Formerly a Spanish colony, Peru gained independence in 1821 under the leadership of Simón Bolívar. The country has long been ruled by military regimes. Only in 1980, when the new Constitution was approved, did power return into civilian hands. The same year saw the emergence of Sendero Luminoso, an armed Maoist group responsible for the deaths of thousands of people, which has been brutally repressed by government forces. With the terrorism and hyper-inflation of the 1980-90s, things took a new authoritarian turn when President Alberto Fujimori dissolved parliament in 1992 and introduced a new Constitution extending presidential powers. In 2000, however, he was forced to resign and fled the country after being involved in political and financial scandals. Democratic rotation was resumed in 2001. Under the Constitution of 1993, amended several times, the President of the Republic, directly elected for five years, appoints the Prime Minister and oversees the government. The Congress has 130 members elected for a five-year term.

Defence.
Military service is voluntary.

Justice.
The judicial system is based on continental European law.

Economic situation.
The country is heavily dependent on its mineral exports. The rise in prices in 2018-19 and the increase in domestic consumption and public spending for infrastructure have led to an increase in the growth rate compared to 2017, when the effects of the rise in mining production were at a stand-still due to a reduction in public and private investments. Strong fiscal legislation is contributing to keeping the deficit under control and the national debt low.

Primary sector
Agriculture.
Most of the coastal agriculture consists of cash crops, a part of which goes for export: coffee, asparagus, avocados, sugar cane and cotton. Vines are cultivated in all the southern coastal valleys. In the mountain regions, produce includes potatoes and barley in higher areas, wheat up to 2600 m and maize, the staple, up to 3300 m. Coca is widespread here and in Montaña, despite campaigns to eradicate and replace it with other crops (the country is one of the world’s largest producers). Annual average coca production is estimated at 120 000 tonnes. One of the typical Montaña crops is chinchona (quinine).
Forests.
Most of the forests lie far inland (the Montaña) towards the Amazon basin, and contain a wide range of species, including cedar, mahogany and rosewood. There are sawmills at Iquitos and Tingo Maria.
Livestock and fishing.
Livestock farming, mostly sheep and cattle, is widely practised but is insufficient to satisfy the meat and milk requirement of the country. Other livestock includes the llama (milk, meat, pack animal) and the alpaca, which yields fine wool.
Fishing is extremely important (anchovies, mackerel, squids and common dolphinfish), thanks to the abundance of plankton, carried by the Humboldt Current, which sustains large numbers of fish. The main fishing ports are Chimbote, Callao, Chancay, Huacho, Ilo and Huarmey.

Secondary sector
Minerals.
The mineral resources are abundant and varied, and the government has signed prospecting agreements with several foreign companies.
There are oilfields in the north (Lobitos, Parinas, Negritos, Corrientes, Pavayacu, Capahuari and Shiviyacu) and huge natural gas reserves in Aguaytía, Camisea and Pucallpa regions. Modest amounts of coal are mined at Goyllarisquizga (Cerro de Pasco) and Huayday (La Libertad).
Copper mining is very important. The older northern areas of Cerro de Pasco, Morococha and Casapalca, where the mines encircle the foundries at La Oroya and Casapalca, have now been supplemented by new areas in the south (Toquepala, Cuajone and Quellaveco, exported from Ilo) and north (Quiruvilca).
There are abundant silver deposits in the departments of Cajamarca, Pasco, Arequipa, Ancash, Junín, Huancavelica, Lima, Moquegua and La Libertad.
Other important minerals include gold (departments of Cajamarca, La Libertad, Moquegua, Arequipa and Puno), lead (Pasco and Junín), zinc (Ancash, Pasco, Junín and Lima), molybdenum (near Arequipa), iron ore (at Marcona), vanadium and bismuth (around Cerro de Pasco and in Piura department), tungsten (Puno and Ancash), selenium, antimony and phosphates (at Sechura).
Energy and industry.
The hydroelectric potential of the country has yet to be fully exploited, though there is a major hydroelectric plant on the River Mantaro. The major natural gas power plants are located at Callao and Chilca.
Industry mainly centres on mineral refining and processing. The biggest oil refineries are at Lima, Talara, Iquitos and Conchán. The chemical industry has a certain prominence at Callao (nitrogenous fertilizers) and Lima (synthetic fibres). Metal-working is important at La Oroya and Ilo, with iron and steel at Chimbote. Mechanical engineering includes motor-vehicle assembly (Lima) and ship-building (Callao). There are cotton mills at Lima, Ica, Cusco and Arequipa, and smaller wool factories at Lima, Urcos, Maranganí and Huancayo. Panama hats are made at Catacaos, Etén and Calendín. Food industries include milling, rice husking and the production of chancaca (raw, unrefined, non-centrifugal cane sugar).
Fish preservation is also important. Other industries include cement, tobacco, rubber, beer and paper.

Tertiary sector
Foreign trade.
The country has close commercial ties with numerous countries. The main trading partners are China and the USA. The main imports are raw materials, semi-finished goods and machinery.

Main exports
(M US$ - 2017)
copper ores 11 999, gold 7 096, fruit and vegetables 3 037, petroleum products 2 649, refined copper 2 188, zinc ores 2 021, residues and wastes of food industry 1 731, metal ores 1 091, lead ores 1 069, fresh and preserved fish 1 040, apparel and accessories 875, refined zinc 812, natural gas 804, coffee 710, fruit & vegetable juices and preserves 570, plastics 454, iron ores 435, refined tin 374, chemicals 362, fish oil 330, machinery 257, cocoa and derived products 236, silver 213, phosphates 207, wool 184

Finance and banking.
The Banco Central de Reserva acts as Peru’s central bank.

Tourism. Tourism is a major resource, especially in Lima, Cuzco, Machu Picchu, the Amazon forest and Lake Titicaca.

Transport.
The transport networks are insufficient.
The railways exist mainly to serve the mineral industry (the Lima-La Oroya line is the second highest in the world, travelling through a mountain pass at 4829 m).
The main road is the Pan-American Highway running north to south along the coast. Air transport and Amazon river transport are well developed.

Education.
Free education is compulsory from 7 to 16 years but the drop-out rate is high, especially in rural areas.