PERU. Republic of Peru
A country in the western part of South America. Area - 1,285,200 km². Capital - Lima (8 million); other major cities: Arequipa, Trujillo, Chiclayo, Iquitos, Cajamarca. Administrative-territorial division - 12 regions, including 24 departments, and 1 autonomous province. Population - 27 million (2004), Peruvians; about 45% are indigenous Quechua and Aymara, about 73% are mestizos. Official languages - Spanish, Quechua, Aymara. Dominant religion - Catholicism. Currency - nuevo sol = 100 centimos.
It has diplomatic relations with the Russian Federation (established with the USSR on November 1, 1969).
National holiday - July 28 - Independence Day (1821).
According to the current constitution (which came into force on December 31, 1993), Peru is a presidential republic. The head of state, as well as the supreme commander-in-chief, is the president, elected by direct secret ballot for a term of 5 years. In November 2000, due to a severe political crisis, President A. Fujimori, while in Japan, announced his early resignation from the position of head of state. In June 2001, in the second round of extraordinary presidential elections, the leader of the "Possible Peru" party, Alejandro Toledo, won. Legislative power belongs to a unicameral parliament - the Congress of the Republic, consisting of 120 deputies elected for a term of 5 years by proportional representation. Executive power is exercised by the president and the government headed by the chairman of the Council of Ministers.
The ruling party is "Possible Peru" (founded in 1999 as an electoral bloc, leader - X. B. Caballero). It is supported by the Independent Front "For High Morality" (leader - F. Olivera).
The main opposition forces in the country are: the Peruvian Aprista Party (PAP; founded in 1924 as the American People's Revolutionary Alliance - ANRA, leader - A. Garcia), center-right parties: the People's Christian Party (PCP; since 1966, leader - A. Flores-Araos) and Popular Action (since 1956, leader - V. Paniagua), the "New Left" movement (leader - A. Moreno), and the "Yes, It Works" party (registered by supporters of former President A. Fujimori; leader - A. Reggiardo).
In 1968, trade unions recreated the General Confederation of Workers of Peru, which had been illegal since 1929. In 1978, the General Peasant Confederation was established. Trade unions controlled by the PAP are united in the Confederation of Workers of Peru (founded in 1944). The National Confederation of Workers is controlled by the PCP.
In the pre-colonial period, the territory of Peru was the center of the Inca Empire. From 1532 to 1536, Peru was conquered by Spanish conquistadors led by F. Pizarro. In 1543, this territory was included in the Viceroyalty of Peru, which encompassed most of South America. Peru's independence was proclaimed on July 28, 1821, during the liberation war of the Spanish colonies in America. A long territorial dispute with Chile (1879-1929) over coastal Peruvian provinces was resolved in 1929 (Tacna was returned to Peru, Arica remained with Chile).
In 1941-42, as a result of the war with Ecuador, Peru secured most of the disputed territory in the Amazon.
In the first half of the 20th century, the dominant position in the national economy of Peru (as in other Latin American countries of that time) belonged to entrepreneurs from the USA. In October 1968, after a military coup, the Revolutionary Government of the Armed Forces came to power, led by General X. Velasco Alvarado. Peru nationalized a number of enterprises owned by American citizens or firms and enacted a land reform law. From 1980 to 1985, a civilian government representing the Popular Action party was in power, and in 1985, the oldest political party in Peru - the Peruvian Aprista Party (PAP) - won.
By the end of the 1980s, the Peruvian economy experienced a deep crisis characterized by a lack of funds to service external debt and hyperinflation. The government that came to power in 1990 under A. Fujimori managed to stabilize the situation in the country through the implementation of a stabilization program and neoliberal structural reforms. Among its achievements is the neutralization of terrorist organizations operating in the country.
Peru is a member of the UN (since 1945), OAS (since 1948), APEC (since 1998), LAI (since 1981), LAES (since 1975), the Andean Community, the Rio Group, the Economic Council of Pacific Basin countries, the Organization for the Prohibition of Nuclear Weapons in Latin America (OPANAL), an associate member of MERCOSUR, and a participant in the Treaty for the Prohibition of Nuclear Weapons in Latin America (Tlatelolco Treaty).
Peru is an agrarian-industrial country with a developed mining industry, classified as a middle-income country on the Latin American continent. The leading sectors of the Peruvian economy are largely oriented towards the external market and are heavily dependent on the dynamics of world prices for exported goods. The underdeveloped agriculture does not meet the population's food needs: its main products are exported.
The government of A. Toledo has generally managed to overcome the consequences of the political crisis of 2000, which negatively affected economic development, causing a decline in business activity and domestic demand, an increase in liquidity deficit, and a decrease in the country's investment attractiveness. Improvement was reflected in the steady growth of macroeconomic indicators: while in 2001 GDP growth was only 0.5%, in the following three years there was a steady increase in this indicator (up to 4.5% in 2004). At the same time, the absolute GDP volume reached $62 billion.
The leading industry is mining (which accounts for about half of foreign exchange earnings). Peru ranks among the top ten global producers and exporters of bismuth, tungsten, gold, indium, cadmium, copper, molybdenum, tin, mercury, lead, selenium, silver, tellurium, and zinc. The country has developed non-ferrous and ferrous metallurgy, textile, leather and footwear, oil refining and petrochemical industries, and fish processing. It ranks first in the world in the production and export of fishmeal. There are some machine engineering enterprises operating based on imported components. A feature of the development of the manufacturing industry is a high level of territorial concentration (most enterprises are located in Lima and its suburbs). The share of industry in GDP is 30%, and in employment - 21%.
The coastal waters of Peru are rich in marine bioresources. The biomass of the economic zone is estimated at 20 million tons, allowing for the extraction of up to 10 million tons annually without harming its reproduction. However, these potential opportunities are not fully realized due to the lack of a modern fishing fleet and protectionist policies.
About 90% of the catch consists of anchovies (anchovy catch in 2004 - 8.6 million tons). The fishing fleet comprises about 700 vessels (mostly of old construction).
Peru has significant energy potential, primarily in hydropower resources (hydroelectric plants provide 81% of electricity), of which approximately 80% comes from the rivers on the Atlantic slope of the Andes, 14.2% from the rivers on the Pacific slope, and 0.8% from Lake
Titicaca. Electricity generation in the country is about 20 billion kWh.
The share of the service sector, including transport and tourism, in GDP is about 60%, and in employment - 64%.
About 15% of the economically active population is employed in agriculture. Approximately 60% of agricultural production volume comes from small and medium producers, 25% from medium latifundia,
4.5% from large agricultural complexes, and 0.8% from agricultural cooperatives. The main agricultural crops are cotton, sugarcane, corn, rice, potatoes, coffee, and cocoa. Pastoral livestock farming is well-developed (cattle, sheep, llamas, alpacas).
The total length of railways is 2,100 km, and of roads - 73,000 km.
There are 49 airports with paved runways.
In 2004, Peru's exports amounted to $12.3 billion, imports to $9.2 billion, and foreign direct investment to about $9 billion. Inflation was 2.5%.
Trade turnover with Russia in 2004 amounted to $69.6 million (exports - $44.7 million, imports - $24.9 million).
Gold and foreign exchange reserves in 2004 amounted to $9.9 billion. External debt is about $22 billion.
Despite generally positive trends in macroeconomic development, the situation in the social sphere remains difficult. 54% of Peruvians live below the poverty line, and 18% live in extreme poverty.
The largest cultural and scientific center of Peru is Lima. It is home to several universities, including one of the oldest in Latin America, San Marcos University. Among the largest newspapers are "Comercio" (200,000 copies), "Expreso" (70,000), "Peruano" (45,000), "Republica" (40,000). The national news agency Agencia de Noticias Andina was established in 1981. The state broadcasting and television service of Peru operates, along with the state "Radio Nacional del Peru," one state and eight private nationwide television channels.