Peru vs. Bolivia

Bolivia, named after independence fighter Simon BOLIVAR, broke away from Spanish rule in 1825; much of its subsequent history has consisted of a series of coups and countercoups, with the last coup occurring in 1978. Democratic civilian rule was established in 1982, but leaders have faced difficult problems of deep-seated poverty, social unrest, and illegal drug production.

In December 2005, Bolivians elected Movement Toward Socialism leader Evo MORALES president - by the widest margin of any leader since the restoration of civilian rule in 1982 - after he ran on a promise to change the country's traditional political class and empower the nation's poor, indigenous majority. In December 2009 and October 2014, President MORALES easily won reelection. His party maintained control of the legislative branch of the government, which has allowed him to continue his process of change. In February 2016, MORALES narrowly lost a referendum to approve a constitutional amendment that would have allowed him to compete in the 2019 presidential election. However, a 2017 Supreme Court ruling stating that term limits violate human rights provided the justification for MORALES to be chosen by his party to run again in 2019. MORALES attempted to claim victory in the 20 October 2019 election, but widespread allegations of electoral fraud, rising violence, and pressure from the military ultimately forced him to flee the country. An interim government, led by President Jeanine ANEZ Chavez, prepared new elections that took place on 18 October 2020.

earthquakes, tsunamis, flooding, landslides, mild volcanic activity

volcanism: volcanic activity in the Andes Mountains; Ubinas (5,672 m), which last erupted in 2009, is the country's most active volcano; other historically active volcanoes include El Misti, Huaynaputina, Sabancaya, and Yucamane; see note 2 under "Geography - note"

flooding in the northeast (March to April)

volcanism: volcanic activity in Andes Mountains on the border with Chile; historically active volcanoes in this region are Irruputuncu (5,163 m), which last erupted in 1995, and the Olca-Paruma volcanic complex (5,762 m to 5,167 m)

note 1: shares control of Lago Titicaca, world's highest navigable lake, with Bolivia; a remote slope of Nevado Mismi, a 5,316 m peak, is the ultimate source of the Amazon River

note 2: Peru is one of the countries along the Ring of Fire, a belt of active volcanoes and earthquake epicenters bordering the Pacific Ocean; up to 90% of the world's earthquakes and some 75% of the world's volcanoes occur within the Ring of Fire

note 3: on 19 February 1600, Mount Huaynaputina in the southern Peruvian Andes erupted in the largest volcanic explosion in South America in historical times; intermittent eruptions lasted until 5 March 1600 and pumped an estimated 16 to 32 million metric tons of particulates into the atmosphere reducing the amount of sunlight reaching the earth's surface and affecting weather worldwide; over the next two and a half years, millions died around the globe in famines from bitterly cold winters, cool summers, and the loss of crops and animals

note 4: the southern regions of Peru and the extreme northwestern part of Bolivia are considered to be the place of origin for the common potato

Peru's urban and coastal communities have benefited much more from recent economic growth than rural, Afro-Peruvian, indigenous, and poor populations of the Amazon and mountain regions. The poverty rate has dropped substantially during the last decade but remains stubbornly high at about 30% (more than 55% in rural areas). After remaining almost static for about a decade, Peru's malnutrition rate began falling in 2005, when the government introduced a coordinated strategy focusing on hygiene, sanitation, and clean water. School enrollment has improved, but achievement scores reflect ongoing problems with educational quality. Many poor children temporarily or permanently drop out of school to help support their families. About a quarter to a third of Peruvian children aged 6 to 14 work, often putting in long hours at hazardous mining or construction sites.

Peru was a country of immigration in the 19th and early 20th centuries, but has become a country of emigration in the last few decades. Beginning in the 19th century, Peru brought in Asian contract laborers mainly to work on coastal plantations. Populations of Chinese and Japanese descent - among the largest in Latin America - are economically and culturally influential in Peru today. Peruvian emigration began rising in the 1980s due to an economic crisis and a violent internal conflict, but outflows have stabilized in the last few years as economic conditions have improved. Nonetheless, more than 2 million Peruvians have emigrated in the last decade, principally to the US, Spain, and Argentina.

Bolivia ranks at or near the bottom among Latin American countries in several areas of health and development, including poverty, education, fertility, malnutrition, mortality, and life expectancy. On the positive side, more children are being vaccinated and more pregnant women are getting prenatal care and having skilled health practitioners attend their births.

Bolivia's income inequality is the highest in Latin America and one of the highest in the world. Public education is of poor quality, and educational opportunities are among the most unevenly distributed in Latin America, with girls and indigenous and rural children less likely to be literate or to complete primary school. The lack of access to education and family planning services helps to sustain Bolivia's high fertility rate-approximately three children per woman. Bolivia's lack of clean water and basic sanitation, especially in rural areas, contributes to health problems.

Between 7% and 16% of Bolivia's population lives abroad (estimates vary in part because of illegal migration). Emigrants primarily seek jobs and better wages in Argentina (the principal destination), the US, and Spain. In recent years, more restrictive immigration policies in Europe and the US have increased the flow of Bolivian emigrants to neighboring countries. Fewer Bolivians migrated to Brazil in 2015 and 2016 because of its recession; increasing numbers have been going to Chile, mainly to work as miners.

Alliance for Progress (Alianza para el Progreso) or APP [Cesar ACUNA Peralta]
American Popular Revolutionary Alliance or APRA [Cesar TRELLES Lara]
Broad Front (Frente Amplio; also known as El Frente Amplio por Justicia, Vida y Libertad) (coalition includes Nuevo Peru [Veronika MENDOZA], Tierra y Libertad [Marco ARANA Zegarra], and Fuerza Social [Susana VILLARAN de la Puente]
Free Peru (Peru Libre) [Vladimir CERRON Rojas]
National Solidarity (Solidaridad Nacional) or SN [Luis CASTANEDA Lossio]
National Victory (Victoria Nacional) or VN [George FORSYTH Sommer]
Peru Posible or PP (coalition includes Accion Popular and Somos Peru) [Alejandro TOLEDO Manrique]
Peruvian Aprista Party (Partido Aprista Peruano) or PAP [Javier VELASQUEZ Quesquen] (also referred to by its original name Alianza Popular Revolucionaria Americana or APRA)
Peruvian Nationalist Party [Ollanta HUMALA]
Peruvians for Change (Peruanos Por el Kambio) or PPK [Pedro Pablo KUCZYNSKI]
Popular Action (Accion Popular) or AP [Mesias GUEVARA Amasifuen]
Popular Christian Party (Partido Popular Cristiano) or PPC [Lourdes FLORES Nano]
Popular Force (Fuerza Popular; formerly Fuerza 2011) [Keiko FUJIMORI Higuchi]
Popular Renewal (Renovacion Popular) [Rafael LOPEZ ALIAGA]
Purple Party (Partido Morado) [Julio Armando GUZMAN Caceres]
Social Integration Party (Avanza Pais - Partido de Integracion Social) [Pedro CENAS Casamayor]
Together For Peru (Juntos por el Peru) or JP [Robert SANCHEZ Palomino]
We Are Peru (Somos Peru) [Patricia LI]
We Can Peru (Podemos Peru) [Jose Leon LUNA Galvez]

Peru's economy reflects its varied topography - an arid lowland coastal region, the central high sierra of the Andes, and the dense forest of the Amazon. A wide range of important mineral resources are found in the mountainous and coastal areas, and Peru's coastal waters provide excellent fishing grounds. Peru is the world's second largest producer of silver and copper.

The Peruvian economy grew by an average of 5.6% per year from 2009-13 with a stable exchange rate and low inflation. This growth was due partly to high international prices for Peru's metals and minerals exports, which account for 55% of the country's total exports. Growth slipped from 2014 to 2017, due to weaker world prices for these resources. Despite Peru's strong macroeconomic performance, dependence on minerals and metals exports and imported foodstuffs makes the economy vulnerable to fluctuations in world prices.

Peru's rapid expansion coupled with cash transfers and other programs have helped to reduce the national poverty rate by over 35 percentage points since 2004, but inequality persists and continued to pose a challenge for the Ollanta HUMALA administration, which championed a policy of social inclusion and a more equitable distribution of income. Poor infrastructure hinders the spread of growth to Peru's non-coastal areas. The HUMALA administration passed several economic stimulus packages in 2014 to bolster growth, including reforms to environmental regulations in order to spur investment in Peru's lucrative mining sector, a move that was opposed by some environmental groups. However, in 2015, mining investment fell as global commodity prices remained low and social conflicts plagued the sector.

Peru's free trade policy continued under the HUMALA administration; since 2006, Peru has signed trade deals with the US, Canada, Singapore, China, Korea, Mexico, Japan, the EU, the European Free Trade Association, Chile, Thailand, Costa Rica, Panama, Venezuela, Honduras, concluded negotiations with Guatemala and the Trans-Pacific Partnership, and begun trade talks with El Salvador, India, and Turkey. Peru also has signed a trade pact with Chile, Colombia, and Mexico, called the Pacific Alliance, that seeks integration of services, capital, investment and movement of people. Since the US-Peru Trade Promotion Agreement entered into force in February 2009, total trade between Peru and the US has doubled. President Pedro Pablo KUCZYNSKI succeeded HUMALA in July 2016 and is focusing on economic reforms and free market policies aimed at boosting investment in Peru. Mining output increased significantly in 2016-17, which helped Peru attain one of the highest GDP growth rates in Latin America, and Peru should maintain strong growth in 2018. However, economic performance was depressed by delays in infrastructure mega-projects and the start of a corruption scandal associated with a Brazilian firm. Massive flooding in early 2017 also was a drag on growth, offset somewhat by additional public spending aimed at recovery efforts.

Bolivia is a resource rich country with strong growth attributed to captive markets for natural gas exports - to Brazil and Argentina. However, the country remains one of the least developed countries in Latin America because of state-oriented policies that deter investment.

Following an economic crisis during the early 1980s, reforms in the 1990s spurred private investment, stimulated economic growth, and cut poverty rates. The period 2003-05 was characterized by political instability, racial tensions, and violent protests against plans - subsequently abandoned - to export Bolivia's newly discovered natural gas reserves to large Northern Hemisphere markets. In 2005-06, the government passed hydrocarbon laws that imposed significantly higher royalties and required foreign firms then operating under risk-sharing contracts to surrender all production to the state energy company in exchange for a predetermined service fee; the laws engendered much public debate. High commodity prices between 2010 and 2014 sustained rapid growth and large trade surpluses with GDP growing 6.8% in 2013 and 5.4% in 2014. The global decline in oil prices that began in late 2014 exerted downward pressure on the price Bolivia receives for exported gas and resulted in lower GDP growth rates - 4.9% in 2015 and 4.3% in 2016 - and losses in government revenue as well as fiscal and trade deficits.

A lack of foreign investment in the key sectors of mining and hydrocarbons, along with conflict among social groups, pose challenges for the Bolivian economy. In 2015, President Evo MORALES expanded efforts to court international investment and boost Bolivia's energy production capacity. MORALES passed an investment law and promised not to nationalize additional industries in an effort to improve the investment climate. In early 2016, the Government of Bolivia approved the 2016-2020 National Economic and Social Development Plan aimed at maintaining growth of 5% and reducing poverty.

economic impact on telcom services during pandemic due to consumer unemployment; good mobile operator competition with LTE services; fixed-line tele-density remains among lowest in South America, with obstacles to growth including widespread poverty, fixed-to-mobile substitution, expensive telephone services, and geographical inaccessibility in the Andean mountains and Amazon jungles; government investment in underserved areas with fiber backbone; government facilitated virtual learning during pandemic via tablets with Internet connectivity; 3G network and new LTE services expanded providing mobile broadband to rural communities, though low penetration still exists; major importer of broadcasting equipment and computers from China (2021)

with low national GDP and remote landlocked geography, Bolivia's telecom services are historically expensive and neglected resulting in low penetration; fixed telecom market is provided by non-profit cooperatives focused on improvement of services such as broadband and paid TV services; some operators adopted fixed-wireless technologies and fiber-optic capacity; fixed broadband services migrating from DSL to fiber remain expensive and largely unavailable in many areas; historically relied on satellite services or terrestrial links and inaugurated a new cable running via Peru to the Pacific; operator aims to increase coverage through mobile networks for voice and data access, especially to rural areas; space agency plans to boost satellite-based Internet; in 2020, communications towers in Yapacani were destroyed due to pandemic conspiracy fears; importer of broadcasting equipment from China (2021)

Chile and Ecuador rejected Peru's November 2005 unilateral legislation to shift the axis of their joint treaty-defined maritime boundaries along the parallels of latitude to equidistance lines which favor Peru; organized illegal narcotics operations in Colombia have penetrated Peru's shared border; Peru rejects Bolivia's claim to restore maritime access through a sovereign corridor through Chile along the Peruvian border

Chile and Peru rebuff Bolivia's reactivated claim to restore the Atacama corridor, ceded to Chile in 1884, but Chile offers instead unrestricted but not sovereign maritime access through Chile for Bolivian products; contraband smuggling, human trafficking, and illegal narcotic trafficking are problems in the porous areas of its border regions with all of its neighbors (Argentina, Brazil, Chile, Paraguay, and Peru)