Peru: Current Conditions and U.S. Relations
Abstract
Peru shows promising signs of economic and political stability and the inclination to work with the United States on mutual concerns. President Alan Garcia is, however, facing challenging times during this, the third year of his 5-year term. Widespread social unrest has increased as growing inflation combines with unmet expectations that social conditions for Peru's poorest citizens would improve with Peru's economic growth. Peru's economy has been stronger than virtually all other Latin American economies since 2001. Peru's poverty rates have been dropping since 2000, but still remain high considering Peru's income levels. Economic power is, and has been traditionally, concentrated in the hands of a small economic elite of European descent. The subsistence sector, on the other hand, is concentrated in the mountainous interior, and among the mostly indigenous population there. Indeed, the percentage of the population living in poverty in cities in 2007 was about 26%, while the percentage living in poverty in rural areas was about 65%. On June 5, 2009, unrest exploded into a deadly conflict when the government sent police to break up blockades set up by thousands of indigenous protesters in the Amazon. The deadly clash between the indigenous protesters and police, and the reaction to it, is indicative of the polarization both within Peru and within the Andean region. The protest stemmed from disputes over who has the right to exploit natural resources in the Amazon and elsewhere in the country. The fallout from the protests has also heightened regional tensions over how to reduce poverty. Peru and the United States have a strong and cooperative relationship. A U.S.-Peru Trade Promotion Agreement (PTPA) went into effect on February 1, 2009. The two countries also cooperate on counternarcotics efforts, maritime concerns, combating human trafficking, and improving disaster preparedness.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jul 21, 2009
- Accession Number
- ADA503283
Entities
People
- Maureen Taft-morales
Organizations
- Library of Congress