INDIA - PERU

Brief Outline

Machu Picchu

Located on the Pacific coast of South America, Peru is the third largest country in the region (1/3rd the size of India). It is bordered by Brazil, Ecuador, Colombia, Bolivia and Chile. It has a population of around 25 million people, around a third of whom live in the capital Lima. The other main cities include Arequipa, Trujillo, Chiclayo, Piura and Cusco. Nearly half the country is covered by the northern and southern Amazon jungles, while another third lies in the Andean mountains running through it. However, it is the narrow coastal belt that supports the majority of the population. The main language is Spanish, although two other languages - Quechua and Aymara are also used in the Andean highlands. The religion is predominantly Roman Catholicism. Peru has common time zone, 10 ½ hours behind the IST.

The country is extremely rich in natural resources, particularly minerals like copper, zinc, lead, silver, gold, iron, tin, etc. It also has modest reserves of petroleum and natural gas. Major exports include gold, copper, lead, zinc, fish and fish products, coffee, textiles and agricultural products while it imports a variety of semi-finished and manufactured goods. The national currency New Soles is freely convertible and the US Dollar is used for day to day activities in the Peruvian economy.
Peru follows the Presidential form of democracy with an Executive President, although there is a nominal post of President of the Council of Ministers. There is a unicameral legislature directly elected by the people, and an independent judiciary, which follows the "Roman law". Peru also has independent newspapers and television channels.
Peru is a member of a number of regional organisations including the Andean Community and the Rio Group, apart from being member of various international organisations like APEC and UN institutions.

IIn economic terms, Peru has a per capita GDP of US$ 3,931, although there is wide income disparity and widespread poverty. The economy is very liberalised with open import and investment regimes. Spain, UK and the US are the principal investors in Peru while Peru's trade ties are mostly with the US, Japan, the EU and other Latin American countries. After steady growth in the mid-1990s, the Peruvian economy suffered a sharp slowdown from 1998 after the El Niño and the Latin American crisis. Subsequently, political turmoil continued to affect the economy. However, with the swearing in of the new democratically elected Government in 2001, the economy picked up. Some basic economic data is given below :

Foreign Trade (US$ billion)

Principal exports : Gold, Copper, Zinc, Fish and fish products, Textiles, Coffee, Crude oil & derivatives, agricultural products
Major Trading Partners : USA, China, Japan, EU, Brazil, Colombia, Chile, Argentina, Ecuador, Mexico, Venezuela

Reed boat

Historically, before the advent of Spanish rule in the 16th century, Peru was the nucleus of the highly developed Inca civilization. Centred at Cusco, the Inca Empire extended over a vast region from northern Ecuador to central Chile. Pre-Inca cultures, such as Chavin, Paracas, Nazca, Chimu & Tiahuanco developed high quality pottery, textiles and sculpture, which were subsequently absorbed into the Inca Empire by the 15th century. In 1532, the Spanish soldier & adventurer Francisco Pizarro landed in Peru with a force of about 180 men. By guile & by force of arms, Pizarro made the Inca Empire a Spanish possession and in 1542, Spain created the viceroyalty of Peru, which comprised all Spanish South America & Panama, except what is now Venezuela. In the late 18th century, opposition to imperial rule grew throughout Spanish America, led largely by persons of Spanish descent born in South America like Argentine soldier Jose de San Martin. Peruvian independence was proclaimed formally on July 28, 1821 but the struggle against the Spanish was continued later by the Venezuelan revolutionary hero Simon Bolivar. However, post-independence, Peru was governed by alternating periods of civilian rule and military dictatorships. Since 1980, Peru has had democratically elected Governments although a self-coup was undertaken by President Fujimori in 1992, and a new Constitution took effect in December 1993. Subsequently, there was political turmoil and revelations of corruption after the controversial 2000 re-election, leading to the flight of President Fujimori to Japan later that year. After an interim Government, the Government of President Toledo was sworn-in in July 2001 for a 5-year term.

More details about Peru can be found at the following websites: