Ancient Peru was dominated by several noticeable Andean civilizations, mostly by Incas, their empire was captured by Spanish conspirators in 1533. In 1821, Peru became independent and consequently the Spanish forces were defeated in 1824. After the military rule of 12 years, democratic leadership was established in Peru in 1980. But the country faced economic problems and there was growth of violence and insurgence. In 1990, the election of President Alberto Fujimori escorted a decade which saw a dramatic change in economy and noticeable progress in suppressing guerrilla activity. But the increasing reliance of the President on authoritarian measures and a slowdown in economy in late 1990’s resulted in huge dissatisfaction with his regime. Fujimori was reelected for the third term in the spring of 2000, but corruption scandals and mounting international pressure led to his dismissal from the Congress in November of that year. In spring 2001 fresh election were held under the leadership of a caretaker government in which Alejandro Toledo was elected as the new head of government. Later, the allegations of corruption hampered his presidency too.
Economy of Peru reflects the varied geography of the state like the Andes further inland, an arid coastal region, tropical lands bordering Brazil and Columbia. The coastal regions of Peru provides for abundant excellent fishing ground while huge amount of mineral resources are found in the mountainous areas. Due to the overdependence on metals and minerals, the economy of Peru is subjected to the fluctuations in the world market. Moreover the lack of infrastructure prevents the trade and investment. Some growth of nearly 4 percent was noticed during the period of 2002-2004 with stable rate of exchange and low inflation. Later the risk premium on Peruvian bonds reached their lowest levels in late 2004, which reflected the confidence of the investor in the government’s prudent fiscal policies and also the openness to investment and trade.
|Map of Peru|