Discover Peru
The country's administrative division is organized around 24 departments (departamentos) and one constitutional province. These entities are: Amazonas, Ancash, Apurimac, Arequipa, Ayacucho, Cajamarca, Cusco, Huancavelica, Huanuco, Ica, Junin, La Libertad, Lambayeque, Lima, Loreto, Madre de Dios, Moquegua, Pasco, Piura, Puno, San Martín, Tacna, Tumbes, Ucayali, and Callao.
The political system is defined as a constitutional republic, led by a President of the Republic elected by universal suffrage for a five-year term. The latter assumes the dual role of head of state and government, being responsible for enforcing laws, national defense, and international diplomacy. The legislative power, meanwhile, rests on a unicameral Congress, whose members are also elected for a five-year term.
The modern political history of the country follows multiple periods of military governments, giving way to a stabilized democracy at the end of the 20th century. This stability is notably based on the 1993 constitution, adopted under the administration of Alberto Fujimori. Despite recent turmoil and certain corruption scandals involving figures like Alan García Pérez, elections are held regularly and democratic institutions have consolidated, offering Peru relative stability compared to other South American nations.
Territorially, a vast decentralization process has granted departments increased autonomy for managing local affairs. Each department is administered by a directly elected governor, supported by a regional council. However, Lima, as the central government, retains a predominant influence, exclusively directing foreign policy, public finances, and defense.
On an international level, Peruvian diplomacy is highly active within major institutions such as the Organization of American States (OAS) and the UN. The country has notably distinguished itself by its peacemaking role in the region, definitively settling its border disputes through major negotiations, as was the case with Ecuador during the 1990s.
Since the early 1990s, Peru's economy has undergone a profound transition towards a free market. This opening was realized through significant waves of privatizations, affecting key sectors such as telecommunications and the mining industry. This latter sector is vital: the country derives an immense part of its export revenue from its wealth of natural resources, primarily gold, silver, and copper.
The path to this prosperity has, however, been complex. In the 1980s, Peru went through a devastating crisis marked by galloping hyperinflation, which peaked at a staggering rate of over 7,000% in 1988. External debt exploded, and the government's decision to suspend debt payments in 1985 led to an abrupt severance of relations with international financial institutions such as the World Bank and the IMF.
The situation was not remedied until Alberto Fujimori came to power in 1990, with the implementation of an extremely rigorous austerity program. These structural reforms, coupled with a new monetary policy, made it possible to crush inflation and restore the confidence of foreign investors. The results were spectacular: growth rebounded to 6% in 1993, then to 8.6% in 1994.
Despite this incredible resilience, the national economy remains structurally exposed to the vagaries of global commodity prices (led by copper). Moreover, it is cyclically weakened by extreme climatic factors. The El Niño phenomenon, for example, regularly triggers major floods and severe droughts that paralyze entire sectors of agriculture and the coastal fishing industry.
To mitigate this dependency, Peru has massively diversified its activities over the past two decades. Agro-industry, financial services, and especially tourism have become true driving forces. With its unique heritage, including historical jewels like Machu Picchu, the country captures millions of visitors each year, which constitutes one of the largest sources of foreign exchange.
Although hit hard by the recession and rising unemployment linked to the COVID-19 pandemic in 2020, the Peruvian economy demonstrated its solidity. The reforms of previous years fostered a rapid recovery starting in 2021, paving the way for very positive growth forecasts for the future.
Meeting the needs of more than 33 million inhabitants spread across an extreme geography, the Peruvian transport network is vast but sometimes uneven in terms of quality. Of the roughly 70,000 kilometers of roads in the country, a large portion suffers from poor condition, particularly in the rural Andean regions.
The main gateway to the country is the Jorge Chávez International Airport, located in Lima, which acts as a major hub serving the rest of Latin America, Europe, and the United States. Domestic air transport is supported by regular national airlines (such as AeroPeru and Latam), offering an essential network despite airport taxes that can sometimes be high.
The bus network remains the preferred means of transport to connect remote regions. However, caution is advised for night journeys, which sometimes involve risks of assault on certain isolated roads.
The railway network, although geographically very limited, is among the most spectacular in the world. The mythical tourist line winding from Cusco to Aguas Calientes (the gateway to Machu Picchu) is the perfect example. Nevertheless, the high mountain environment subjects these tracks to frequent disruptions caused by landslides or bad weather conditions.
In the east of the country, in the vast Amazon region, land routes give way almost entirely to river transport. The Peruvian Amazon has 8,600 kilometers of navigable waterways that are truly vital arteries. Taxi-boats provide essential links connecting isolated communities to jungle-bound urban centers, such as Iquitos and Pucallpa.
Finally, on the coast, the international economy is supported by a network of main ports including Callao, Chimbote, Ilo, Iquitos (river port), Matarani, and Paita. The export of mining, agricultural, and oil production relies massively on these terminals, geared notably towards North America and Asian markets. The development and modernization of these port infrastructures remain a top priority for the government to increase Peru's competitiveness on the global stage.