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1 1 (January 10, 2024)

handle is hein.crs/govenyk0001 and id is 1 raw text is: Peru: Country Overview and U.S. Relations Peru is a geographically and ethnically diverse country of 34 million inhabitants encompassing large portions of the Amazon Basin, the Andean highlands, and the Pacific coast of South America. 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. Some observers argue that endemic corruption and a growing center-periphery divide threaten the future of democracy in Peru. Political instability also appears to be dampening economic growth prospects. The United States works 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 consider U.S. options to further strengthen bilateral ties, support Peru's democratic institutions and anti-corruption capacity, reduce rural healthcare and nutritional deficits, and counter China's growing influence in the economy. Political Situation 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. 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. In recent years, Peruvian politics has been shaped 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. Frequent presidential corruption scandals have shaken 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. Castiflo Administration and Impeachment General elections in April 2021 brought to office President Pedro Castillo, of the far-left Perd Libre (Free Peru) party, and a new congress with representatives from 10 parties. 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. Updated January 10, 2024 Figure I. Peru at a Glance Castillo's administration, staffed initially by Perd Libre party members, faced political and economic headwinds. Right-leaning parties in Peru's congress, led by the runner- up in the 2021 presidential election, Keiko Fujimori (daughter of former President Fujimori), alleged that Castillo's election had been fraudulent and filed an appeal that delayed the final election results. Threats by Perd Libre ministers to nationalize sectors of the economy rattled markets and contributed to a sharp devaluation of Peru's currency. Frequent Cabinet reshuffles by President Castillo did little to address domestic and international skepticism over his ability to govern Peru and manage its economy. In mid-2021, anti-Castillo demonstrators held large rallies in Lima and other major cities. Opposition parties in Peru's congress attempted unsuccessfully to impeach Castillo in December 2021 and again in March 2022. 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. Boluarte Administration and the Political Crisis After Castillo's removal from office, Vice President Dina Boluarte became Peru's first woman president under the constitutional rules of succession. Boluarte, a Lima-based lawyer and civil servant, had been elected on the Perd Libre party slate. However, she 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. In the days 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 Boluarte's resignation, early elections, and the convening of a

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