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Peru: Country Overview and U.S. Relations


Since 2001, Peru has emerged from a period of domestic
terrorism, authoritarian rule, and erratic economic
performance to one of improved citizen security,
democratic-though   often unstable-governments, and
sustained market-oriented economic growth. The United
States has worked closely with Peru to stem narcotics-
related transnational crime, promote bilateral trade and
sustainable livelihoods for Peruvians, and advance shared
democratic values. Members of Congress may  be interested
in considering U.S. options to strengthen democratic
institutions and address rising poverty and food insecurity.

Pohiti   Stuation
Peru's 1993 constitution, written under the authoritarian
government  of President Alberto Fujimori (1990-2000),
established a representative form of government with
independent executive, legislative, and judicial branches
and strong protections for individual rights. The
constitution maintains a centralized state structure, which
historically has contributed to the concentration of political
and economic power  in the coastal capital of Lima and has
fueled resentment among the country's interior and Andean
populations. These groups assert they are excluded from
decisionmaking with respect to how the wealth generated
by the country's vibrant, export-led economy is distributed.

In recent years, Peruvian politics have been characterized
by ideologically charged debates over the distribution of
proceeds from the lucrative mining sector, representation of
rural and Indigenous communities in national politics, and
the legacy of the authoritarian Fujimori years. Widespread
corruption and inadequate public services have diminished
public trust in Peru's political leadership. The 130-member
unicameral congress is highly fragmented, and political
party affiliations are fluid, complicating Peruvian
presidents' efforts to build governing coalitions. The
constitution's low bar to impeachment and removal by
congress has further weakened the presidency, leading to
the impeachment  or forced resignation of four of six
presidents since 2018.

CastiIo  Administration   and  Impeachment
General elections in April 2021 brought to office President
Pedro Castillo, a little-known teacher and union leader from
Peru's north, and a new congress with representatives from
10 parties. Castillo had been one of 18 presidential
candidates competing in the 2021 elections. He won a
runoff in June 2021, leading the far-left Perd Libre (Free
Peru) party to a narrow victory over Keiko Fujimori
(daughter of former President Fujimori) of the far-right
Fuerza Popular party. Castillo drew support mainly from
Peru's rural areas, including the Andean south, where
lower-income  and Indigenous voters responded to his


campaign  pledges to alleviate poverty and identified with
his campesino (rural peasant) background.


President Castillo took office amid a fragile recovery from
the Coronavirus Disease-2019 (COVID-19)  pandemic. By
mid-2021, Peru had experienced the world's highest
COVID-19   mortality rate, a ranking it maintained at the end
of March 2023 with over 650 deaths per 100,000
population, according to Johns Hopkins University's
Coronavirus Resource Center. Castillo's government also
faced political headwinds, including allegations by the far-
right parties in congress that his election had been
fraudulent. Castillo's first Cabinet, dominated by far-left
Perd Libre members, collapsed after three months amid
political uncertainty and nationalization threats that rattled
markets and sharply devalued Peru's currency (the Sol).
Subsequent Cabinets included more moderate ministers
from other parties of the Peruvian left, as well as
independent members.  Nevertheless, critics derided
Castillo's repeated Cabinet reshuffling-a minister was
replaced every six days, on average-and his appointment
of controversial political figures, including some under
investigation for corruption. In December 2021, Peru's
congress launched the first of three impeachment attempts
against Castillo on the grounds of moral incapacity.

During 2022, Peruvian farmers and poorer households were
hit by soaring prices for fuel, fertilizer, and other imported
commodities  whose supply was disrupted due to spillover
effects from Russia's invasion of Ukraine. In late March,
large anti-government protests erupted in Lima as many
Peruvians blamed their economic hardship on the president.
Opposition members  of congress attempted a second,
failed, impeachment, again alleging that Castillo had
engaged in corruption and was morally unfit to govern. On
December  7, 2022, facing a third impeachment vote, which
he was widely expected to survive, Castillo attempted a so-


April 4, 2023

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