Abundant mineral resources, including oil. Rich fish stocks in the Pacific. Wide variety of climates allowing diverse and productive agriculture; cotton and coffee are important. Well-developed textile industry.
Weaknesses
Hyperinflation in the late 1980s destroyed confidence domestically and abroad. Foreign investors discouraged by political instability and terrorism. High levels of poverty exacerbate social tensions.
Profile
Wealth and economic activity in Peru is largely confined to the cities of the coastal plain. The inhabitants of the Andean uplands are subsistence farmers or coca producers. Disrupting the coca crop has not only damaged an important local economy, but also driven the growers into the hands of guerrilla groups such as "Sendero Luminoso."
The thrust of state economic policy has changed radically since Peru's bankruptcy under the left-wing APRA administration of President Alan Garcφa. The Fujimori government is selling off state interests in everything from copper mining and oil exploitation to ports and roads, in one of the most radical and rapid privatizations in Latin America.
