{
  "id": "R40716",
  "type": "CRS Report",
  "typeId": "REPORTS",
  "number": "R40716",
  "active": false,
  "source": "EveryCRSReport.com",
  "versions": [
    {
      "source": "EveryCRSReport.com",
      "id": 350851,
      "date": "2009-07-21",
      "retrieved": "2016-04-07T02:22:43.949120",
      "title": "Peru: Current Conditions and U.S. Relations",
      "summary": "Peru shows promising signs of economic and political stability and the inclination to work with the United States on mutual concerns. President Alan Garc\u00eda is, however facing challenging times during this, the third year of his five-year term.  Widespread social unrest has increased as growing inflation combines with unmet expectations that social conditions for Peru\u2019s poorest citizens would improve with Peru\u2019s economic growth.  Peru\u2019s economy has been stronger than virtually all other Latin American economies since 2001.  Peru\u2019s poverty rates have been dropping since 2000, but still remain high considering Peru\u2019s income levels.  Economic power is, and has been traditionally, concentrated in the hands of a small economic elite of European descent.  The subsistence sector, on the other hand, is concentrated in the mountainous interior, and among the mostly indigenous population there.  Indeed, the percentage of the population living in poverty in cities in 2007 was about 26%, while the percentage living in poverty in rural areas was about 65%.   \nOn June 5, 2009, unrest exploded into a deadly conflict when the government sent police to break up blockades set up by thousands of indigenous protesters in the Amazon.  The deadly clash between the indigenous protesters and police, and the reaction to it, is indicative of the polarization both within Peru and within the Andean region.  The protest stemmed from disputes over who has the right to exploit natural resources in the Amazon and elsewhere in the country.  The fallout from the protests has also heightened regional tensions over how to reduce poverty and the nature of foreign relations.\nWhile Peru\u2019s sound public finances can help offset damage from the global financial crisis, its institutional weaknesses may limit the effectiveness of economic stimulus measures and the Peruvian government\u2019s ability to carry out poverty reduction programs.  As the world economic downturn leads to a dramatic slowing of Peru\u2019s economic growth, this weak institutional capacity may also hinder the government\u2019s ability to implement responsive economic policies effectively.  The Garc\u00eda Administration\u2019s ability to govern may continue to be challenged by ongoing political  unrest.  \nThe violent guerrilla movement Sendero Luminoso, or Shining Path, which  helped drive Peru to the brink of collapse during Garc\u00eda\u2019s first presidency (1985-1990), has reemerged in recent years, now linked to drug-trafficking.\nOn a more positive note, in a landmark legal case, on April 7, 2009, former President Fujimori was convicted and sentenced to 25 years in prison for \u201ccrimes against humanity,\u201d on charges of corruption and human rights abuses.  Analysts regard the court\u2019s decision as a considerable accomplishment for Peru\u2019s judicial system, which has been considered weak and subject to political influence.\nPeru and the United States have a strong and cooperative relationship.  The United States supports the strengthening of Peru\u2019s democratic institutions and respect for human rights. A U.S.-Peru Trade Promotion Agreement (PTPA) went into effect on February 1, 2009.  The two countries also cooperate on counter-narcotics efforts, maritime concerns, combating human trafficking, and improving disaster preparedness.",
      "type": "CRS Report",
      "typeId": "REPORTS",
      "active": false,
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      "topics": []
    }
  ],
  "topics": [
    "Foreign Affairs",
    "Intelligence and National Security"
  ]
}