Peru

Ancient Peru was the seat of several prominent Andean civilizations, most notably that of the Incas whose empire was captured by the Spanish conquistadores in 1533. Peruvian independence was declared in 1821, and remaining Spanish forces defeated in 1824. After a dozen years of military rule, Peru returned to democratic leadership in 1980, but experienced economic problems and the growth of a violent insurgency. President Alberto FUJIMORI's election in 1990 ushered in a decade that saw a dramatic turnaround in the economy and significant progress in curtailing guerrilla activity.

Nevertheless, the president's increasing reliance on authoritarian measures and an economic slump in the late 1990s generated mounting dissatisfaction with his regime. FUJIMORI won reelection to a third term in the spring of 2000, but international pressure and corruption scandals led to his ouster by Congress in November of that year. A caretaker government oversaw new elections in the spring of 2001, which ushered in Alejandro TOLEDO as the new head of government.

• 24 departments (departamentos, singular - departamento) and 1 constitutional province* (provincia constitucional);
• Amazonas, Ancash, Apurimac, Arequipa, Ayacucho, Cajamarca, Callao*, Cusco, Huancavelica, Huanuco, Ica, Junin, La Libertad, Lambayeque, Lima, Loreto, Madre de Dios, Moquegua, Pasco, Piura, Puno, San Martin, Tacna, Tumbes, Ucayali

note: some reports indicate that the 24 departments and 1 constitutional province are now being referred to as regions; Peru is implementing a decentralization program whereby these 25 administrative divisions will begin to exercise greater governmental authority over their territories;

in November 2002, voters chose their new regional presidents and other regional leaders; the authority that the regional government will exercise has not yet been clearly defined, but it will be devolved to the regions over the course of several years

chief of state:

• President Alejandro TOLEDO Manrique (since 28 July 2001);
• note - the president is both the chief of state and head of government;
• additionally two vice presidents are provided for by the constitution, First Vice President Raul DIEZ Canseco (since 28 July 2001) and Second Vice President David WAISMAN (since 28 July 2001)

head of government:

• President Alejandro TOLEDO Manrique (since 28 July 2001);
• note - the president is both the chief of state and head of government;
• additionally two vice presidents are provided for by the constitution, First Vice President Raul DIEZ Canseco (since 28 July 2001) and Second Vice President David WAISMAN (since 28 July 2001)

note: Prime Minister Carlos FERRERO Costa (since 15 December 2003) does not exercise executive power; this power is in the hands of the president;

note - Beatriz MERINO was asked to resign on 12 December 2003 and was replaced by Carlos FERRERO Costa three days later

elections:

• president elected by popular vote for a five-year term;
• special presidential and congressional elections held 8 April 2001, with runoff election held 3 June 2001;
• next to be held 9 April 2006

election results:

President Alejandro TOLEDO Manrique elected president in runoff election; percent of vote - Alejandro TOLEDO Manrique 53.1%, Alan GARCIA 46.9%

cabinet:

Council of Ministers appointed by the president

Thanks to foreign investment and the cooperation between the government and the IMF and World Bank, growth was strong in 1994-97 and inflation was brought under control. In 1998, El Nino's impact on agriculture, the financial crisis in Asia, and instability in Brazilian markets undercut growth.

The following year was again lean year for Peru, with the aftermath of El Nino and the Asian financial crisis working its way through the economy. Political instability resulting from the presidential election and FUJIMORI's subsequent departure from office limited growth in 2000.

The downturn in the global economy further curtailed growth in 2001. President TOLEDO, who assumed the presidency in July 2001, has been working to reinvigorate the economy and reduce unemployment. Economic growth in 2002 is estimated at 4.8%, led by construction in the retail and gas sectors.