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1 1 (April 1, 2024)

handle is hein.crs/goveovm0001 and id is 1 raw text is: Congres Informing ihb rionaI Ressrch Service legi tived dae sin'e 1914 Updated April 1, 2024 Peru: Country Overview and U.S. Relations Peru is a geographically and ethnically diverse country encompassing portions of the Amazon Basin, the Andean highlands, and the Pacific coast of South America (Figure 1). Since the early 2000s, Peru has sustained its democratic institutions and outpaced its neighbors in terms of economic growth while reducing poverty and improving security. Nevertheless, some observers argue that endemic corruption, stark inequality, and a growing center-periphery divide threaten the future of democracy in Peru, as well as the country's economic growth prospects. The United States works closely with Peru to stem narcotics-related transnational crime, promote bilateral trade, and advance shared democratic values. Some Members of the 118th Congress have monitored conditions in Peru and U.S. policy toward the country. During the remainder of the second session, Congress may consider whether or not to continue shaping the bilateral partnership through foreign assistance appropriations and other legislative and oversight efforts. PoiticaI Situation Peru's 1993 constitution, written under the authoritarian government of former President Alberto Fujimori (1990- 2000), established a representative form of government with independent executive, legislative, and judicial branches. Political and economic power historically have been concentrated in the coastal capital of Lima, fueling 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 export-led economy is distributed. Since the early 2000s, Peruvian politics have been shaped by ideologically charged debates over the distribution of proceeds from the mining sector, representation of rural and Indigenous communities in national politics, and the legacy of the Fujimori years. Corruption scandals involving presidents and other high-level officials have shaken public trust in Peru's political leadership. The 130-member unicameral congress is fragmented, and political party affiliations are fluid, complicating efforts to build governing coalitions. The constitution's low bar to impeachment and removal by congress has weakened the presidency, leading to the impeachment or forced resignation of four of six presidents since 2018. Actions taken since September 2023 by the Peruvian congress to remove members of a judicial oversight entity have also prompted observers and some Members of Congress to voice concerns about judicial independence. Castilo Admnistration and Impeachment General elections in April 2021 brought to office President Pedro Castillo of the leftist Perd Libre (Free Peru) party. Castillo drew support mainly from Peru's rural areas where lower income and Indigenous voters responded to his campaign pledges to alleviate poverty and identified with his rural background. Figure I. Peru at a Glance Source: CRS with statistics from CIA World Factbook (CIA); Instituto Nacional de Estadistica e Informdtica (INEI); International Monetary Fund's World Economic Outlook, October 2023 (IMF); Trade Data Monitor (TDM). Upon taking office, Castillo faced political and economic headwinds that appear to have been exacerbated by his difficulty managing his administration. Calls by Perd Libre ministers to nationalize sectors of the economy rattled markets. Frequent cabinet reshuffles did not alleviate domestic and international skepticism about Castillo's ability to govern Peru and manage its economy. Opposition parties in Peru's congress tried unsuccessfully to impeach Castillo twice less than one year into his presidency. On December 7, 2022, Castillo attempted what some analysts described as a self-coup, when he tried to dismiss congress and rule by decree, reportedly to preempt a third impeachment vote. Instead, Peru's congress met and immediately impeached Castillo, who was facing numerous corruption allegations. Castillo was later arrested and charged with violating the constitution and corruption; he remains in pretrial detention as of March 2024. Boluarte Administration and the Pa 1ticai Crisis Under the constitutional rules of succession, Vice President Dina Boluarte became Peru's first woman president. Boluarte had been elected on the Perd Libre party slate but distanced herself from Castillo and the party once in office. Boluarte faced an immediate challenge to her authority from Castillo's rural and Indigenous supporters, who considered the former president a champion of their rights. Following Castillo's arrest, tens of thousands of his supporters staged protests across much of Peru's interior. Protesters' demands included Castillo's release, President

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