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  U.S. Department of State, March 2000
Bureau of Western Hemisphere Affairs

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Background Notes:
Peru

 
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://1997-2001.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: amcham@amcham.tci.net.pe
Home Page: http://www.amcham.org.pe

TRAVEL AND BUSINESS INFORMATION

The U.S. Department of State's Consular Information Program provides Consular Information Sheets, Travel Warnings, and Public Announcements. Consular Information Sheets exist for all countries and include information on entry requirements, currency regulations, health conditions, areas of instability, crime and security, political disturbances, and the addresses of the U.S. posts in the country. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country. Public Announcements are issued as a means to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas which pose significant risks to the security of American travelers. Free copies of this information are available by calling the Bureau of Consular Affairs at 202-647-5225 or via the fax-on-demand system: 202-647-3000. Consular Information Sheets and Travel Warnings also are available on the Consular Affairs Internet home page: http://travel.state.gov. Consular Affairs Tips for Travelers publication series, which contain information on obtaining passports and planning a safe trip abroad are on the internet and hard copies can be purchased from the Superintendent of Documents, U.S. Government Printing Office, telephone: 202-512-1800; fax 202-512-2250.

Emergency information concerning Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at (202) 647-5225. For after-hours emergencies, Sundays and holidays, call 202-647-4000.

Passport information can be obtained by calling the National Passport Information Center's automated system ($.35 per minute) or live operators 8 a.m. to 8 p.m. (EST) Monday-Friday ($1.05 per minute). The number is 1-900-225-5674 (TDD: 1-900-225-7778). Major credit card users (for a flat rate of $4.95) may call 1-888-362-8668 (TDD: 1-888-498-3648). It also is available on the internet.

Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm give the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-95-8280) is available from the U.S. Government Printing Office, Washington, DC 20402, tel. (202) 512-1800.

Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication).

U.S. citizens who are long-term visitors or traveling in dangerous areas are encouraged to register at the U.S. embassy upon arrival in a country (see "Principal U.S. Embassy Officials" listing in this publication). This may help family members contact you in case of an emergency.

Further Electronic Information

Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; daily press briefings; Country Commercial Guides; directories of key officers of foreign service posts; etc. DOSFAN's World Wide Web site is at http://1997-2001.state.gov.

National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information. It is available on the Internet (www.stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at (202) 482-1986 for more information.

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