20th-century art is known for its extraordinary variety of styles and stunning originality.

In the decade after 1932, the "indigenous school" of painting headed by Jose Sabogal dominated the cultural scene in Peru. A subsequent reaction among Peruvian artists led to the beginning of modern Peruvian painting. Sabogal's resignation as director of the National School of Arts in 1943 coincided with the return of several Peruvian painters from Europe who revitalized "universal" and international styles of painting in Peru. During the 1960s, Fernando de Szyszlo, an internationally recognized Peruvian artist, became the main advocate for abstract painting and pushed Peruvian art toward modernism. Peru remains an art-producing center with painters such as Gerardo Chavez, Alberto Quintanilla, and Jose Carlos Ramos, along with sculptor Victor Delfin, gaining international stature. Promising young artists continue to develop now that Peru's economy allows more promotion of the arts.

HISTORY
When the Spanish landed in 1531, Peru's territory was the nucleus of the highly developed Inca civilization. Centered at Cuzco, the Inca Empire extended over a vast region from northern Ecuador to central Chile. In search of Inca wealth, the Spanish explorer Francisco Pizarro, who arrived in the territory after the Incas had fought a debilitating civil war, conquered the weakened people. The Spanish had captured the Incan capital at Cuzco by 1533 and consolidated their control by 1542. Gold and silver from the Andes enriched the conquerors, and Peru became the principal source of Spanish wealth and power in South America.

Pizarro founded Lima in 1535. The viceroyalty established at Lima in 1542 initially had jurisdiction over all of South America except Portuguese Brazil. By the time of the wars of independence (1820-24), Lima had become the most distinguished and aristocratic colonial capital and the chief Spanish stronghold in America.

Peru's independence movement was led by Jose de San Martin of Argentina and Simon Bolivar of Venezuela. San Martin proclaimed Peruvian independence from Spain on July 28, 1821. Emancipation was completed in December 1824, when Gen. Antonio Jose de Sucre defeated the Spanish troops at Ayacucho, ending Spanish rule in South America. Spain made futile attempts to regain its former colonies, but in 1879 it finally recognized Peru's independence.

After independence, Peru and its neighbors engaged in intermittent territorial disputes. Chile's victory over Peru and Bolivia in the War of the Pacific (1879-83) resulted in a territorial settlement. Following a clash between Peru and Ecuador in 1941, the Rio Protocol--of which the United States is one of four guarantors--sought to establish the boundary between the two countries. Continuing boundary disagreement led to brief armed conflicts in early 1981 and early 1995, but in 1998 the governments of Peru and Ecuador signed a historic peace treaty and demarcated the border. In late 1999, the governments of Peru and Chile likewise finally implemented the last outstanding article of their 1929 border agreement.

The military has been prominent in Peruvian history. Coups have repeatedly interrupted civilian constitutional government. The most recent period of military rule (1968-80) began when Gen. Juan Velasco Alvarado overthrew elected President Fernando Belaunde Terry of the Popular Action Party (AP). As part of what has been called the "first phase" of the military government's nationalist program, Velasco undertook an extensive agrarian reform program and nationalized the fish meal industry, some petroleum companies, and several banks and mining firms.

Because of Velasco's economic mismanagement and deteriorating health, he was replaced by Gen. Francisco Morales Bermudez Cerruti in 1975. Morales Bermudez moved the revolution into a more pragmatic "second phase," tempering the authoritarian abuses of the first phase and beginning the task of restoring the country's economy. Morales Bermudez presided over the return to civilian government in accordance with a new constitution drawn up in 1979. In the May 1980 elections, President Belaunde Terry was returned to office by an impressive plurality.

Nagging economic problems left over from the military government persisted, worsened by an occurrence of the "El Niño" weather phenomenon in 1982-83, which caused widespread flooding in some parts of the country, severe droughts in others, and decimated the schools of ocean fish that are one of the country's major resources. After a promising beginning, Belaunde's popularity eroded under the stress of inflation, economic hardship, and terrorism.

During the 1980s, cultivation of illicit coca was established in large areas on the eastern Andean slope. Rural terrorism by Sendero Luminoso (SL) and the Tupac Amaru Revolutionary Movement (MRTA) increased during this time and derived significant financial support from alliances with the narcotraffickers. In 1985, the American Popular Revolutionary Alliance (APRA) won the presidential election, bringing Alan Garcia Perez to office. The transfer of the presidency from Belaunde to Garcia on July 28, 1985, was Peru's first exchange of power from one democratically elected leader to another in 40 years.

Economic mismanagement by the Garcia administration led to hyperinflation from 1988 to 1990. Concerned about the economy, the increasing terrorist threat from Sendero Luminoso, and allegations of official corruption, voters chose a relatively unknown mathematician-turned-politician, Alberto Fujimori, as president in 1990. Fujimori implemented drastic orthodox measures that caused inflation to drop from 7,650% in 1990 to 139% in 1991. Faced with opposition to his reform efforts, Fujimori dissolved Congress in the "auto-coup" of April 4, 1992. He then revised the constitution; called new congressional elections; and implemented substantial economic reform, including privatization of numerous state-owned companies, creation of an investment-friendly climate, and sound management of the economy.

Fujimori’s constitutionally questionable decision to seek a third term and subsequent tainted victory in June 2000 brought political and economic turmoil. A bribery scandal that broke just weeks after he took office in July forced Fujimori to call new elections in which he would not run. Fujimori fled the country and resigned from office in November 2000. A caretaker government presided over by Valentin Paniagua Corazao took on the responsibility of conducting new presidential and congressional elections, scheduled for April 2001. The new elected government will take office July 28, 2001.

GOVERNMENT
The president is popularly elected for a 5-year term, and the 1993 constitution permits one consecutive re-election. The first and second vice presidents also are popularly elected but have no constitutional functions unless the president is unable to discharge his duties. The principal executive body is the Council of Ministers, headed by a prime minister, all appointed by the president. All presidential decree laws or draft bills sent to Congress must be approved by the Council of Ministers.

The legislative branch consists of a unicameral Congress of 120 members. In addition to passing laws, Congress ratifies treaties, authorizes government loans, and approves the government budget. The president has the power to block legislation with which the executive branch does not agree.

The judicial branch of government is headed by a 16-member Supreme Court seated in Lima. The Constitutional Tribunal interprets the constitution on matters of individual rights. Superior courts in departmental capitals review appeals from decisions by lower courts. Courts of first instance are located in provincial capitals and are divided into civil, penal, and special chambers. The judiciary has created several temporary specialized courts, in an attempt to reduce the large backlog of cases pending final court action. In 1996 a Human Rights Ombudsman's office was created to address human rights issues.

Peru is divided into 24 departments and the constitutional province of Callao, the country's chief port, adjacent to Lima. The departments are subdivided into provinces, which are composed of districts. Authorities below the departmental level are elected.

POLITICAL CONDITIONS
Peru is a republic with a dominant executive branch. Congress President Valentin Paniagua was selected according to Peru’s constitution to head an interim government after President Alberto Fujimori fled the country and resigned in November 2000 in the wake of a bribery scandal and political turmoil resulting from his tainted re-election to a third term in June 2000.

The Paniagua government’s principal objective is to conduct free and fair presidential and congressional elections in April 2001. A new 5-year government will take office in July 2001. The interim government is also investigating a web of corruption under the Fujimori administration run by Fujimori’s closest adviser, Vladimiro Montesinos, and involving a wide range of government, political and business leaders.

Human rights violations by the security forces dropped considerably over the last several years, although there have been numerous accusations of human rights infractions. Reports of torture, and the lack of accountability and due process remain areas of concern. In 1995, the Peruvian congress passed a law that granted amnesty from prosecution to those who committed human rights abuses during the war on terrorism from May 1980 to June 1995. The Peruvian Government established in 1996 the Human Rights Ombudsman's office to address human rights issues and an ad hoc commission to review and recommend for presidential pardon those unjustly detained for terrorism or treason.

ECONOMY
From 1994 through 1997, the economy recorded robust growth driven by foreign direct investment, almost 40% of which was related to the privatization program. In 1998, real GDP fell 0.4%, largely as a result of the "El Niño" weather phenomenon, which led to sharp declines in fishmeal exports, disrupted agriculture, and damaged infrastructure. A stalled privatization program, increased government intervention in markets, and worsening terms of trade also contributed to the poor economic performance. Financial turmoil in Asia, Russia, and Brazil added to the problem, leading to a sharp decline in privatization-related foreign direct investment and dramatic outflows of short-term capital. The economy recovered somewhat in 1999 and 2000, registering growth rates of 1.4% and 3.5%, respectively. But political turmoil dampened growth and investment, and the economy is expected to grow less than 2% in 2001. The Lima Stock Exchange general index fell 34.5% in 2000, but had recovered somewhat by the end of the first quarter of 2001. Inflation remained at record lows, registering about 3.7% in 1999 and 2000. The government's overall budget deficit rose sharply in 1999 and 2000 to about 3.0% of GDP, the result of hikes in government salaries, expenditures related to the 2000 election campaign, higher foreign debt service payments, and lower tax revenues. Peru's macroeconomic stability brought about a substantial reduction in underemployment, from and average of 74% from the late 1980s through 1994 to 43% in the 1995-2000 period. The poverty rate has fallen slightly over the years but remained at 54% in 2000.

Foreign Trade and Balance of Payments
The current account deficit dropped in 2000 to about 2.3% of GDP ($1.3 billion)--from 3.0% in 2000--while merchandise trade registered a small surplus of $100 million compared to a $2.5 billion deficit (4.3% of GDP) in 1998. Exports grew by 7.6% to $7.54 billion, while imports grew 1.7% to $7.46 billion. After being hit hard by El Niño in 1998, fisheries exports have recovered, and minerals and metals exports should record an increase of about 10% in 2001. Imports may register a small increase in all categories in 2001. After several years of substantial growth, foreign direct investment not related to privatization has fallen dramatically to levels not seen in a decade. Short-term capital and portfolio investment are expected to register a combined outflow of $600 million, continuing a trend that began in 1998 with the Russian financial crisis. Net international reserves at the end of March 2001 stood at $8.0 billion, down from $8.2 billion at the end of 2000.

Foreign Investment
The Peruvian Government actively seeks to attract both foreign and domestic investment in all sectors of the economy. International investment was spurred by the significant progress Peru made during the 1990s toward economic, social, and political stability, but it slowed again after the government delayed privatizations and as political uncertainty increased in 2000. While Peru was previously marked by terrorism, hyperinflation, and government intervention in the economy, the Government of Peru under former President Alberto Fujimori took the steps necessary to bring those problems under control. Democratic institutions, especially the judiciary, remain weak.

The Government of Peru's economic stabilization and liberalization program lowered trade barriers, eliminated restrictions on capital flows, and opened the economy to foreign investment, with the result that Peru now has one of the most open investment regimes in the world. Between 1990 and 2000, Peru attracted more than $15 billion in foreign direct investment in Peru, after negligible investment during the 1980s, mainly from Spain, the United States, the United Kingdom, Panama, and Netherlands. The basic legal structure for foreign investment in Peru is formed by the 1993 constitution, the Private Investment Growth Law, and the November 1996 Investment Promotion Law. Although Peru does not have a bilateral investment treaty with the United States, it has signed an agreement (1993) with the Overseas Private Investment Corporation concerning OPIC-financed loans, guarantees, and investments. Peru also has committed itself to arbitration of government-to-government investment disputes under the auspices of ICSID--the World Bank's International Center for the Settlement of Investment Disputes.

Economic Outlook
Forecasts for the medium- and long-term remain bright, as political uncertainty diminishes with the inauguration of a new government. In the near term, real GDP is expected to grow 1.5% in 2001. Inflation is likely to fall again slightly, to about 3.6%, while the budget deficit is expected to fall to about 1.9% of GDP as the result of a reduced government spending. Private investment is estimated to drop further, by some 1.5% in 2001, also as a result of near-term political uncertainty, but is likely to increase after the new government takes office in July 2001. Exports are expected to rise by 4.6%. The unemployment and underemployment indexes (7.4 % and 42.9%, respectively, in the third quarter of 2000) are expected to rise in 2001. However, the country is likely to attract both domestic and foreign investment in the tourism, mining, petroleum and natural gas, and electric power industries once the new government takes office.

Narcotics
The fight against narcotics trafficking in Peru has resulted in an unprecedented 70% reduction since 1995 in the number of acres of illegal coca leaf under cultivation. The impact of this illicit industry to the national economy is difficult to measure, but estimates range from $300-$600 million. An estimated 200,000 Peruvians are engaged in the production, refining, or distribution of the narcotic. Many economists believe that large flows of dollars into the banking system contribute to the traditional depression in the dollar exchange rate vis-a-vis the sol, and create a climate in which money-laundering can flourish. The Central Bank engages in open market activities to prevent the price of the sol from rising to levels that would otherwise hurt Peruvian exports.

Hurt economically by successful Peruvian Air Force interdiction efforts in the mid-1990s, drug traffickers are now using land and river routes as well as aircraft to transport cocaine paste and, increasingly, cocaine hydrochloride (HCL) around and out of the country. Peru continues to arrest drug traffickers and seize drugs and precursor chemicals, destroy coca labs, disable clandestine airstrips, and prosecute officials involved in narcotics corruption.

Working with the U.S. Agency for International Development (USAID), the Peruvian Government carries out alternative development programs in the leading coca-growing areas in an effort to convince coca farmers not to grow that crop. Although the government previously eradicated only coca seed beds, in 1998 and 1999 it began to eradicate mature coca being grown in national parks and elsewhere in the main coca growing valleys. In 1999 the government eradicated over 15,000 hectares of coca; this figure declined to 6,500 hectares in 2000, due largely to political instability. The government agency "Contradrogas," founded in 1996, facilitates coordination among Peruvian Government agencies working on counternarcotics issues.

FOREIGN RELATIONS
In October 1998, Peru and Ecuador signed a peace accord which definitively resolved border differences which had, over the years, resulted in armed conflict. Peru and Ecuador are now jointly coordinating an internationally sponsored border integration project. The United States Government, as one of four guarantor states, was actively involved in facilitating the 1998 peace accord between Peru and Ecuador and remains committed to its implementation. The United States has pledged $40 million to the Peru-Ecuador border integration project and another
$4 million to support Peruvian and Ecuadorian demining efforts along their common border.

In November 1999, Peru and Chile signed three agreements which put to rest the remaining obstacles holding up implementation of the 1929 Border Treaty. (The 1929 Border Treaty officially ended the 1879 War of the Pacific.) In December 1999, President Fujimori made the first visit ever to Chile by a Peruvian head of state.

Peru has been a member of the United Nations since 1949, and Peruvian Javier Perez de Cuellar served as UN Secretary General from 1981 to 1991. Former President Fujimori’s tainted re-election to a third term in June 2000 strained Peru's relations with the United States and with many Latin American and European countries, but relations improved with the installation of an interim government determined to ensure free and fair elections in 2001. Peru is planning full integration into the Andean Free Trade Area. In addition, Peru is a standing member of APEC and the WTO, and is an active participant in negotiations toward a Free Trade Area of the Americas (FTAA).


The United States enjoys strong and cooperative relations with Peru. Relations were strained following the tainted re-election of former President Fujimori in June 2000, but improved with the installation of an interim government committed to holding free and fair presidential and congressional elections in April 2001. The United States continues to promote the strengthening of democratic institutions and human rights safeguards in Peru.

The United States and Peru cooperate on efforts to interdict the flow of narcotics, particularly cocaine, to the United States. The Peruvian Air Force has successfully interdicted narcotics trafficking via air to surrounding countries. Bilateral programs are now in effect to reduce the flow of drugs on Peru's extensive river system and to perform ground interdiction in tandem with successful law enforcement operations. The United States and Peru cooperate on promoting programs of alternative development in coca-growing regions.

U.S. investment and tourism in Peru have grown substantially in recent years. U.S. exports to Peru were valued at $2.4 billion in 2000, accounting for about 30% of Peru's imports. In the same year, Peru exported $2 billion in goods to the United States, accounting for about 30% of Peru's exports to the world.

About 200,000 U.S. citizens visit Peru annually for business, tourism , and study. About 10,000 Americans reside in Peru, and more than 400 U.S. companies are represented in the country.

U.S. Economic Assistance
U.S. bilateral assistance to Peru, including food aid and disaster relief and rehabilitation, totaled more than $1.3 billion during the 1990-2000 period. The USAID program in Peru is its second-largest in Latin America.

U.S. assistance to Peru is focused on six strategic objectives: broader citizen participation in democratic processes; increased incomes of the poor; improved health of high-risk populations, including family planning; improved environmental management; reduced illicit coca production in target areas of Peru; and expanded educational opportunities for women. Additionally, a new initiative is being developed to support the consolidation of the peace agreement signed between Peru and Ecuador. The initiative would contribute to improved living conditions of the population in the border region and thus show tangible benefits of the peace accords.

Democracy.
U.S. assistance seeks to strengthen democratic institutions; promote more effective local governments; promote and protect human rights; foster citizen participation; and strengthen women's participation in decisionmaking processes. Through USAID, the United States is providing more than $7 million to support the 2001 election process.

Reducing poverty.
USAID aims to improve the policy environment for private sector-led growth; expand access to markets; improve production; improve access to and distribution of food resources; and improve access to public utilities in poverty areas. U.S. food assistance programs reach about 1.7 million poor Peruvians annually in rural highlands and jungle areas, where the majority of the extreme poverty is found.

Health.
U.S. assistance is improving child survival and maternal health services--such as immunization, diarrheal control, and prenatal care--and strengthening and expanding the participation of public and private sector entities in HIV/AIDS prevention. In family planning, activities with the NGO sector include efforts to strengthen the capacity of NGOs to supply family planning methods in urban and rural areas; increase the sustainability of the supply of contraceptives; and disseminate information on family planing methods and services. USAID's support to the Ministry of Health has made substantial improvements in this area. Infant mortality rate fell from 57 per 1,000 births in 1991 to 42 in 1997 while immunization campaigns for children younger than 1 reached 97.5% coverage.

Environment.
USAID's strategy focuses on improving the legal, policy, regulatory, and normative environment and natural resource framework; promoting pollution prevention in selected peri-urban and industrial settings; and protecting natural resources, including biological diversity and fragile ecosystems. USAID has provided important assistance to the Peruvian Government to improve the legal, regulatory, and policy framework that established clearer rules on environmentally sustainable natural resource use. Among these were the National Environmental Council's Structural Framework for Environmental Management, the Ministry of Industry's Environmental Regulation, the Framework Law for Sustainable Use of Natural Resources, and the Pollution Prevention Oriented Environmental Framework Legislation for the Fisheries and related industries.

Alternative development.
USAID seeks to reduce coca leaf cultivation through alternative development and environmental protection programs, as well as to reduce drug use and addition through prevention, awareness and rehabilitation programs. It also seeks to increase the commitment of farmers and communities to reduce illicit coca production voluntarily. USAID, together with Peruvian and U.S. law enforcement actions, has contributed to a 70% reduction of hectares devoted to coca cultivation (from 115,300 Ha in 1995 to 34,000 Ha) in 2000. As a result, over the same period the capacity of Peru to produce cocaine hydrochloride, or HCl, declined from 525 tons to 145 tons. As of 1998, the total gross agricultural production value of the alternative crops in targeted areas outweighed the total gross production value of coca leaf by 39%. As a result, over 2,600 new jobs were created and more than 20,000 farmers were assisted in production, quality improvement, processing and marketing for licit crops such as coffee, cacao, livestock, and agroforestry, on nearly 25,000 hectares.

Education.
This strategic objective is aimed at assisting the Government of Peru and civil society organizations to develop initiatives that address critical constraints to basic education of girls in rural areas in Peru. As a result, USAID has contributed to the establishment of a National Network for Girls' Education in Peru, with the participation of GOP sectoral ministries, NGOs, universities, the business community, and donors. This national network has been very active in increasing consciousness about the importance of girls' education in Peru.

 

 

 

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