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Peru is the fifth most populous country in Latin America (after Brazil, Mexico, Colombia and Argentina). Twenty-one cities have a population of 100,000 or more. Rural migration has increased the urban population from 35.4% of the total population in 1940 to an estimated 74.6% as of 2005.  

Peru is the fifth most populous country in Latin America (after Brazil, Mexico, Colombia and Argentina). Twenty-one cities have a population of 100,000 or more. Rural migration has increased the urban population from 35.4% of the total population in 1940 to an estimated 74.6% as of 2005.  

Most Peruvians are either Spanish-speaking mestizos--a term that usually refers to a mixture of indigenous and European/Caucasian--or Amerindians, largely Quechua-speaking indigenous people. Peruvians of European descent make up about 15% of the population. There also are small numbers of persons of African, Japanese, and Chinese ancestry. 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 large-scale migration from rural to urban areas, a more homogeneous national culture is developing, mainly along the relatively more prosperous coast. 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.

Most Peruvians are either Spanish-speaking mestizos—a term that usually refers to a mixture of indigenous and European/Caucasian—or Amerindians, largely Quechua-speaking indigenous people. Peruvians of European descent make up about 15% of the population. There also are small numbers of persons of African, Japanese, and Chinese ancestry. 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 large-scale migration from rural to urban areas, a more homogeneous national culture is developing, mainly along the relatively more prosperous coast. 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.

==Government==

==Government==

===Principal Government Officials===

===Principal Government Officials===

*President--Ollanta Humala

*President—Ollanta Humala

*First Vice President--Luis Giampietri Rojas

*First Vice President—Luis Giampietri Rojas

*Second Vice President--Lourdes Mendoza del Solar  

*Second Vice President—Lourdes Mendoza del Solar  

*President of the Council of Ministers (Prime Minister)--Pedro Cateriano  

*President of the Council of Ministers (Prime Minister)--Pedro Cateriano  

*Foreign Affairs Minister--José Garcia Belaunde Antonio  

*Foreign Affairs Minister—José Garcia Belaunde Antonio  

*Finance and Economy Minister--Luis Carranza Ugarte  

*Finance and Economy Minister—Luis Carranza Ugarte  

*Defense Minister--Allan Wagner Tizón  

*Defense Minister—Allan Wagner Tizón  

*Ambassador to the United States--Felipe Ortiz de Zevallos  

*Ambassador to the United States—Felipe Ortiz de Zevallos  

*Permanent Representative to the United Nations--Oswaldo De Rivero

*Permanent Representative to the United Nations—Oswaldo De Rivero

*Ambassador to the Organization of American States--Antero Flores-Araoz

*Ambassador to the Organization of American States—Antero Flores-Araoz

===Foreign Relations===

===Foreign Relations===

===Foreign Trade===

===Foreign Trade===

Peru and the U.S. signed the U.S.-Peru Trade Promotion Agreement (PTPA) on April 12, 2006 in Washington, DC. The PTPA was ratified by the Peruvian Congress on June 28, 2006, but has not yet been ratified by the U.S. Congress. On December 9, 2006, the U.S. Congress extended the Andean Trade Preference Act (ATPA) as amended by the Andean Trade Promotion and Drug Eradication Act (ATPDEA)--jointly referred to as ATPA/ATPDEA--through June 2007. On June 30, 2007 the President signed legislation extending ATPA/ATPDEA for an additional 8 months.  

Peru and the U.S. signed the U.S.-Peru Trade Promotion Agreement (PTPA) on April 12, 2006 in Washington, DC. The PTPA was ratified by the Peruvian Congress on June 28, 2006, but has not yet been ratified by the U.S. Congress. On December 9, 2006, the U.S. Congress extended the Andean Trade Preference Act (ATPA) as amended by the Andean Trade Promotion and Drug Eradication Act (ATPDEA)--jointly referred to as ATPA/ATPDEA—through June 2007. On June 30, 2007 the President signed legislation extending ATPA/ATPDEA for an additional 8 months.  

Peru registered a trade surplus of $8.8 billion in 2006. Exports reached $23.7 billion, partially as a result of high mineral prices. Peru's major trading partners are the U.S., EU, Chile and Japan. In 2006, 23.0% of exports went to the U.S. ($5.9 billion) and 16.0% of imports came from the U.S. ($2.9 billion). Exports include gold, copper, fishmeal, petroleum, zinc, textiles, apparel, asparagus and coffee. Imports include machinery, vehicles, processed food, petroleum and steel. Peru belongs to the Andean Community, the Asia-Pacific Economic Cooperation (APEC) forum, and the World Trade Organization (WTO).  

Peru registered a trade surplus of $8.8 billion in 2006. Exports reached $23.7 billion, partially as a result of high mineral prices. Peru's major trading partners are the U.S., EU, Chile and Japan. In 2006, 23.0% of exports went to the U.S. ($5.9 billion) and 16.0% of imports came from the U.S. ($2.9 billion). Exports include gold, copper, fishmeal, petroleum, zinc, textiles, apparel, asparagus and coffee. Imports include machinery, vehicles, processed food, petroleum and steel. Peru belongs to the Andean Community, the Asia-Pacific Economic Cooperation (APEC) forum, and the World Trade Organization (WTO).  

When the Spanish landed in 1531, Peru's territory was the nucleus of the highly developed Inca civilization. Centered at Cuzco, the Incan Empire extended over a vast region from northern Ecuador to central Chile. In search of Inca wealth, the Spanish conqueror [[Francisco Pizarro]], who arrived in the territory after the Incas had fought a debilitating civil war, conquered the weakened people. The Spanish 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.  

When the Spanish landed in 1531, Peru's territory was the nucleus of the highly developed Inca civilization. Centered at Cuzco, the Incan Empire extended over a vast region from northern Ecuador to central Chile. In search of Inca wealth, the Spanish conqueror [[Francisco Pizarro]], who arrived in the territory after the Incas had fought a debilitating civil war, conquered the weakened people. The Spanish 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 the Spanish colonies in South America. By the time of the wars of independence (1820-24), Lima had become one of the most distinguished and aristocratic colonial capital and the chief Spanish stronghold in the Americas.

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

===Independence===

===Independence===

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 Venezuelan General Antonio Jose de Sucre defeated the Spanish troops at Ayacucho, ending Spanish rule in South America. Spain subsequently made futile attempts to regain its former colonies, but in 1879 it finally recognized Peru's independence.  

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 Venezuelan General Antonio Jose de Sucre defeated the Spanish troops at Ayacucho, ending Spanish rule in South America. Spain subsequently 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 in which Peru ceded the department of Tarapaca and the provinces of Tacna and Arica to Chile. In 1929, Chile returned Tacna to Peru. Following a clash between Peru and Ecuador in 1941, the Rio Protocol--of which the United States is one of four guarantors (along with Argentina, Brazil and Chile)--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 implemented the last outstanding article of their 1929 border agreement. Peru and Chile still dispute the sea boundary.  

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 in which Peru ceded the department of Tarapaca and the provinces of Tacna and Arica to Chile. In 1929, Chile returned Tacna to Peru. Following a clash between Peru and Ecuador in 1941, the Rio Protocol—of which the United States is one of four guarantors (along with Argentina, Brazil and Chile)--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 implemented the last outstanding article of their 1929 border agreement. Peru and Chile still dispute the sea boundary.  

===Military Rule and Return to Democracy (1968-1980)===  

===Military Rule and Return to Democracy (1968-1980)===  

[[File:ADRIAN AIRALDI Mujer de Jauja c. 1975.jpg|thumb|Mujer de Jauja by Adrian Airaldi, ca. 1975.]]

[[File:ADRIAN AIRALDI Mujer de Jauja c. 1975.jpg|thumb|Mujer de Jauja by Adrian Airaldi, ca. 1975.]]

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 Gen. 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 fishmeal industry, some petroleum and mining companies, and several banks.  

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 Gen. 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 fishmeal industry, some petroleum and mining companies, and several banks.  

Because of Velasco's economic mismanagement and deteriorating health, he was replaced in 1975 by Gen. Francisco Morales Bermudez. Morales Bermudez tempered the authoritarian abuses of the Velasco administration and began the task of restoring the country's economy. Morales Bermudez presided over the return to civilian government under a new constitution and in the May 1980 elections, President Belaunde Terry was returned to office by an impressive plurality.

Because of Velasco's economic mismanagement and deteriorating health, he was replaced in 1975 by Gen. Francisco Morales Bermudez. Morales Bermudez tempered the authoritarian abuses of the Velasco administration and began the task of restoring the country's economy. Morales Bermudez presided over the return to civilian government under a new constitution and in the May 1980 elections, President Belaunde Terry was returned to office by an impressive plurality.

===Instability in the 1980s (1982-1990)===  

===Instability in the 1980s (1982-1990)===  

Nagging economic problems left over from the military government persisted, worsened by an occurrence of the "El Niño" weather phenomenon in 1982-83, which caused widespread flooding in some parts of the country, severe droughts in others, and decimated the fishing industry. The fall in international commodity prices to their lowest levels since the Great Depression combined with the natural disasters to decrease production, depress wages, exacerbate unemployment, and spur inflation. The economic collapse was reflected in worsening living conditions for Peru's poor and provided a breeding ground for social and political discontent. The emergence of the terrorist group Sendero Luminoso (Shining Path) in rural areas in 1980--followed shortly thereafter by the Tupac Amaru Revolutionary Movement (MRTA) in Lima--sent the country further into chaos. The terrorists were financed in part from alliances with narcotraffickers, who had established a stronghold in the Peruvian Andes during this period. Peru and Bolivia became the largest coca producers in the world, accounting for roughly four-fifths of the production in South America.  

Nagging economic problems left over from the military government persisted, worsened by an occurrence of the "El Niño" weather phenomenon in 1982-83, which caused widespread flooding in some parts of the country, severe droughts in others, and decimated the fishing industry. The fall in international commodity prices to their lowest levels since the Great Depression combined with the natural disasters to decrease production, depress wages, exacerbate unemployment, and spur inflation. The economic collapse was reflected in worsening living conditions for Peru's poor and provided a breeding ground for social and political discontent. The emergence of the terrorist group Sendero Luminoso (Shining Path) in rural areas in 1980—followed shortly thereafter by the Tupac Amaru Revolutionary Movement (MRTA) in Lima—sent the country further into chaos. The terrorists were financed in part from alliances with narcotraffickers, who had established a stronghold in the Peruvian Andes during this period. Peru and Bolivia became the largest coca producers in the world, accounting for roughly four-fifths of the production in South America.  

Amid inflation, economic hardship, and terrorism, the American Popular Revolutionary Alliance (APRA) won the presidential election in 1985, bringing Alan García Pérez to office. The transfer of the presidency from Belaunde to García on July 28, 1985, was Peru's first transfer of power from one [[democratically elected]] leader to another in 40 years.  

Amid inflation, economic hardship, and terrorism, the American Popular Revolutionary Alliance (APRA) won the presidential election in 1985, bringing Alan García Pérez to office. The transfer of the presidency from Belaunde to García on July 28, 1985, was Peru's first transfer of power from one [[democratically elected]] leader to another in 40 years.  

===2006 Elections and Transition to the Garcia Administration===  

===2006 Elections and Transition to the Garcia Administration===  

On June 4, 2006, APRA candidate Alan García Pérez was elected to the presidency by 52.5% of the voters in his runoff with Ollanta Humala, who ran under the Union for Peru, with the support of his Peruvian Nationalist Party. With 36 seats, APRA has the second largest bloc--next to the Union for Peru Party's 45 seats--in the 120-seat unicameral Congress which was sworn in July 2006. After a disappointing presidential term from 1985 to 1990, García returned to the presidency with promises to improve Peru's social condition, balancing economic stability with increased social spending. His stated primary goal is to decrease poverty through job creation, especially in Peru's southern highlands where poverty is most acute. He has sought to improve relations with Peru's South American neighbors and with the United States, and to present Peru's democratic and pro-free trade path as a model for the region.  

On June 4, 2006, APRA candidate Alan García Pérez was elected to the presidency by 52.5% of the voters in his runoff with Ollanta Humala, who ran under the Union for Peru, with the support of his Peruvian Nationalist Party. With 36 seats, APRA has the second largest bloc—next to the Union for Peru Party's 45 seats—in the 120-seat unicameral Congress which was sworn in July 2006. After a disappointing presidential term from 1985 to 1990, García returned to the presidency with promises to improve Peru's social condition, balancing economic stability with increased social spending. His stated primary goal is to decrease poverty through job creation, especially in Peru's southern highlands where poverty is most acute. He has sought to improve relations with Peru's South American neighbors and with the United States, and to present Peru's democratic and pro-free trade path as a model for the region.