Colext/Macondo
Cantina virtual de los COLombianos en el EXTerior
--------------------------------------------------

India / Pakistan / Bangladesh / Per�

Me acaba de llegar la actualizacion de Peru. Si no esta
coleccionando las actualizaciones, este es el momento de borrar!

PANG2001

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March 2000 Official Name: Republic of Peru

PROFILE

Geography

Area: 1.28 million sq. km. (496,225 sq. mi.); three times
larger than California
Cities: Capital--Lima/Callao metropolitan area (pop. 7.35
million, 1999). Other cities--Arequipa, Chiclayo, Cuzco,
Huancayo, Trujillo, Ayacucho, Piura, Iquitos, Chimbote.
Terrain: Western coastal plains, central rugged mountains
(Andes), eastern lowlands with tropical forests.
Climate: Coastal area, arid and mild; Andes, temperate to
frigid; eastern lowlands, tropically warm and humid.

People

Nationality: Noun and adjective--Peruvian(s).
Population (1999 est.): 25.2 million (71.9% urban).
Annual growth rate (1999 est.): 1.7%.
Ethnic groups: Indian 45%. Mestizo 37%. White 15%. Black,
Japanese, Chinese, and other 3%.
Religion: Roman Catholic (89%).
Languages: Spanish (official), Quechua (official), Aymara
and a large number of minor Amazonian languages.
Education: Years compulsory--11. Literacy--About 92%.
Health: Infant mortality rate (1998 est.)--44/1,000. Life
expectancy (1997)--67 male; 71 female.
Work force: (1999) 10.1 million. Manufacturing--11%;
commerce--16%; agriculture--26%; mining--1%;
construction--3.6%; government--5%; other services--33%.

Government

Type: Constitutional republic.
Independence: 1821.
Constitution: December 1993.
Branches: Executive--president, two vice presidents, Council
of Ministers. Legislative--unicameral Congress.
Judicial--Supreme Court and lower courts, Tribunal of
Constitutional Guarantees.
Administrative subdivisions: 12 regions, 24 departments, 1
constitutional province.
Political parties and movements: Change 90/New Majority,
Union For Peru (UPF), American Popular Revolutionary
Alliance (APRA), Independent Moralizer Front (FIM), Popular
Christian Party (PPC), Popular Action (AP).
Suffrage: Universal over 18; compulsory until age 70
(members of the military may not vote).

Economy (1999)

GDP (est.): $59.3 billion.
Annual growth rate: 3.0%.
Per capita GDP: $2,350.
Inflation rate: 5%.
Natural resources: Minerals, metals, petroleum, forests, and
fish.
Agriculture (12% of GDP): Products--sugar, potatoes, rice,
yellow corn, cotton, coffee, poultry, beef, milk.
Manufacturing (21% of GDP): Products--fish meal, nonferrous
metals, steel, textiles, chemicals, wood, nonmetallic
minerals, cement, paper.
Trade: Exports--$6.2 billion: gold, copper, zinc, lead,
coffee, petroleum products. Major markets--U.S. (29%), U.K.
(10%), Switzerland (9%), Japan (4%) Germany (4%).
Imports--$7.4 billion: machinery and parts, cereals,
chemicals, pharmaceuticals, crude oil and petroleum
products, mining equipment, household appliances and
automobiles.
Major suppliers--U.S. (28%), Andean Pact countries (14%),
Argentina (4%), EU (16%), and Japan (6%).



PEOPLE

Most Peruvians are "mestizo," a term that usually refers to
a mixture of Amerindians and Peruvians of European descent.
Peruvians of European descent make up about 15% of the
population; there also are smaller numbers of persons of
African, Japanese, and Chinese descent. In the past decade,
Peruvians of Asian heritage have made significant
advancements in business and political fields; the
president, a cabinet member, and several members of the
Peruvian congress are of Japanese or Chinese descent.
Socioeconomic and cultural indicators are increasingly
important as identifiers. For example, Peruvians of
Amerindian descent who have adopted aspects of Hispanic
culture also are considered "mestizo." With economic
development, access to education, intermarriage, and
largescale migration from rural to urban areas, a more
homogeneous national culture is developing, mainly along the
relatively more prosperous coast.

Peru has two official languages--Spanish and the foremost
indigenous language, Quechua. Spanish is used by the
government and the media and in education and commerce.
Amerindians who live in the Andean highlands speak Quechua
and Aymara and are ethnically distinct from the diverse
indigenous groups who live on the eastern side of the Andes
and in the tropical lowlands adjacent to the Amazon basin.

Peru's distinct geographical regions are mirrored in a
socioeconomic divide between the coast's mestizo-Hispanic
culture and the more diverse, traditional Andean cultures of
the mountains and highlands. The indigenous populations east
of the Andes speak various languages and dialects. Some of
these groups still adhere to traditional customs, while
others have been almost completely assimilated into the
mestizo-Hispanic culture.


Education

Under the 1993 constitution, primary education is free and
compulsory. The system is highly centralized, with the
Ministry of Education appointing all public school teachers.
Eighty-four percent of Peru's students attend public schools
at all levels.

School enrollment has been rising sharply for years, due to
a widening educational effort by the government and a
growing school-age population. The illiteracy rate is 8 %
(16.9 % for women) in rural areas and is estimated at 3.5 %
in urban areas. Elementary and secondary school enrollment
is approximately 6.l million. Peru's 65 universities (1997),
roughly divided between public and private institutions,
enrolled about 380,000 students in 1996.

Culture

The relationship between Hispanic and Indian cultures has
shaped the face of Peru. During pre-Columbian times, Peru
was one of the major centers of artistic expression in
America, where pre-Inca cultures, such as Chavin, Paracas,
Wari, Nazca, Chimu, and Tiahuanaco developed high-quality
pottery, textiles, jewelry, and sculpture. Drawing upon
earlier cultures, the Incas continued to maintain these
crafts but made even more impressive achievements in
architecture. The mountain town of Machu Picchu and the
buildings at Cuzco are excellent examples of Inca
architectural design.

Peru has passed through various intellectual stages--from
colonial Hispanic culture to European Romanticism after
independence. The early 20th century brought "indigenismo,"
expressed in a new awareness of Indian culture. Since World
War II, Peruvian writers, artists, and intellectuals have
participated in worldwide intellectual and artistic
movements, drawing especially on U.S. and European trends.

During the colonial period, Spanish baroque fused with the
rich Inca tradition to produce mestizo or creole art. The
Cusco school of largely anonymous Indian artists followed
the Spanish baroque tradition with influence from the
Italian, Flemish, and French schools. Painter Francisco
Fierro made a distinctive contribution to this school with
his portrayals of typical events, manners, and customs of
mid-19th-century Peru. Francisco Lazo, forerunner of the
indigenous school of painters, also achieved fame for his
portraits. Peru's 20th-century art is known for its
extraordinary variety of styles and stunning originality.

In the decade after 1932, the "indigenous school" of
painting headed by Jose Sabogal dominated the cultural scene
in Peru. A subsequent reaction among Peruvian artists led to
the beginning of modern Peruvian painting. Sabogal's
resignation as director of the National School of Arts in
1943 coincided with the return of several Peruvian painters
from Europe who revitalized "universal" and international
styles of painting in Peru. During the 1960s, Fernando de
Szyszlo, an internationally recognized Peruvian artist,
became the main advocate for abstract painting and pushed
Peruvian art toward modernism. Peru remains an art-producing
center with painters such as Gerardo Chavez, Alberto
Quintanilla, and Jose Carlos Ramos, along with sculptor
Victor Delfin, gaining international stature. Promising
young artists continue to develop now that Peru's economy
allows more promotion of the arts.


HISTORY

When the Spanish landed in 1531, Peru's territory was the
nucleus of the highly developed Inca civilization. Centered
at Cuzco, the Inca Empire extended over a vast region from
northern Ecuador to central Chile. In search of Inca wealth,
the Spanish explorer Francisco Pizarro, who arrived in the
territory after the Incas had fought a debilitating civil
war, conquered the weakened people. The Spanish had captured
the Incan capital at Cuzco by 1533 and consolidated their
control by 1542. Gold and silver from the Andes enriched the
conquerors, and Peru became the principal source of Spanish
wealth and power in South America.

Pizarro founded Lima in 1535. The viceroyalty established at
Lima in 1542 initially had jurisdiction over all of South
America except Portuguese Brazil. By the time of the wars of
independence (1820-24), Lima had become the most
distinguished and aristocratic colonial capital and the
chief Spanish stronghold in America.

Peru's independence movement was led by Jose de San Martin
of Argentina and Simon Bolivar of Venezuela. San Martin
proclaimed Peruvian independence from Spain on July 28,
1821. Emancipation was completed in December 1824, when
General Antonio Jose de Sucre defeated the Spanish troops
at Ayacucho, ending Spanish rule in South America. Spain
made futile attempts to regain its former colonies, but in
1879 it finally recognized Peru's independence.

After independence, Peru and its neighbors engaged in
intermittent territorial disputes. Chile's victory over Peru
and Bolivia in the War of the Pacific (1879-83) resulted in
a territorial settlement. Following a clash between Peru
and Ecuador in 1941, the Rio Protocol--of which the United
States is one of four guarantors--sought to establish the
boundary between the two countries. Continuing boundary
disagreement led to brief armed conflicts in early 1981 and
early 1995, but in 1998 the governments of Peru and Ecuador
signed an historic peace treaty and demarcated the border.
In late 1999, the governments of Peru and Chile likewise
finally implemented the last outstanding article of their
1929 border agreement.

The military has been prominent in Peruvian history. Coups
have repeatedly interrupted civilian constitutional
government. The most recent period of military rule
(1968-80) began when General Juan Velasco Alvarado overthrew
elected President Fernando Belaunde Terry of the Popular
Action Party (AP). As part of what has been called the
"first phase" of the military government's nationalist
program, Velasco undertook an extensive agrarian reform
program and nationalized the fish meal industry, some
petroleum companies, and several banks and mining firms.

Because of Velasco's economic mismanagement and
deteriorating health, he was replaced by General Francisco
Morales Bermudez Cerruti in 1975. Morales Bermudez moved
the revolution into a more pragmatic "second phase,"
tempering the authoritarian abuses of the first phase and
beginning the task of restoring the country's economy.
Morales Bermudez presided over the return to civilian
government in accordance with a new constitution drawn up
in 1979. In the May 1980 elections, President Belaunde Terry
was returned to office by an impressive plurality.

Nagging economic problems left over from the military
government persisted, worsened by an occurrence of the "El
Ni�o" weather phenomenon in 1982-83, which caused widespread
flooding in some parts of the country, severe droughts in
others, and decimated the schools of ocean fish that are
one of the country's major resources. After a promising
beginning, Belaunde's popularity eroded under the stress of
inflation, economic hardship, and terrorism.

During the 1980s, cultivation of illicit coca was
established in large areas on the eastern Andean slope.
Rural terrorism by Sendero Luminoso (SL) and the Tupac
Amaru Revolutionary Movement (MRTA) increased during this
time and derived significant financial support from their
alliances with the narcotraffickers. In 1985, the American
Popular Revolutionary Alliance (APRA) won the presidential
election, bringing Alan Garcia Perez to office. The transfer
of the presidency from Belaunde to Garcia on July 28, 1985,
was Peru's first exchange of power from one democratically
elected leader to another in 40 years.

Extreme economic mismanagement by the Garcia administration
led to hyperinflation from 1988 to 1990. Concerned about the
economy, the increasing terrorist threat from Sendero
Luminoso, and allegations of official corruption, voters
chose a relatively unknown mathematician-turned-politician,
Alberto Fujimori, as president in 1990.


GOVERNMENT

The president is popularly elected for a 5-year term, and
the 1993 constitution permits one consecutive re-election.
The first and second vice presidents also are popularly
elected but have no constitutional functions unless the
president is unable to discharge his duties. The principal
executive body is the Council of Ministers, headed by a
prime minister, all appointed by the president. All
presidential decree laws or draft bills sent to Congress
must be approved by the Council of Ministers.

The legislative branch consists of a unicameral Congress of
120 members. In addition to passing laws, Congress ratifies
treaties, authorizes government loans, and approves the
government budget. The president has the power to block
legislation with which the executive branch does not agree.

The judicial branch of government is headed by a 16-member
Supreme Court seated in Lima. The Constitutional Tribunal
interprets the constitution on matters of individual rights.
It has not functioned fully since 1996, when congress
removed three of its seven members for opposing a law that
permitted President Fujimori to run for a third consecutive
term. Superior courts in departmental capitals review
appeals from decisions by lower courts. Courts of first
instance are located in provincial capitals and are divided
into civil, penal, and special chambers. The judiciary has
created several temporary specialized courts, in an attempt
to reduce the large backlog of cases pending final court
action. In 1996 a Human Rights Ombudsman's office was
created to address human rights issues.

Peru is divided into 24 departments and the constitutional
province of Callao, the country's chief port, adjacent to
Lima. The departments are subdivided into provinces, which
are composed of districts. Authorities below the
departmental level are elected.


Principal Government Officials

President--Alberto FUJIMORI Fujimori
First Vice President--Ricardo MARQUEZ Flores
Second Vice President--Cesar PAREDES Canto

Ministers

President of the Council of Ministers (Prime Minister)--
Alberto BUSTAMANTE Belaunde
Foreign Relations Minister--Fernando DE TRAZEGNIES Granda
Defense--Carlos BERGAMINO Cruz
Economy and Finance--Efrain GOLDENBERG Shreiber
Interior-- Cesar SAUCEDO Sanchez
Justice--Alberto BUSTAMANTE Belaunde
Education--Felipe Ignacio GARCIA Escudero
Health--Alejandro AGUINAGA Recuenco
Agriculture and Food--Belisario DE LAS CASAS Piedra
Labor--Pedro FLORES Polo
Industry, Commerce, Tourism, and Integration--Juan Carlos HURTADO Miller
Transportation and Communications--Alberto PANDOLFI Arbulu
Energy and Mines--Jorge CHAMOT Sarmiento
Fisheries Minister and Privatization Commission--Cesar LUNA-VICTORIA Leon
Minister for the Promotion of Women and Human Development--Luisa Maria
CUCULIZA Torres
Minister of the Presidency--Edgardo MOSQUEIRA
Ambassador to the United States--Alfonso RIVERO Monsalve
Permanent Representative to the United Nations--Francisco TUDELA Van Douglas
Ambassador to the Organization of American States--Dra. Beatriz RAMACCIOTTI

Peru maintains an embassy in the United States at 1700
Massachusetts Avenue, NW, Washington, DC 20036 (tel.
202-833-9860/67, consular section: 202-462-1084). Peru has
consulates in New York; Paterson, NJ; Miami; Chicago;
Houston; Los Angeles; San Francisco; and San Juan, Puerto
Rico.


POLITICAL CONDITIONS

Peru is a republic with a dominant executive branch headed
by President Alberto Fujimori. President Fujimori won
re-election to a second 5-year term in 1995, and his "Change
90/New Majority" supporters enjoy a substantial majority in
congress. In 1996, the congress passed legislation
interpreting the constitutional term limits for president,
making it possible for President Fujimori to seek
re-election in 2000.

In April 1992, 2 years after his election, President
Fujimori carried out an "auto-coup," dissolving congress and
regional governments and assuming control over the
judiciary. There was broad popular support for the coup,
which reflected deep public frustration with politicians'
inefficiency and corruption. The President subsequently
convened elections for a constituent congress on November
1992, and won public approval of the new constitution in an
October 1993 referendum.

The Fujimori government has substantially reduced the
terrorist threat of Shining Path (SL) and the MRTA. The
capture or death of several remaining terrorist leaders
marked continuing progress in eliminating the once great
threat posed by the SL and MRTA terrorist organizations, who
since 1990 committed the great majority of killings and
egregious human rights abuses. Armed militants of the MRTA
carried out an attack on a diplomatic reception at the
residence of the Japanese Ambassador to Peru in December
1996. More than 500 guests were initially held captive by
the MRTA, which demanded the release of all MRTA members
being held in Peruvian prisons. On April 22, 1997, after
126 days, Peruvian commandos stormed the residence and freed
71 of the remaining 72 hostages. One hostage, two commandos
and all of the hostage-takers were killed.

Human rights violations by the security forces dropped
considerably over the last several years, although there
have been numerous accusations of human rights infractions.
Reports of torture, and the lack of accountability and due
process remain areas of concern. In 1995, the Peruvian
congress passed a law which granted amnesty from prosecution
to those who committed human rights abuses during the war on
terrorism from May 1980 to June 1995. The Peruvian
Government established in 1996 the Human Rights Ombudsman's
office to address human rights issues and an ad hoc
commission to review and recommend for presidential pardon
those unjustly detained for terrorism or treason. About 500
people have been pardoned and released under this
arrangement. Serious concerns over rule of law remain,
particularly in regard to the independence of the judiciary,
freedom of the press, and Peru's 1999 withdrawal from the
jurisdiction of the Inter-American Court of Human Rights.


ECONOMY

>From 1994 through 1997, the economy recorded robust growth
driven by foreign direct investment, almost 40% of which was
related to the privatization program. In 1998, real GDP
grew by only 0.3%, largely as a result of the "El Ni�o"
weather phenomenon, which led to sharp declines in fish
exports, disrupted agriculture and damaged infrastructure.
Worsening terms of trade also contributed to the poor
economic performance, as prices dropped for minerals,
fishmeal and coffee--Peru's main exports. Financial turmoil
in Asia, Russia, and Brazil added to the problem, leading to
a sharp decline in privatization-related foreign direct
investment and dramatic outflows of short-term capital. The
Lima Stock Exchange general index fell 35% (in dollar terms)
in 1998, less than other exchanges in the region. Following
a recovery during 1999, the index is expected to end the
year with as much as a 20% gain in dollar terms. Inflation
reached 7.3% in 1998, another record low. The government's
overall budget deficit was 0.7% of GDP, the result of lower
imports, exports and private investment. Peru's
macroeconomic stability has brought about a reduction of
almost one half of the high underemployment of 74% from the
late 1980s through 1994 to 43% in the 1995-98 period. The
poverty rate has dropped from 55.3% in 1991 to 37.6% in
1997.

Foreign Trade and Balance of Payments

The current account deficit is expected to drop in 1999 to
about 2.5% of GDP ($1.5 billion), from 6.0% in 1998, while
the merchandise trade deficit is expected to shrink to less
than one-tenth of the $2.5 billion of 1998 (3.9% of GDP).
Exports are expected to increase by about 7.3% to about
$6.2 billion, while imports are expected to fall by almost
23% to $ 6.3 billion. After being hit hard by El Ni�o in
1998, fisheries exports will likely grow by over 70%.
Minerals and metals exports should record an increase of
about 15%. Imports are estimated to fall by over 20% in all
categories. A decrease in capital goods imports is largely
the result of lower foreign direct investment, while the
drop in imports of consumer goods and raw materials reflects
the frail domestic industry. For the third year in a row,
foreign direct investment not related to privatization ($2
billion) will be the main item financing the current
account deficit. Long-term loans also will help with almost
$0.5 billion. On the negative side, short-term capital and
portfolio investment are expected to register a combined
outflow of just over $1 billion, after an outflow of $371
million in 1998 when the Russian crisis began. Net
international reserves at the end of November 1999 stood at
$8.85 billion, down from $9.18 billion at the end of 1998.

Foreign Investment

The Peruvian Government actively seeks to attract both
foreign and domestic investment in all sectors of the
economy. International investment has been spurred by the
significant progress Peru has made over the last 9 years
toward economic, social, and political stability. While
Peru was previously marked by terrorism, hyperinflation, and
government intervention in the economy, the Government of
Peru under President Alberto Fujimori has taken the steps
necessary to bring those problems under control. However,
democratic institutions, especially the judiciary, remain
weak.

The Government of Peru's economic stabilization and
liberalization program has lowered trade barriers,
eliminated restrictions on capital flows, and opened the
economy to foreign investment, with the result that Peru now
has one of the most open investment regimes in the world.
Between 1990 and 1999, Peru attracted more than $15 billion
in foreign direct investment in Peru, after negligible
investment during the 1980s, mainly from Spain, the United
States, the United Kingdom, and Panama, and Netherlands.
The basic legal structure for foreign investment in Peru is
formed by the 1993 constitution, the Private Investment
Growth Law, and the November 1996 Investment Promotion Law.
Although Peru has neither a bilateral investment treaty nor
a bilateral taxation treaty with the United States, it has
signed an agreement (1993) with the Overseas Private
Investment Corporation concerning OPIC-financed loans,
guarantees, and investments. Peru has also committed itself
to arbitration of government-to-government investment
disputes under the auspices of ICSID--the World Bank's
International Centre for the Settlement of Investment
Disputes.

Economic Outlook

Real GDP is expected to grow an estimated 2.5%-3% in 1999 as
recovery from "El Ni�o" and global financial turmoil
continues, and should pick up in the second half of 2000.
Inflation will likely continue to fall, while the budget
deficit is expected to grow to 2.5% of GDP as the result of
a sharp drop in revenues. Private investment, estimated to
drop by over 20% in 1999 as a result of a slowdown in the
privatization and concession programs, is likely to increase
after the April 2000 elections. The jobless and disguised
unemployment indexes (7.7% and 44.1%, respectively, in the
third quarter of 1998) are expected to rise in 1999.
Forecasts for the medium- and long-term remain bright, as
the country continues to attract both domestic and foreign
investment in the tourism, mining, petroleum and natural
gas, and electric power industries.

Narcotics

The fight against narcotics trafficking in Peru has resulted
in an unprecedented 66% decline in 4 years ending in 1999 in
the number of acres of illegal coca leaf under cultivation.
The impact of this illicit industry to the national economy
is difficult to measure, but estimates range from $300-600
million. An estimated 200,000 Peruvians are engaged in the
production, refining, or distribution of the narcotic. Many
economists believe that large flows of dollars into the
banking system contribute to the traditional depression in
the dollar exchange rate vis-a-vis the sol. The Central
Bank engages in open market activities to prevent the price
of the sol from rising to levels that would otherwise hurt
Peruvian exports.

Confronted by the Peruvian Air Force interdiction efforts,
drug traffickers are now using land and river routes to
transport cocaine paste and, increasingly, cocaine
hydrochloride (HCL) around and out of the country. Peru
continues to seize drug traffickers and drugs, destroy coca
labs, disable clandestine airstrips, and prosecute officials
involved in narcotics corruption.

Working with the U.S. Agency for International Development
(USAID), the Peruvian Government has begun alternative
development programs in the leading coca-growing areas in an
effort to convince coca farmers not to grow that crop.
Although the government previously eradicated only coca seed
beds, in 1998 and 1999 it began to eradicate mature cocoa
being grown in national parks and elsewhere in the main
cocoa growing valleys. In 1999 the government eradicated
over 15,000 hectares of cocoa, double Peru's previous record
of 7,800 hectares in 1998. The government also is working
to eliminate precursor chemicals. In 1996 the Fujimori
Administration created a new office--"Contradrogas"--to
facilitate coordination among Peruvian Government agencies
working on counternarcotics issues.


FOREIGN RELATIONS

In the last 2 years, Peru has settled border disputes with
its neighbors. In October 1998, Peru and Ecuador signed a
Peace Accord which definitively resolved border differences
which had, over the years, resulted in armed conflict. Peru
and Ecuador are now jointly coordinating an internationally
sponsored border integration project. The United States
Government, as one of four guarantor states, was actively
involved in facilitating the 1998 Peace Accord between Peru
and Ecuador and remains committed to its implementation.
The United States has pledged $40 million to the
Peru-Ecuador border integration project and another $4
million to support Peruvian and Ecuadorian demining efforts
along their common border.

In November 1999, Peru and Chile signed three agreements
which put to rest the remaining obstacles holding up
implementation of the 1929 Border Treaty. (The 1929 Border
Treaty officially ended the 1879 War of the Pacific.) In
December, President Fujimori made the first visit ever to
Chile by a Peruvian head of state.

Peru has been a member of the United Nations since 1949, and
Peruvian Javier Perez de Cuellar served as UN Secretary
General from 1981 to 1991. The April 1992 auto-coup
strained Peru's relations with many Latin American and
European countries, but relations improved as the government
returned to democratic processes. Peru recently reached
agreement with the other members of the Andean community on
full integration into the Andean Free Trade Area. In
addition, Peru is a standing member of APEC, FTAA and the
WTO.

U.S.-PERUVIAN RELATIONS

The United States enjoys friendly relations with Peru.
Relations were strained after the 1992 auto-coup, but
improved as Peru undertook steps to restore democratic
institutions and to address human rights problems related to
its counter-terrorism efforts. The United States continues
to promote the strengthening of democratic institutions and
human rights safeguards in Peru.

The United States and Peru cooperate on efforts to interdict
the flow of narcotics, particularly cocaine, to the United
States. The Peruvian Air Force has successfully interdicted
narcotics trafficking via air to surrounding countries.
Bilateral programs are now in effect to reduce the flow of
drugs on Peru's extensive river system and to perform ground
interdiction in tandem with successful law enforcement
operations. The United States and Peru cooperate on
promoting programs of alternative development in
coca-growing regions.

The United States has supported Peru's efforts to become
more integrated with the international financial community.
Those efforts, together with increased economic and social
stability, have resulted in a substantial increase in U.S.
investment and tourism in Peru in recent years. U.S.
exports to Peru (1998) were valued at $2.0 billion,
accounting for about 24% of Peru's imports. In the same
year, Peru exported $1.8 billion in goods to the United
States, accounting for about 32% of Peru's exports to the
world.

About 200,000 U.S. citizens visit Peru annually for
business, tourism , and study. About 10,000 Americans
reside in Peru, and more than 200 U.S. companies are
represented in the country.

U.S. Economic Assistance

U.S. bilateral assistance to Peru, including food aid and
disaster relief and rehabilitation, totaled more than $1.2
billion during the 1990-99 period. The United States Agency
for International Development's (USAID) program in Peru is
its second-largest in Latin America.

U.S. assistance to Peru is focused on six strategic
objectives: broader citizen participation in democratic
processes; increased incomes of the poor; improved health of
high-risk populations, including family planning; improved
environmental management; reduced illicit coca production
in target areas of Peru; and expanded educational
opportunities for women. Additionally, a new initiative is
being developed to support the consolidation of the peace
agreement signed between Peru and Ecuador. The initiative
would contribute to improved living conditions of the
population in the border region and thus show tangible
benefits of the peace accords.

Democracy. U.S. assistance seeks to strengthen democratic
institutions; promote more effective local governments;
promote and protect human rights; foster citizen
participation; and strengthen women's participation in
decisionmaking processes. USAID has been the first donor to
provide assistance to the human rights Ombudsman,
contributing to the release of 2,283 innocent persons
unjustly accused of terrorism since 1995--1,849 through the
efforts of USAID-supported NGOs, and 469 by the Pardon
Commission, of which the Ombudsman is a key member.

Reducing poverty. USAID aims to improve the policy
environment for private sector-led growth; expand access to
markets; improve production; improve access to and
distribution of food resources; and improve access to
public utilities in poverty areas. U.S. food assistance
programs reach approximately 1.7 million poor Peruvians
annually in rural highlands and jungle areas, where the
majority of the extreme poverty is found.

Health. U.S. assistance is improving child survival and
maternal health services (such as immunization, diarrheal
control, and prenatal care) and strengthening and expanding
the participation of public and private sector entities in
HIV/AIDS prevention. In family planning, activities with
the NGO sector include efforts to strengthen the capacity of
NGOs to supply family planning methods in urban and rural
areas; increase the sustainability of the supply of
contraceptives; and disseminate information on family
planing methods and services. USAID's support to the
Ministry of Health has made substantial improvements in this
area. Infant mortality rate fell from 57 per 1,000 births
in 1991 to 42 in 1997 while immunization campaigns for
children younger than 1 reached 97.5% coverage.

Environment. USAID's strategy focuses on improving the
legal, policy, regulatory, and normative environment and
natural resource framework; promoting pollution prevention
in selected peri-urban and industrial settings; and
protecting natural resources, including biological diversity
and fragile ecosystems. USAID has provided important
assistance to the Peruvian Government to improve the legal,
regulatory, and policy framework that established clearer
rules on environmentally sustainable natural resource use.
Among these were the National Environmental Council's
Structural Framework for Environmental Management, the
Ministry of Industry's Environmental Regulation, the
Framework Law for Sustainable Use of Natural Resources, and
the Pollution Prevention Oriented Environmental Framework
Legislation for the Fisheries and related industries.

Alternative development. USAID seeks to reduce coca leaf
cultivation through alternative development and
environmental protection programs, as well as to reduce drug
use and addition through prevention, awareness and
rehabilitation programs. It also seeks to increase the
commitment of farmers and communities to reduce illicit coca
production voluntarily. USAID, together with Peruvian and
U.S. law enforcement actions, has contributed to a 56%
reduction of hectares devoted to coca cultivation (from
115,300 Ha in 1995 to 51,000 Ha) in 1998. As a result,
over the same period coca leaf production also decreased by
52%, from a baseline of 183,600 metric tons to 95,600. In
1998, the total gross agricultural production value of the
alternative crops in targeted areas outweighed the total
gross production value of coca leaf by 39%. As a result,
over 2,600 new jobs were created and more than 20,000
farmers were assisted in production, quality improvement,
processing and marketing for licit crops such as coffee,
cacao, livestock, and agroforestry, on nearly 25,000
hectares.

This strategic objective is aimed at assisting the
Government of Peru and civil society organizations to
develop initiatives that address critical constraints to
basic education of girls in rural areas in Peru. As a
result, USAID has contributed to the establishment of a
National Network for Girls' Education in Peru, with the
participation of GOP sectoral ministries, NGOs,
universities, the business community, and donors. This
national network has been very active in increasing
consciousness about the importance of girls' education in
Peru.


Principal U.S. Embassy Officials

Ambassador--John R. Hamilton
Deputy Chief of Mission--Heather M. Hodges
Director, USAID Mission--Tom Geiger
Counselor for Political Affairs--Arnold A. Chacon
Counselor for Economic Affairs--Krishna R. Urs
Counselor for Narcotics Affairs (NAS)--Candis Cunningham
Counselor for Public Affairs--Douglas M. Barnes
Counselor for Administrative Affairs--James Willard
Counselor for Consular Affairs--Annette L. Veler
Commercial Attache--Andrew Wylegala
Naval and Defense Attache--Capt. William Espinosa
Army Attache--Col. Samuel K. Stouffer
Air Attache--Col. Michael F. McCarthy
Chief, Military Assistance Advisory Group (MAAG)--Col. Gil Perez
Consular Agent, Cuzco--Dr. Olga Villagarcia


The U.S. embassy in Peru is located at Avendia la Encalada,
Cuadra 17 s/n, Monterrico (Surco), Lima 33 (tel. (511)
434-3000; fax. (511) 434-3037). Home page:
http://ekeko.rcp.net.pe/usa/

The embassy is open from 8:00 a.m. to 5:00 p.m.,
Monday-Friday, except U.S. and some Peruvian holidays. The
mailing address from the United States is American Embassy
Lima, APO AA 34031 (use U.S. domestic postage rates). The
American Citizen Services section is open to the public from
8:00 a.m. to 12:00 p.m.

The Consular Agency in Cuzco is located at Anda Tullamayu
125 (tel. (51) (84) 224112 or (51) (84) 239451; fax. (51)
(84) 233541).


Other Contact Information

U.S. Department of State
Bureau of Western Hemisphere Affairs
Office of Andean Affairs (Room 5906)
2201 C Street N.W.
Washington, D.C. 20520-6263
Tel: 202-647-3360
Fax: 202-647-2628
Home Page: http://www.state.gov

U.S. Department of Commerce
International Trade Administration
Office of Latin America and the Caribbean
14th and Constitution, NW
Washington, DC 20230
Tel: (202) 482-0475
(800) USA-TRADE
Fax: (202) 482-0464
Home Page: http://www.ita.doc.gov

American Chamber of Commerce of Peru
Avenida Ricardo Palma 836, Miraflores
Lima 18, Peru
Tel: (511) 241-0708
Fax: (511) 241-0709
E-Mail: [EMAIL PROTECTED]
Home Page: http://www.amcham.org.pe







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