{puh-roo'} The Republic of Peru extends 2,414 km (1,500 mi) along the western coast of South America. The country is bounded on the north by Ecuador and Colombia, on the east by Brazil and Bolivia, on the south by Chile, and on the west by the Pacific Ocean. Peru declared its independence from Spain in 1821. LAND AND RESOURCES The \TAndes\t Mountains extend across the country from northwest to southeast and divide Peru into three distinct regions: a coastal lowland to the west; the Andean highlands, or Sierra; and the upper Amazon basin, the Montana, to the east of the Andes. Coastal Lowlands The lowlands, about 10% of the total land area, are narrow, only 16 to 160 km (10 to 100 mi) wide, and include the west flank of the Andes (below 1,525 m/5,000 ft). The average temperature at Lima is 18 deg C (65 deg F), and the annual rainfall is 41 mm (1.6 in)--making this one of the world's coolest and driest low-latitude deserts. During the winter a heavy fog (garua) supports a light vegetation cover called loma, and mesquite also grows here. Numerous streams originating in the Andes extend westward to irrigate about 40 oases. Highlands The Andean highlands, 27% of the total land area, extend southeast from the Ecuadorian border the entire length of Peru. Elevations on this high plateau reach from 3,050 to 4,575 m (10,000 to 15,000 ft). Above the plateau higher ranges exceed 6,400 m (21,000 ft). Amazon tributaries have cut deep, longitudinal valleys into the surface of the plateau. Lake \TTiticaca\t is located in the southeastern Sierra. The climate of the Sierra is as varied as its topography. At Cuzco (3,364 m/11,037 ft) the average annual temperature is 16 deg C (60 deg F), and annual rainfall averages about 813 m (32 in). The Sierra is rich in fodder grasses and temperate-zone trees and plants. The alpaca and llama are raised, and the wild guanaco and vicuna are found. Most of Peru's mineral wealth is found in the Sierra. The Montana The Montana region in the east, constituting 56% of the total area, consists of the intricately dissected eastern slopes of the Andes and the gently undulating forested plain of the \TAmazon River\t basin. Average rainfall exceeds 2,540 mm (100 in) annually. The average annual temperature is 25 deg C (77 deg F). The vast tropical forest contains tropical timber trees, such as ebony and mahogany, as well as many rubber trees. Wild animals include the puma and jaguar. PEOPLE Peru's inhabitants are predominantly Indian (54%) and mestizo (of mixed European and Indian heritage, 32%). Europeans make up 12% of the population, and the remainder are mostly black, Japanese, or Chinese. The country is preponderantly Roman Catholic. In 1975, \TQuechua\t, the original Inca language spoken by about one-half of the population, became the second official language, along with Spanish. Fifteen percent of the population speak \TAymara\t. Of the total population, 45% are concentrated in the coastal lowlands; 40%, mostly Quechua-speaking Indians, in the Sierra; and 15%, also mostly Indians, in the Montana. \TLima\t, the capital and major city, and its port of \TCallao\t are the principal cities of the coastal lowlands; \TCuzco\t and Arequipa are the principal cities of the Sierra; and Iquitos on the Amazon is the chief city of the Montana. Education is free and compulsory for children from ages 7 to 16. The National University of San Marcos (1551) in Lima is the oldest university in South America. The state also maintains universities at Arequipa, Cuzco, and Trujillo; a Catholic university is located in Lima. Progress has been made in reducing epidemic diseases, improving sanitation, and expanding medical care, but massive rural-to-urban migration has strained social services. ECONOMIC ACTIVITY Peru, one of the poorest countries in Latin America, has experienced serious economic problems for years. Per capita income in 1985 was approximately the same as it was in 1965. In 1985, arguing that export earnings were needed to stimulate economic growth at home, Peru became the first country in Latin America to limit payments on its huge foreign debt to a percentage of its export earnings. Throughout the 1980s, economic growth scarcely kept pace with population increase. By 1989, with an inflation rate of 8,000% and more than half the work force unemployed or underemployed, the country faced its worst economic crisis of the century. The failed economy spurred the disruptive activities of leftist guerrillas, which in turn further weakened the economy. Agriculture, forestry, and fishing provide about 15% of the gross domestic product (GDP). Farmers in the Sierra grow corn, wheat, barley, and potatoes for food, as well as coca (the source of cocaine), which has become Peru's leading cash crop even though its cultivation is illegal. Joint Peruvian-U. S. efforts to eradicate coca plants have been resisted by planters and guerrillas. Commercial irrigated farming in the coastal oases produces cotton, sugar, and coffee for export. Peru's fish catch was the largest in the world from 1962 until 1972, when the arrival of the warm \TEl Nino\t current caused cool-water species to move elsewhere temporarily. The fishing industry subsequently revived, but El Nino returned during 1983-84. Exports of copper, silver, lead, zinc, and iron provide about 40% of all export income. Petroleum is extracted near Talara on the coast and near Pucallpa in the Amazon basin. In 1987, Peru produced 14.4 billion kW h of electricity. Manufacturing contributes about 23% of the \TGNP\t. The chief export industries are metal refining and smelting and the processing of agricultural and fish products. Most other industry focuses on the production of consumer goods for domestic consumption. The textile, sugar-refining, paper, chemical, automotive, and shipbuilding industries are concentrated on the coast, 60% in the Lima area alone. The processing of forest products and petroleum refining are the leading industries in the Montana. The \TPan American Highway\t runs along the Peruvian coast from Ecuador to Chile. The Central Railroad crosses the Western Cordillera at 4,817 m (15,805 ft)--the highest standard-gauge railroad in the world. Development of the Montana, which contains more than half of Peru's arable land, has been hindered by a lack of adequate transportation. GOVERNMENT In 1968 a coup led by Gen. Juan Velasco Alvarado deposed the civilian government of Fernando \TBelaunde Terry\t. The constitution, dating from 1933, was suspended, and the parliament was dissolved. In 1978 an assembly was elected to draw up a new constitution in preparation for a return (1980) to civilian rule. Elections took place in May 1980, and Belaunde Terry, leader of the left-wing Popular Action party (AP), was returned to office by a wide margin. Five years later support for the AP had evaporated. The 1985 presidential election was won by Alan Garcia Perez of the left-center Popular Revolutionary Alliance (APRA). The 1990 election, won by political newcomer Alberto Fujimori of the Cambio 90 movement, underlined voter disenchantment with traditional politicians. The legislature consists of a 180-member Chamber of Deputies and a 60-member Senate. HISTORY Early Period When the Spanish arrived in Peru in 1531, they found the flourishing empire of the \TInca\t. By the arrival (1532) of Francisco \TPizarro\t, civil war had so weakened the empire that it was easily conquered by the Spanish. In 1535, Pizarro founded Lima, and in 1544 it became the capital of the viceroyalty of Peru. This viceroyalty comprised all the Spanish territory in South America until the creation of the viceroyalties of New Granada (1717) and La Plata (1776). Lima was thus the continent's cultural and economic center. Independence The conquest of Spain by Napoleon I sparked independence movements in most of South America. In Peru, however, where a major Indian revolt led by Tupac Amaru had been suppressed in 1781-82, Spanish authority remained strong. The independence movement, therefore, was led by foreigners. The revolutionary Argentine general Jose de \TSan Martin\t entered Lima in July 1821 and proclaimed (July 28) Peru's independence. San Martin withdrew from Peru in 1822, and the task of wiping out the remnants of the Spanish forces was left to the Colombian leader Simon \TBolivar\t and his general, Antonio Jose de \TSucre\t, in the battles of Junin and Ayacucho (both 1824). A succession of power-hungry generals kept Peru in turmoil until 1845. Border conflicts were frequent, and from 1836 to 1839, Peru was united with Bolivia under the presidency of Andres \TSanta Cruz\t. A period of civil war (1842-45) ended with the emergence of Ramon \TCastilla\t as president of Peru. Castilla, during two periods in office (1845-51, 1855-62), brought about extensive economic and political reforms. Castilla's retirement was followed by a period of internal disorder, corruption, and increasing foreign debt. In 1866, Peru, with the help of Ecuador, Bolivia, and Chile, defeated a Spanish invasion, ostensibly initiated because of Peru's debt. In the 1879 peace treaty Spain recognized Peru's independence for the first time. The first civilian government came to power in 1872, and its president, Manuel Pardo, involved Peru in a secret defense alliance with Bolivia against Chile, which led to Peru's participation (1879-83) in the War of the Pacific (see \TPacific, War of the\t). This war was disastrous for Peru, resulting in the loss of the valuable nitrate fields and leading to the prolonged \TTacna-Arica Dispute\t. The country was left bankrupt and politically unstable. 20th Century The first third of the 20th century was dominated by Augusto Bernardino \TLeguia y Salcedo\t, who served (1908-12) as civilian president and was brought back to power in 1919 by a military coup d'etat. From then until he was deposed in 1930, he ruled as a virtual dictator, despite adoption (1920) of a new and more liberal constitution. Resistance to the government increased after 1924, when APRA was founded by Victor Raul \THaya de la Torre\t. In 1945, after being barred from elections for 20 years, the APRA candidate, Jose Luis Bustamante y Rivera, was elected president, but he was deposed in 1948 by a military junta. In the 1962 presidential elections, Haya de la Torre won by a small plurality, but the military seized power and Fernando Belaunde Terry was elected president in 1963. The subsequent drop in world prices for metals and cotton resulted in budget deficits, spiraling inflation, and poor relations with foreign companies; Belaunde Terry was deposed (1968) by the military. The junta instituted a land-distribution program, establishing farm cooperatives on former privately owned large estates. It also nationalized many industries, including petroleum. Because of greatly increased government spending to finance the programs, by 1975 the country again faced spiraling inflation and a huge foreign deficit. In 1975, Velasco Alvarado's government was replaced by a new military junta led by Gen. Francisco \TMorales Bermudez\t. The regime reversed the balance-of-payments deficit but was unable to control the high level of unemployment and shortages of agricultural products. In July 1980 the junta stepped down in favor of the newly elected civilian government led by Belaunde Terry. Belaunde's efforts to restore normal conditions were hindered by continuing economic problems and, beginning in 1981, by an insurgent movement under the leadership of the Sendero Luminoso (Shining Path), a Maoist revolutionary group. The revolt forced the government to declare a state of emergency in 1983. In the 1985 election, Popular Revolutionary Alliance (APRA) candidate Alan Garcia Perez won the presidency. Garcia Perez took various measures to forestall economic collapse. He restricted repayments to foreign creditors, froze prices, and initiated efforts to fight cocaine trafficking. He also intensified the war against the Shining Path guerrillas, who were steadily gaining strength. Despite such efforts, by 1990 as Alberto Fujimori assumed office, Peru's economic and political problems seemed increasingly entrenched. David G. Basile Bibliography: \TGeneral\t: Cleaves, Peter S., Agriculture, Bureaucracy, and Military Government in Peru (1980); Nyrop, Richard R., ed., Peru: A Country Study, 3d ed. (1981). \Teconomics\t: Fitzgerald, E. V., The Political Economy of Peru (1980); Long, N., and Roberts, B., Miners, Peasants, and Entrepreneurs (1984); Solo, H. de, The Other Path, trans. by J. Abbott (1989); Thorp, Rosemary, and Bertram, Geoffrey, Peru, 1890-1977 (1978). \Thistory\t: Alba, Victor, Peru (1977); Dobyns, Henry F., and Doughty, Paul L., Peru: A Cultural History (1976); Hass, J., et al., eds., The Origins and Development of the Andean State (1987); Hemming, John, The Conquest of the Incas (1970); Keatinge, Richard W., ed., Peruvian Prehistory (1988); Lanning, E. P., Peru before the Incas (1968); Lish, Gordon, Peru (1986); Martin, Luis, Kingdom of the Sun: A Short History of Peru (1974); Mason, J. Alden, Ancient Civilizations of Peru, rev. ed. (1988); Prescott, William H., History of the Conquest of Peru (1931; repr. 1979); Stern, S. J., Peru's Indian Peoples and the Challenge of the Spanish Conquest (1986); Werlich, David, Peru: A Short History (1978). \LPolitic\ls AND \Tgovernment\t: Booth, D., and Sorj, B., eds., Military Reformism and Social Classes: The Peruvian Experience, 1968-80 (1983); Chaplin, David, ed., Peruvian Nationalism (1976); Gorman, S. M., ed., Post-Revolutionary Peru (1982); Hilliker, Grant, The Politics of Reform in Peru (1971); Klaiber, Jeffrey L., Religion and Revolution in Peru, 1824-1976 (1977); Pion-Berlin, D., The Ideology of State Terror (1989); Saba, Raul P., Political Development and Democracy in Peru (1987).