Flag of Peru is three equal, vertical bands of red on hoist side,
white, and red with the coat of arms centered in the white
band.
PROFILE
OFFICIAL
NAME:
Republic of
Peru
Geography
Area: 1.28 million sq. km. (496,225 sq. mi.). Peru is the
third-largest country in South America
and is approximately three times the size
of
California.
Cities: Lima (capital), Arequipa, Chiclayo, Cuzco, Huancayo, Ica,
Trujillo, Ayacucho, Piura, Iquitos,
Chimbote.
Terrain: Western arid coastal plains, central rugged Andean
mountains, and eastern lowlands with tropical forests
that are part of the Amazon basin. Climate: Arid
and mild in coastal area, temperate to frigid in the Andes, and warm
and humid in the jungle
lowlands.
People
Nationality:
Peruvian.
Ethnic groups: Indigenous (45%), mixed background ("mestizo") (37%),
European (15%), African, Japanese, Chinese, and other
(3%).
Population (July 2007 est.): 28.6 million. Approximately 30% of
the population
lives in the Lima/Callao metropolitan
area.
Annual population growth rate (2007 est.):
1.28%.
Religions: Roman Catholic (81%), other
(10%).
Languages: Spanish is the principal language. Quechua, Aymara and
other indigenous languages also have
official
status.
Education: Years compulsory--11. Attendance--92% ages 6-11, and 66%
ages 12-16. Literacy--95% in urban areas, 77%
in rural
areas.
Health: Infant mortality rate (2006)--29.96/1,000. Life expectancy
(2007) --68.33 years male; 72.04 years
female.
Unemployment in Lima (2006): 8.5%; underemployment (2006):
49.5%.
Government
Type: Constitutional
republic.
Independence: July 28,
1821.
Constitution: December 31,
1993.
Branches: Executive--President, two Vice Presidents, and a Council
of Ministers led by a Prime
Minister. Legislative--Unicameral
Congress.
Judicial--Four-tier court structure consisting of Supreme Court and
lower
courts.
Administrative divisions: 25 departments subdivided into 180
provinces and 1,747
districts.
Political parties: Alianza Popular Revolucionaria Americana (APRA),
National Unity (UN), Peru Posible (PP), Popular Action (AP), Union
for Peru (UPP), Solucion Popular, Somos Peru
(SP).
Suffrage: Universal and mandatory for citizens 18 to
70.
Economy
GDP (2006): $93.3
billion.
Annual growth rate (2006):
8.0%.
Per capita GDP (2006):
$3,368.
Natural resources: Iron ore, copper, gold, silver, zinc, lead,
fish, petroleum,
natural gas, and
forestry.
Manufacturing (16.7% of GDP, 2006): Types--Food and beverages,
textiles and apparel, nonferrous and precious metals,
nonmetallic minerals, petroleum refining,
paper, chemicals, iron and steel,
fishmeal.
Agriculture (9.2% of GDP, 2006): Products--Coffee, asparagus,
paprika, artichoke, sugarcane,
potato, rice, banana, maize, poultry, milk, others.
Other sectors (by percentage of GDP in 2006): Services (44.9%),
mining (6.8%), construction
(5.8%), fisheries
(0.6%).
Trade: Exports (2006)--$23.7 billion: gold, copper, fishmeal,
petroleum, zinc, textiles, apparel, asparagus
and coffee. Major markets (2005)--U.S. (30%), China
(11%), Chile (6.6%), Canada (6.0%), Switzerland (4.6%), Japan
(3.6%), Spain (3.3%), Netherlands (3.1%). Imports (2005)--$14.9
billion: machinery, vehicles, processed food,
petroleum and steel. Major suppliers (2005)--U.S.
(17.7%), China (8.5%), Brazil (8.2%), Ecuador (7.3%), Colombia
(6.2%).
PEOPLE
Peru is the fifth most populous country in Latin America (after
Brazil, Mexico, Colombia and
Argentina). Twenty-one cities have a population of
100,000 or more. Rural migration has increased the urban population
from 35.4% of the total population in 1940 to
an estimated 74.6% as of 2005.
Most Peruvians are either Spanish-speaking mestizos--a term that
usually refers to a mixture of indigenous and
European/Caucasian--or Amerindians, largely
Quechua-speaking indigenous people. Peruvians of European
descent make up about 15% of the population. There
also are small numbers of persons of African, Japanese, and Chinese
ancestry. 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 large-scale migration from rural to urban areas, a
more homogeneous national culture is developing, mainly
along the relatively more prosperous coast. 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.
HISTORY, GOVERNMENT, AND POLITICAL
CONDITIONS
The Inca Empire and Spanish
Conquest
When the Spanish landed in 1531, Peru's territory was the nucleus of
the highly developed Inca civilization.
Centered at Cuzco, the Incan Empire
extended over a vast region from northern Ecuador to central Chile. In
search of Inca wealth, the Spanish conqueror Francisco Pizarro, who
arrived in the territory after the Incas had fought a
debilitating civil war, conquered the weakened people. The Spanish
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 the
Spanish colonies in South America. By the time of the wars of
independence (1820-24), Lima had become one of the most distinguished
and aristocratic colonial capital and the chief Spanish
stronghold in the
Americas.
Independence
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 Venezuelan General
Antonio Jose de Sucre defeated the Spanish troops
at Ayacucho, ending Spanish rule in
South America. Spain subsequently 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 in
which Peru ceded the department of Tarapaca and the
provinces of Tacna and Arica to Chile. In 1929, Chile returned Tacna
to Peru. Following a clash between Peru and
Ecuador in 1941, the Rio Protocol--of which the United States is one
of four guarantors (along with Argentina, Brazil and Chile)--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 an historic peace treaty
and demarcated
the border. In late 1999, the governments of Peru and
Chile likewise implemented the
last outstanding article of their 1929
border agreement. Peru and Chile
still dispute the sea
boundary.
Contemporary
History
Military Rule and Return to Democracy
(1968-1980)
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
fishmeal industry, some petroleum and mining
companies, and several
banks.
Because of Velasco's economic mismanagement and deteriorating health,
he was replaced in 1975 by Gen. Francisco Morales Bermudez. Morales
Bermudez tempered the
authoritarian abuses of the Velasco administration and began the task
of restoring the country's economy. Morales Bermudez presided over the
return to civilian government under a new constitution and in the May
1980 elections, President Belaunde Terry was returned to
office by an impressive
plurality.
Instability in the 1980s
(1982-1990)
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 fishing industry. The fall
in
international commodity prices to their lowest levels since the
Great Depression combined
with the natural disasters to decrease
production, depress wages,
exacerbate unemployment, and spur inflation. The
economic collapse was reflected in worsening
living conditions for Peru's poor and provided a
breeding ground for social and political discontent. The emergence of
the terrorist group Sendero Luminoso (Shining Path) in rural areas
in 1980--followed shortly thereafter by the
Tupac Amaru Revolutionary Movement (MRTA) in Lima--sent the
country further into chaos. The terrorists were
financed in part from alliances with narcotraffickers, who had
established a stronghold in the Peruvian Andes during this period.
Peru and Bolivia became the largest coca producers in the world,
accounting for roughly four-fifths of the production in South
America.
The Fujimori Decade
(1990-2000)
Economic mismanagement by the GarcÃa 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 felt he had a mandate for
radical change. He immediately implemented drastic economic
reforms to tackle inflation (which dropped from 7,650% in 1990
to 139% in 1991), but found opposition to further drastic measures,
including dealing with the growing insurgency. On April 4, 1992,
Fujimori dissolved the Congress in the "auto-coup," revised
the constitution, and
called new congressional elections. With a more pliant
Congress, Fujimori proceeded to govern unimpeded. Large segments of
the judiciary, the military and the
media were co-opted by Fujimori's security advisor, the
shadowy Vladimiro Montesinos. The government unleashed
a counterattack against the
insurgency that resulted in countless human right abuses and
eventually quashed the Shining Path and MRTA. During this time he
also privatized state-owned companies, removed investment barriers
and significantly improved public
finances.
Fujimori's constitutionally questionable decision to seek a third
term, and subsequent tainted electoral victory in June 2000,
brought political and economic turmoil. A
bribery scandal that broke just weeks after he began his third term
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 under Valentin Paniagua presided
over new presidential and congressional elections in April 2001. The
new elected government, led by President Alejandro Toledo, took office
July 28,
2001.
The Toledo Administration
(2001-2006)
The Toledo government successfully consolidated Peru's return to
democracy, a process that had begun under President Paniagua. The
government undertook initiatives to implement the
recommendations made by the Truth
and
Reconciliation Commission (TRC), which had been charged with studying
the circumstances surrounding the human rights
abuses and violations committed between 1980 and 2000.
Criminal charges for corruption and human rights
violations were brought against former President Fujimori, who is in
Chile fighting efforts to extradite him to Peru. Despite
being a frequent target of media criticism, Toledo maintained strong
commitments to freedom of the
press.
Under President Toledo, Peru signed a Trade Promotion Agreement (TPA)
with the U.S., to replace the Andean Trade Preferences
and Drug Eradication Act, which was due to expire in December
2006. Toledo also unveiled
the
construction of a road that will connect Brazil and Peru's isolated interior
to the Pacific
coast.
Toledo's economic management led to an impressive economic boom in
Peru that remains strong. Poverty reduction has been uneven, however.
Although poverty in some areas has decreased by up to 37% over the
last five years, nationally it has only decreased by 5% and over half
of Peruvians are still considered to be living below the
poverty line (living on less than $2 a day). In 2005 the
government implemented "Juntos," a program to double the income of
people living under extreme poverty (less than $1 a
day).
Constitution and Political
Institutions
The president is popularly elected for a five year term. A
constitutional amendment passed in 2000 prevents
reelection. 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, comprised of 15 members
and headed by a prime minister. The
president appoints its members, who must be ratified by the
Congress. All Executive laws 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 judicial branch of government is headed by a 16-member Supreme
Court. 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.
Peru is divided into 25 regions. The regions are subdivided into
provinces, which are composed of districts. High authorities in
the regional and local levels are elected. The country's latest
decentralization program is in hiatus
after the proposal to merge departments was defeated in a
national referendum in October
2005.
Peru maintains an embassy in the United States at 1700 Massachusetts
Avenue, NW, Washington, DC 20036 (tel. (202) 833-9860/67, consular
section: (202) 462-1084). Peru has consulates in
Atlanta, New York, Paterson (NJ), Miami, Chicago,
Houston, Denver, Los Angeles, San Francisco, Boston, and Hartford.
ECONOMY
Peru's economy has shown strong growth over the past five years,
helped by market-oriented economic reforms and
privatizations in the 1990s, and
measures taken since 2001 to promote trade and attract investment.
GDP grew 8.0% in 2006, 6.7% in 2005, 4.8% in 2004, 4.0 in 2003,
and 4.9% in 2002. President Alan Garcia and
his economic team have continued these policies. GDP is
projected to grow by more than 7% in 2007. Recent economic expansion
has been driven by construction, mining, export growth, investment,
and domestic demand. Inflation is
projected to remain under 2% in 2007, and the fiscal deficit is
only 0.6% of GDP. In 2006 external debt decreased to $28.3 billion,
and foreign reserves were a record $17.3 billion at the end of
2006.
Peru's economy is well managed, and better tax collection and growth
are increasing revenues, with expenditures
keeping pace. Private investment is rising and becoming
more broad-based. The government has had success with
recent international bond issuances, resulting in ratings upgrades.
The Garcia administration is studying
decentralization initiatives, and is
focused on bringing more small businesses into the formal
economy.
Foreign
Trade
Peru and the U.S. signed the U.S.-Peru Trade Promotion Agreement
(PTPA) on April 12, 2006 in Washington, DC. The PTPA was
ratified by the Peruvian Congress on
June 28, 2006, but has not yet been ratified by the
U.S. Congress. On
December 9, 2006, the U.S. Congress extended the Andean Trade
Preference Act (ATPA) as amended by the Andean Trade Promotion and
Drug Eradication Act (ATPDEA)--jointly
referred to as ATPA/ATPDEA--through June 2007. On June
30, 2007 the President signed legislation extending ATPA/ATPDEA for an
additional 8
months.
Peru registered a trade surplus of $8.8 billion in 2006. Exports
reached $23.7 billion, partially as a result
of high mineral prices. Peru's major trading
partners are the U.S., China, EU, Chile and Japan. In 2006, 23.0% of
exports went to the U.S. ($5.9 billion) and 16.0% of imports came from
the U.S. ($2.9 billion). Exports include gold, copper,
fishmeal, petroleum, zinc, textiles, apparel, asparagus and coffee.
Imports include machinery, vehicles, processed food, petroleum and
steel. Peru belongs to the Andean Community, the
Asia-Pacific Economic Cooperation (APEC) forum, and the World
Trade Organization
(WTO).
Foreign
Investment
The Peruvian Government actively seeks to attract both foreign and
domestic investment in all sectors of the economy. The
registered stock of foreign direct investment (FDI)
is over $15.4 billion, with the U.S., Spain, and the United Kingdom
the leading investors. FDI is concentrated
in
telecommunications, mining, manufacturing, finance and
electricity.
Mining and
Energy
Peru is a source of both natural gas and petroleum. In August 2004,
Peru inaugurated operations of the Camisea
natural gas project. Camisea gas is fueling an
electricity generator and six industrial plans in Lima, with other
facilities in the process of switching to gas. In a second phase,
liquefied natural gas (LNG) will be exported to the west coast
of the United States and Mexico. The gas and condensates from Camisea
are equivalent to some 2.4 billion
barrels of oil, approximately seven times the size of Peru's proven
oil reserves. The Camisea project, when completed, is expected to
gradually transform Peru's economy, catalyze national
development and turn Peru into a net energy
exporter.
Peru is the world's second-largest producer of silver, sixth-largest
producer of gold and copper, and a significant source of the world's
zinc and lead. Mineral exports have consistently
accounted for the most significant portion of Peru's export revenue,
averaging around 50% of total earnings from 1998 to 2005 and 62% in
2006.
FOREIGN
RELATIONS
Peru generally enjoys friendly relations with its
neighbors.
In November 1999, Peru and Chile signed three agreements that 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 late 2005, a declaration of
maritime borders by Peru's Congress set off a new
round of recriminations with Chile, which claims that the maritime
borders were agreed to in fishing pacts dating from the
early 1950s. In contrast, the Garcia administration has recently made
overtures to Chile, aimed at
improving that
relationship.
In October 1998, Peru and Ecuador signed a peace accord to resolve
once and for all border differences that had sparked violent
confrontations. Peru and Ecuador are now jointly coordinating an
internationally sponsored border integration
project. The U.S. 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 1998, Peru became a member of the Asia-Pacific Economic
Cooperation (APEC) forum, facilitating closer ties and economic
relations between Peru and Asian nations. Peru will host the APEC
Summit in
2008.
Peru has been a member of the United Nations since 1949, and is a
member of the Security Council. Peruvian Javier Perez de
Cuellar served as UN Secretary General from 1981 to
1991.
Peru maintains 210 troops in peacekeeping operations in Haiti under
the UN's
MINUSTAH.
U.S.-PERUVIAN
RELATIONS
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 in November 2000 and
the inauguration of the government of
Alejandro Toledo in July 2001. Relations with President
Garcia's
administration are positive. The United States continues to promote
the strengthening of democratic
institutions and human rights safeguards in Peru and the integration
of Peru into the world
economy.
The United States and Peru cooperate on efforts to interdict the flow
of narcotics, particularly cocaine, to the
United States. Bilateral programs are now in effect to reduce the flow
of drugs through Peru's port systems and to perform ground
interdiction in tandem with successful law
enforcement operations.
These U.S. Government-supported law enforcement efforts
are complemented by an aggressive
effort to establish an alternative development program for coca
farmers in key coca growing areas to voluntarily reduce and eliminate
coca cultivation. This effort is funded by the Department
of State's Bureau of
International Narcotics and Law Enforcement Affairs (INL) and
the U.S. Agency for International Development
(USAID).
U.S. investment and tourism in Peru have grown substantially in
recent years. The U.S. is Peru's number one trade partner, and
economic and commercial ties will deepen if the U.S.-Peru Trade
Promotion Agreement (PTPA) is passed by the U.S.
Congress.
About 200,000 U.S. citizens visit Peru annually for business,
tourism, and study. About 16,000 Americans reside in
Peru, and more than 400 U.S.
companies are represented in the
country.
The U.S. Embassy in Peru is located at Avenida Encalada, Cuadra 17
s/n, Monterrico (Surco), Lima 33 (tel.
(511) 434-3000; fax. (511) 434-3037. Home page: http://lima.usembassy.gov/
The embassy is open from 8:00 a.m. to 5:00 p.m., Monday-Friday,
except U.S. and some Peruvian holidays. The mailing address
from the United States is American Embassy Lima,
APO AA 34031 (use U.S. domestic postage rates). The
American Citizen Services section is open to the public from 8:00 a.m. to
12: 00
p.m.
The Consular Agency in Cuzco is located at Anda Tullamayu 125 (tel.
(51) (84) 224112 or (51) (84) 239451; fax. (51) (84) 233541). The
USAID Building is located at Av. Encalada cdra. 17
s/n, Monterrico (Surco) Lima 33, (tel. (511)
618-1200.
Other Contact
Information
U.S. Department of
State
Bureau of Western Hemisphere
Affairs
Office of Andean Affairs (Room
5906)
2201 C Street
NW
Washington, DC
20520-6263
Tel:
202-647-4177
Fax:
202-647-2628
Home Page: http://www.state.gov/
U.S. Department of
Commerce
International Trade
Administration
Office of Latin America and the
Caribbean
14th and Constitution,
NW
Washington, DC
20230
Tel: (202)
482-0475
(800)
USA-TRADE
Fax: (202)
482-0464
Home Page: http://trade.gov/
American Chamber of Commerce of
Peru
Avenida Ricardo Palma 836,
Miraflores
Lima 18,
Peru
Tel: (511)
241-0708
Fax: (511)
241-0709
E-Mail: [email protected] Home Page: http://www.amcham.org.pe/
TRAVEL AND BUSINESS
INFORMATION
The U.S. Department of State's Consular Information Program advises
Americans traveling and residing abroad through Consular Information
Sheets, Public Announcements, and Travel Warnings.
Consular Information Sheets exist for all countries and include
information on entry and exit requirements, currency
regulations, health conditions, safety and security, crime,
political disturbances, and
the addresses of the U.S. embassies and consulates abroad. Public
Announcements are issued to disseminate information quickly
about terrorist threats and other relatively
short-term conditions overseas that pose significant
risks to the security of American travelers. Travel Warnings are
issued when the State Department recommends that Americans avoid travel
to a certain country because the situation is dangerous or
unstable.
For the latest security information, Americans living and traveling
abroad should regularly monitor the Department's Bureau
of Consular Affairs Internet web site at http://www.travel.state.gov, where the
current Worldwide Caution, Public Announcements, and Travel Warnings
can be found. Consular Affairs Publications,
which contain information on obtaining passports and planning a safe
trip abroad, are also available at http://www.travel.state.gov.
For additional information on international
travel, see http://www.usa.gov/
Citizen/Topics/Travel/International.shtml.
The Department of State encourages all U.S citizenstraveling or
residing abroad to register via the State
Department's travel registration website or at the nearest U.S.
embassy or consulate abroad. Registration will make your presence and
whereabouts known in case it is necessary to contact you in an
emergency and will enable you to receive up-to-date information on
security
conditions.
Emergency information concerning Americans traveling abroad may be
obtained by calling 1-888-407-4747 toll free in the U.S. and
Canada or the regular toll line 1-202-501-4444 for
callers outside the U.S. and
Canada.
The National Passport Information Center (NPIC) is the U.S.
Department of State's single, centralized public
contact center for U.S.
passport
information. Telephone: 1-877-4USA-PPT (1-877-487-2778). Customer
service representatives and operators for TDD/TTY
are available Monday-Friday, 7:00 a.m. to 12:00 midnight,
Eastern Time, excluding federal
holidays.
Travelers can check the latest health information with the U.S.
Centers for Disease Control and Prevention in Atlanta, Georgia.
A hotline at 877-FYI-TRIP (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm
give the most recent health advisories, immunization recommendations
or requirements, and advice on food and drinking water safety for
regions and countries. A booklet entitled "Health
Information for International Travel"
(HHS
publication number CDC-95-8280) is available from the U.S.
Government Printing Office,
Washington, DC 20402, tel. (202)
512-1800.
Further Electronic
Information
Department of State Web Site. Available on the Internet at
http:// www.state.gov, the Department of State web
site provides timely, global access to
official U.S. foreign policy information, including
Background Notes and daily press briefings
along with the directory of key officers of Foreign Service
posts and more. The Overseas Security Advisory Council (OSAC) provides
security information and regional news that impact U.S. companies
working abroad through its website http://www.osac.gov
Export.gov provides a portal to all export-related assistance and
market information offered by the federal
government and provides trade leads, free export counseling, help
with the export process, and
more.
STAT-USA/Internet, a service of the U.S. Department of Commerce,
provides authoritative economic, business, and
international trade information from the Federal
government. The site includes current and
historical
trade-related releases, international market research, trade
opportunities, and country analysis and provides access to the
National Trade Data Bank.
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Peru
